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Advantages of Working with a Buyer's Agent
as seen in the Arizona Republic,
October 2002 ~ Reviewed December 2004

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When most buyers are ready to buy a house, they can't wait to find the perfect one. Sometimes buyers are in such a hurry that they go to open houses or new home subdivisions without being accompanied by a real estate agent. The emotional surge in finding a house that they love can lead buyers to miss important aspects of the property they're excited about or the transaction that results in their quick offer. This can result in buyers making offers that are too high, not asking for standard concessions from a seller, or not having their interests protected to the degree they deserve.

Buyers can avoid falling into this trap by finding an agent that they like and trust before starting to look at houses. Working with an agent met at an open house or a model home may mean that the buyer will be unrepresented or under-represented. While all real estate licensees are required to treat all parties honestly and fairly, when a licensee represents the seller only, the buyer may not be represented in a transaction as completely as would be expected from a buyer agent who knows the buyer's needs and desires before the home search begins.

What are the advantages for buyers who have their own representation?
A buyer's agent or buyer's representative works for and owes fiduciary responsibilities to the buyer and keeps the buyer's interests protected throughout the transaction, looking out for the buyer's interests throughout the inspections and other contract contingencies until closing. Also, any information that buyers share with their agents is confidential and any information that the seller or seller's agent shared with the buyer's agent must also be disclosed to the buyer by the buyer's agent. Other examples include:
  • Shortening the search. A buyer's agent would take the extra time to learn about and evaluate the buyer's needs and wants. They clearly understand the buyer's requirements which allows the search to be more focused and can be considerably shorter. Studies by the NATIONAL ASSOCIATION OF REALTORS® have shown that prospective buyer found a home one week faster while still looking at three more properties than buyers not using a buyer's agent.
  • Looking for problems. A buyer's agent will research potential properties to look for potential problems that might make the property less valuable or marketable in the future. These kinds of efforts go a long way to assist the buyer to make an informed decision about which house to buy and how much to offer.
  • Assisting with financing. Buyer's agents will help the buyer find qualified lenders and loan programs that best fit their situations. This extra effort could possibly save the buyer money in down payment or long-term loan costs.
  • Negotiating the best terms of a purchase offer, which can include earnest money, contingencies, inspections, financing, possession dates, and more. The best terms for a buyer may not necessarily mean the lowest price. For example, the amount of earnest money and the circumstances in which the buyer would have it returned to them if the contract did not proceed to closing is extremely important to most buyers. A buyer's agent would insure that the buyer's unique circumstances are addressed in the contract. And, if the buyer's possession of the property falls before the close of escrow or if the seller stays for a period of time after closing, a buyer's agents careful scrutiny is needed to make sure that the buyer's interests are protected in case something goes wrong. The possession date, length of time to get a loan, and special contingencies important to the buyer such as having to sell their own home first may be far more important to a buyer than the lowest price.
How do buyers find the right buyer's agent?
Buyers should find an agent they trust completely. Sometimes this can take interviewing several agents to find just the right one. Experience, professional designations, successful track records and personal referrals are all important. But what's most important is the buyers feel comfortable with the agent they choose and are ready to share some personal information and specific needs with that agent. Trust is the key from both the buyer's and agent's perspective. Agents being interviewed should be expected to explain what they specifically do to serve buyer clients and how they would best represent a buyer. Agents should also be expected to explain the different types of agency representations possible.

Once the buyer finds the agent that meets these requirements, it's important for the buyer to discuss all the terms of any representation with the agent at their first substantial meeting before they look at homes. Many buyer agents will ask the buyer to enter into an exclusive buyer representation agreement. This type of agreement will spell out the duties that the agent owes to the buyer, plus the responsibilities that the buyer has to the transaction. Most will also contain provisions about compensation. Although most buyer agents in Arizona are ultimately paid by the listing broker who shares the seller's commission with the buyer's agent, a buyer representation agreement will probably spell out under what circumstances the buyer could owe a commission to the agent.
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