In short a Buyer’s Agent represents you the buyer, not the seller.  But there is more to it.  If you were to look at a house with the listing agent, the person that his or her sign is in the front yard, you would have no representation, that agent is representing the seller, and it is their duty to get the highest and best price for their seller. A buyer’s agent is looking out for you and your best interest. Yes Buyers need and deserve representation. Please contact me with your questions about Buyer’s Agency.

Responsibilities of a Buyer’s Agent?
 
CONFIDENTIALITY: Prohibits the agent from disclosing confidential information obtained from you such as: the price you are willing to pay, the amount of mortgage you are actually qualified for, how much cash you have to work with or, the level of your motivation to buy a particular home.

ACCOUNTABILITY: Requires the agent to properly handle all money received, including escrow deposits.

REASONABLE SKILL & CARE: Requires the agent to protect you from foreseeable risks, and to recommend that you obtain expert advice when your needs are outside the agent’s expertise.

LOYALTY, UNDIVIDED: Prohibits the agent from advancing any interests that are adverse to your own, including the agent’s own interests.

OBEDIENCE TO LAWFUL INSTRUCTIONS: Requires the agent to act subject to your control, and for the agent to obtain and follow all lawful instructions from you.

FULL DISCLOSURE: Requires the agent to disclose all information concerning your home purchase, which might affect your best interests. Things such as the seller’s motivation for selling, price comparables for similar homes in the area, deferred maintenance or defects in the home, listing history of the home, and any potential problems that might affect the value of the home.

Even here in Northwest Arkansas I am surprised how many times people do not know who represents them.

I found this article on the Internet many years ago and have posted on my web sites because it is good information for buyers. I do not take credit in writing it but would like to share it.

Steven Atwell

The Historical Model

Historically, most people began their home buying search by contacting real estate agents about homes advertised in home magazines and newspapers, or advertised by way of “open houses” or “for sale” signs posted on the front lawn. Through this process they would very often make contact with an agent who seemed pleasant and knowledgeable and would begin looking at homes for sale with “their agent.”

What they generally did not know, however, was that the person they considered “their agent” was, in fact, the seller’s agent. As a seller’s agent, “their agent” was bound, legally and ethically to look out for the seller’s best interests, not the buyers. Therefore, information shared by the buyers with “their agent” relative to negotiation and pricing strategies would, as a matter of agency law and ethics be required to be communicated to the seller. Likewise, opinions offered by “their agent” concerning any matter relating to the transaction would be those designed to help the seller achieve their goals: the highest price on the best terms.

Often privileged and confidential information, for example “my negotiation range” or an admission that “this home is the one for me”, would be relayed as a matter of law and ethics to the seller via that chatty, cheerful helpful real estate agent who was kind enough to escort the buyers through a selection of homes.

If this surprises and shocks you, do not feel alone. A number of national surveys have concluded that most home buyers were not aware of this practice.

If you are offended by this, you are not alone. It was this reaction that led to a transformation in the delivery of real estate brokerage services nationwide. This sense of astonishment at how business was conducted in the past has resulted in the concept of “Buyer Brokerage” and with it a revolution in the way real estate services are delivered to the home buyer.

Real Estate Brokerage Today –

Today, “traditional” real estate brokerage is past. The state of the art in brokerage services for the home buyer is Buyer Brokerage. This is the answer to the question of how to ensure that both parties to a transaction receive the same level of effective, confidential representation and service both need and deserve. While a seller’s agent, often referred to as a “listing agent”, pursues the seller’s agenda of obtaining the best offer at the highest price, a buyer’s agent is free to devote their full attention to the buyer’s needs and goals. In fact, a buyer’s agent as a matter of law and ethics is bound to serve the needs of their principal, the buyer.

Finally, buyers today have an opportunity to enjoy the same level of effective, confidential and professional services that historically were available only to the seller. Buyer- consumers now control their own inside track.

Some of the needs served by a Buyer’s Broker include: