From searching for property, homes and cabins to post-closing, the home buying process can be a very complicated transaction.
What Is A Buyer’s Agent?
A buyer’s agent is a licensed real estate professional who has a signed contract with and represents the buyer during the home and property buying process. Buyer’s agents are legally obligated to protect their client’s best interests. They should put in a strong effort to find homes for you to view, submit offers to listing agents and negotiate the most favorable purchase contracts that meet their buyers needs.
Exclusive, Non-Exclusive and Dual Representation
When it comes to real estate transactions, there’s a big difference between having an exclusive agent, non esclusive and dual agency representation.
Exclusive Buyer’s Agent Representation: A contract bwteen the buyer(s) and their agent of choice. Upon signing of this agreement, the realtor becomes the buyer’s advocate and is ethically required to look out for the buyer’s best interests. This includes confidentiallity and reasonable care.
Non-Exclusvie Buyers Agents Representation: Same elements of the exclusive representation agreement, but the buyer can work with other realtors too.
Dual agency or dual representation: A single real estate agent works for both the buyer and the seller in a real estate transaction. About 1/2 of our transactions are dual agency. With duel agency, the realtor becomes more of a medator and must take reasonable care not to put a buyer/seller to a disadvantage to the other party. In dual agency, the realtor is still obligated to protect the confidential information of each party. Some people worry that dual representation can potentially lead to a conflict of interest. This is because the agent must work to balance the needs of both the buyer and the seller at the same time. In Minnesota, when a realtor is representing both buyer and seller, the realtor has ethical obligations they must follow including confidentiality.
How Can A Buyer’s Agent Help In The Home Buying Process?
When you enlist the help of a buyer’s agent, you can expect them to assist with several aspects of the buying process which inlcude the following?
Find Properties To View
We can help direct you to properties that may be a good fit for your needs. We will ask you questions to get a good sense of what you’re looking for then help ensure you don’t miss any properties that may be a good match. As your buyer’s agent we can also give you access to the , which contains all the homes for sale in a given area and your realtor may know of off-market listings or other listings coming up soon that may interest you.
Schedule Viewings
Once you find properties you’d like to see, your buyer’s agent can schedule showing and gather other information on these properties including disclosures, well and septic information, surveys, floodplain issues, sale history or anything else that may be of importance or concern.
Expert Property Insight and Market Knowledge
We provide expert insight into the local market and recent properties that have sold, both on and off market. We can also help you identify potential probelms or issues with properties that you are considering.
Listing Price Analysis
We can help you determine the fair marekt value of properties that you are considering. This information can be used to make a more competitive and fair offer.
Stragetic Offering Presentation
When you find a property you want to purchase, your buyer’s agent can write up an offer for you and get it submitted. We will will work with you in customizing your offer to meet your specific needs, criteria and concerns and advise you on how to structure your offer so it will most likely get accepted. We present your offer professionally and persuasively.
Negotiate With The Listing Agent
Often an offer from a buyer is met with a counteroffer from the seller. We can negotiate the sales price and any conditions or other terms in the contract. This may include price, financing, possession dates, transfer of personal items, etc.
Manage Your Paperwork
Buying a home means keeping track of a lot of important documents. Your buyer’s agent should stay on top of your paperwork so nothing important gets overlooked. This paperwork can include your:
Preapproval letter
- Disclosure statements
- Offer letters
- Purchase agreement
- Inspection reports
- Title paperwork
Make Recommendations For Other Real Estate Professionals
A buyers agent can put you in touch with people in their network including title companies, home inspectors, handy men and contractors, moving and storage companies and cleaners. If your buyer’s agent is experienced, they should be able to recommend professionals they know to be reputable so you can be sure you’re working with people you can trust.
Final Walk Through
We will accompnay you to the final property walk-through to identify any new potential problems prior to closing.
Post Closing Support
We provide you with support after the closing of your property. We can advise on transfer of utilities, possession issues, keys and more to make sure the transition is as smooth as possible.
How Does A Buyer’s Agent
Get Paid?
Recent significant changes now affect a buyer’s agent commissions in Minnesota due to a federal settlement involving the National Association of Realtors (NAR). These changes are designed to increase transparency and alter some existing commission structures before touring homes.
Witten agreements with Buyers: Buyers will how need to sign written agreements with agents BEFORE touring homes and properties. This applies to both in person and virtual tours. The representation agreements will clarify the services provided by the agent and any possible associated costs. This ensures that buyers understand the compensation structure and services offered by their agents. and gives buyers more control over what their agents are being paid for their services.
The shift creates a direct financial relationship between buyers and their agents whereas before, buyers and their agent typically relied on sellers to pay the buyer’s agent. Buyers can ask sellers to pay all or part of any buyer agent fees as part of an offer.
Buyer Broker/Agent Compensation Structure: The types of compensation available for buyer agents can take multiple forms, including but not limited too:
Fixed-fee commission paid directly by the buyer to their agent at the time of closing.
Fee negogiated by the seller and buyer in the purchase agreement in which the seller pays all or part of the buyer agent fee at the time of closing
Portion of the listing agent compensation is paid to the buyer’s agent at the time of closing.