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What Does Buyer Agency Mean?

Blogged on 2/22/2010 by McGuire Real Estate

I just met with a young couple on Saturday. They are about to move to the peninsula to purchase their first home.

They told me that they were speaking with a couple of other agents, and had not yet decided with whom they would work yet. We met for an hour before we went out to check out a few places. I covered my usual question and answers and overview of my role as a Realtor. Later that evening I received an e-mail, they had decided to “go with me!”

One of the questions they had asked me was ’We are a bit unsure about what buyer representation means. My wife and I thought it meant any house you show us would be “yours” so to speak. What if we found a home on our own?"

Interestingly, this is a question that I have heard before. I believe that it is based on the premise that the primary function of a Realtor is to find and show the home that a buyer eventually buys. And, as logic would have it, therefore, the Realtor earns their commission.

Often I do find the home for my clients; after all Realtors are always looking at new homes on the market. However, buyer representation doesn’t necessarily mean that I find the home that the client chooses to purchase. Finding the home is the easy part – why do you think it is so easy to get that information all over the internet? If the real question is “why am I paid my commission?” I would have to tell you that so much of my work is done behind the scenes.

The real work of a Realtor is not finding the property; the real work is investigation, negotiation and fiduciary responsibility to make sure that my clients are protected and making educated decisions. Further, my job is to make sure that I have written a contract that will give my client the best scenario with terms, conditions and pricing that work for their situation. Truly, it is not just the price. My job is to make sure that we craft the stage where my client will end up with the home that they want.

The real work is to make sure that all the moving parts in a transaction – the lender, seller, seller’s agent, appraiser, the inspectors, the escrow officer, the insurer, the city code enforcer, statewide advisories, homeowner association, buyer AND the surprises that ALWAYS come up – are all moving in the same direction towards the close of escrow.

Oh, and by the way, don’t forget that the Realtor doesn’t receive any payment for the orchestration until the very end.

Whether I or another Realtor find the home is really not the key point. However, I can understand how it appears that way. If the buyer still has that opinion once they have completed their first purchase, then I will have to congratulate them on hiring the right Realtor, because only an expert would have made it all look so easy.

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