Home buyers - thinking about a Move 2 North Georgia or maybe a second home in the cool North Georgia Mountains? Please take a minute and think about this...
As a licensed Realtor in the state of Georgia, I feel it is very important for home buyers to understand buyer representation and give serious consideration to entering into a Buyer's Agency Agreement with a trusted Realtor. Without buyer representation, the default is for the real estate professional to represent the seller (not the buyer) in all dealings with the buyer.
So what is buyer representation and why is it important for the buyer to be represented? I think when I address what buyer representation is, the reason why it is important will be evident.
Buyer representation means that the buyer hires a real estate professional to advocate and work solely on behalf of the buyer to obtain the best deal and terms. The real estate professional no longer represents the seller by default. He/she can assist the buyer in acquiring and interpreting information about a property, its condition and the seller's motivations. He/she can develop a negotiation strategy and assist the buyer in determining a reasonable offer. Buyer representation fosters greater loyalty and frees the real estate professional in a way that seller information can be disclosed to the buyer. A Buyer's Agency Agreement affords the buyer client level services as opposed to customer level services.
How does a "client" differ from that of a "customer"? Simply put, real estate professionals work FOR clients and WITH customers
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Breaking it down... (this list is meant to be used as a sampling and is not all inclusive). This list shows the contrast between buyer client/client level services compared to that of a buyer customer/customer level services.
If the buyer is a client | If the buyer is a customer |
Pay full attention to the buyer's needs | Maintain loyalty to the seller's needs |
Disclose all the agent knows about the sellers | Tell the seller all that is known about the buyer |
Keep all information about the buyer confidential | Keep all information about the seller confidential |
Find the best property possible | Get the best offer for the seller |
Get first opportunity to view new listings | View new listings after buyer clients |
Give advice with facts | Provide only material facts |
Compare competing properties to assist the buyer in making a realistic offer | Cannot help the buyer compare competing properties |
Attempt to solve problems to the buyer client's advantage and satisfaction | Attempt to solve problems to the seller client's advantage and satisfaction |
It is important to note that a real estate professional owes fiduciary duties to both a client and a customer. But the extent of duty owed to a client surpasses that owed to a customer as shown above.
As a home buyer, ask yourself these questions and then decide if you want buyer representation?
- Do you want to be told what the lowest price a seller will take?
- Do you want help with developing a negotiating strategy?
- Do you want to be told if the property is thought to be overpriced?
- Do you want to know if the current use of a property is in violation of zoning laws or deed restrictions?
- Do you want to be told of any counter offers made by the seller?
- Do you want assistance in making an objective comparison of competing properties?
- Do you want to know (if known) that the property has been the site of a homicide or suicide?
- Do you want advice on what clauses to include in an offer in order to protect your rights?
- Do you want to know how long a property has been on the market?
- Do you want assistance in determining what to offer based on comparables?
These questions are just a small sampling of what a buyer's representative can do for you. As a home buyer, you are making one of the most serious and probably most expensive purchases of your life, don't go it alone.
Donna Yates, Georgia Realtor primarily serving the North Georgia Blue Ridge Mountains located in Blue Ridge, Georgia. Donna is dedicated to the real estate profession full-time and is ready to help home buyers nationwide. Donna is an advocate for home buyers and firmly believes buyers need full representation.
Email: Donna@ellijay.com Call 706-633-0644 cell. Visit Donna's website to view great mountain properties: www.move2northgeorgia.net
Copyright: Donna Yates, Georgia Realtor, "Around the Mountains with Donna" May 8, 2008
Thank you to Cynthia Tilgham of Active Rain for her tips on how to change font size and color --- http://activerain.com/cjytilghman
Thank you to Tom Gillett, Real Estate Educator --- http://www.thomasgillett.com/about.html
I like the comparison chart! Very good distinctions. Thanks...
Yvette Smith
Williamsburg's Preferred Realtor®
This is just such important information for all buyers to understand before buying a home!
Dennis: Tom Gillett who I mentioned in the post has said many times, help those get what they want and you are sure to get what you want. Customer (well, client as the case may be, service is paramount.
Chris - I hope your percentages increase too and I feel sure they will because you obviously care about doing the best you can for your clients. My experience has been that when customers understand the difference between client and customer, they almost always want to become a client. And why not?! They have everything to gain.
Yvette: Thank you for commenting.
Carole: Thank you for commenting.
Keith and Robin: I think we owe it to the consumer to make sure they understand the value a Realtor can and does bring to the table. Providing client level services to the home buyer is a free benefit in most cases that any serious home buyer should want to have.
Diane: I agree. I think most buyers do want this benefit when they are told what it is and from that they can see how important it is. Thank you for your comment.
Donna, great post, great information and one of the things I noticed was great SEO. You tied it all togeather so nicely. That is one thing that I have been working on, it looks like you have ait down pat. Have a blessed week.
Bonnie
TheHomeInspectorsWife
Bonnie: I don't know about SEO but it is something that I constantly work on. It's nice to have someone tell me I might be getting the hang of it. Thank you for stopping by.