The term buyer’s representation refers to the service and protection offered by a buyer’s agent, particularly in assisting a buyer with submitting an offer and negotiating a contract. What does the representation of a real estate agent cost you as a buyer? Typically nothing because the buyer’s agent is paid by the seller. Sellers pay their agent (the listing agent) and that agent then shares or splits the commission with the buyer’s agent (the selling agent). If the seller does not have an agent and is a “for sale by owner” or FSBO, the buyer and their agent must determine how the agent will be paid. The options are that agents services are paid for by
- The buyer
- The for sale by owner agrees to pay
- The buyers chooses not consider for sale by owner properties
A buyer’s agent is your real estate advisor, protecting your best interest and working as your personal advocate. This is why consumer advocacy groups support buyer’s representation and encourage home buyers to use the protection and representation skills of a buyer’s agent. For any given property, all Kentucky real estate agents are required to disclose whom they represent prior to discussing any material information pertaining to an offer to purchase.
“What can a buyer’s agent do for me?”
- A buyer’s agent can prepare and discuss with you a Comparative Market Analysis (CMA) of the Lexington Kentucky neighborhood where you’ve found a house.
- They keep your bargaining and financial position confidential, between you and the listing agent, unless you direct them to share information.
- They pass on information that enhances your bargaining position.
- They promote and protect your best interest by pointing out any flaws they might see in the house or appliances.
- They draft and present a contract/offer in the way that best protects you and your interests.
They negotiate the best price and terms for you and presenting your offer to the seller of the house you want.
When appropriate, they point out reasons not to buy and ensure that can walk away from the transaction for appropriate reasons.
- They give you the trust, loyalty, and protection you deserve, after all buying a house is an very serious, very expensive investment.
For more information about buyer’s representation and finding an excellent buyer’s agent see Why Choose Us?