ROLE
OF A BUYER’S AGENT
There are two choices: Selling Agent .. or .. Buyers Agent.
So, why should you choose a Buyers Agent over a selling agent?
If you are working with a selling agent, you have NO CONTRACT, and
you ARE NOT THE PRINCIPAL. The Seller is the PRINCIPAL…meaning
the selling agent is an Owner’s Agent. They must treat all
parties fairly; show you properties of interest to you, telll you
about potential property defects, suggest when you should consult
a professional, and draft the purchase contract “a s y o u
t e l l t h e m
t o do.”
HOWEVER, when you work with a Buyers Agent,
you and the agent sign a WB-36 Exclusive Buyer Agency Agreement
that includes a “Disclosure of Real Estate Agency”. Once again
this disclosure lists the fact that all parties are to be treated
fairly, the duties that all agents owe to all parties, and the duties
that are owed to the “PRINCIPAL” .. or .. “CLIENT” … but this form
states that YOU are the PRINCIPAL/CLIENT. That means we concentrate
on you and we help you to get the best possible price, negotiate
for the most beneficial contract terms (often getting more concessions
from the seller than you normally would expect to receive), and
assist you with whatever you need throughout the entire transactions.
We owe you a HIGHER LEVEL of agent-client fiduciary duties. To mention
a few:
1. LOYALTY: We must loyally represent
you while avoiding any conflicts of interest, and putting your best
interests ahead the interests of any other party.
2. DISCLOSURE: We are obligated
to make a full, fair … and timely .. disclosure to you of all known
facts that are material to the transaction (unless excluded by law).
A Material fact is anything that a reasonable person might feel
is important to them in choosing a course of action.
FOR INSTANCE:
A) Whether or not there are any other
offers
B) Why the seller is selling, as long
as the seller has not stated this information is not confidential
C) Pointing out defects that are found
during our tour of the property or through other means such as “City
work orders against the building”, or area changes that are about
to take place (if they are known to the public).
3. OBEDIENCE: We work for the
best interest of the buyer, but must also know how to work with
the listing agent to have a win-win situation … in other words,
acting in such a manner that the seller agrees to sell and you buy
the property you want.
A) It is not in your best interest to
have an agent who acts in an adversarial manner. Tension,
anger, unreasonable demands do not help you, the buyer.
4. ONLY A BUYERS AGENT CAN:
A) Give a negative opinion or critique
of a seller’s property beyond disclosing defects.
B) Recommend or suggest an offering
price – or give you an opinion about whether a particular ouse is
over-priced or under-priced. (A seller agent can only say:
Make your best offer, the seller thinks the property is worth what
he/she is asking)
C) We can structure an offer and draft
offer provisions with your best interests in mind.
D) We can recommend and assist you with
negotation strategies for the best price and terms.
E) We can also disclose ALL INFORMANTION
AND RESEARCH about a property’s history and any liens against the
property so the buyer can make an informed decision.
F) The level of ADDITIONAL INVESTIGATION
AND RESEARCH varies from agent to agent. SO, CHOOSE THE AGENT THAT WILL GO THE EXTRA
MILE …. I.E. …. “REALTY
RESULTS”, DONNA BELL AND HER “RESULTS TEAM”.
G) We can give advice within the scope
of oru expertise as a licensed real estate agent.
Agents
are permitted under Wisconsin Law to conduct what is termed:
MULTIPLE REPRESENTATION. We DO NOT do multiple representation.
This means that we are working for both the seller and the buyer.
We do not feel that an agent can represent each party effectively,
and it is impossible toprovide full client-level servies and complete
loyalty to both parties. In multiple representation we become
MIDDLEMEN in the negotiations, draft contracts to accomplish the
intent of the parties and present contract proposals objectively.
(NOTE: THIS CAN ONLY BE DONE IF BOTH PARTIES AGREE TO IT)
Thus:
We repesent the sellers when you are interested in our in a listed
property … and will treat you fairly and honestly and work toward
a win-win situation for both parties.
You
will see that we are paid a “FINDERS FEE” … which is similar to
a commission. Buyer can choose to pay this directly to us;
however, we normally negotiate with the seller to pay the fee as
part of the offer.
SO,
NO MATTER WHICH YOU CHOOSE, you will be in good hands … but BUYER
AGENCY/REPRESENTATION is the preferred way to buy. |