THE BEGINNING OF BUYER AGENCY
The mid-1980's was a pivotal time in real estate. Before this time, ALL real estate agents represented THE SELLER. Even the agents who worked with buyers, and didn't know the sellers, were representing the sellers! When buyers realized they had no representation, law suits were filed for non-disclosure of the agency relationship with the seller. The litigation occurred here in Minneapolis, but impacted the way agency is disclosed to consumers across the nation. Agency representation for real estate buyers was born from this landmark decision.
Explanation of how an agent can represent a real estate client (Minnesota uses the form "Agency Relationships in Real Estate Transactions") now has to be disclosed BEFORE a contract for representation is signed. Because of this landmark case, both buyers and sellers can now make informed choices about how they want a real estate agent to represent them.
DID YOU KNOW:
- Companies listing homes on the Multiple Listing Service (MLS) agree to share a portion of their commission with the buyers' agent and company?
- Whether you have a buyer's agent or not, the purchase price includes the commission that would be paid to the buyer's agent?
- Buying a home without a buyer's agent will NOT reduce the amount of commission the seller has to pay or the amount paid for the house?
- The real estate agent hosting an open house (new construction OR existing homes) is working on behalf of the seller? That means the agent conducting the open house is LEGALLY committed to get the highest price FOR THE SELLER; negotiate the best terms FOR THE SELLER; obey all lawful instructions OF THE SELLER; be loyal TO THE SELLER; and use all his/her experience, training, and talent to BENEFIT THE SELLER! If you visit an open house without an agent on YOUR side, you may disclose information that benefits the seller's negotiation!
- Buyers who have agents representing them usually get better terms and conditions in the purchase than those who do not? The agent's experience and training help the buyer to know if price is commensurate with condition of the home and location; whether to ask for items to be included in the purchase; what typically is expected for possession date, payment of taxes, payment of assessments, inspection timing and requests, etc.
If you're a buyer, don't you want someone to work on YOUR behalf instead of the seller's? Once a contract for buyer's representation is signed, the buyer's real estate agent is legally committed to get the best price FOR YOU, THE BUYER; negotiate the best terms FOR YOU, THE BUYER; obey all lawful instructions OF YOU, THE BUYER; be loyal TO YOU, THE BUYER; and use all his/her experience, training, and talent to BENEFIT YOU, THE BUYER! A real estate agent on your side can protect you from mistakes, save you money, expedite the purchase of your home, and generally lessen the transaction stress. Since the purchase price of the home already includes a commission for the buyer's agent, why not hire a real estate agent for your side, too?