Buyer’s agency agreements are legal documents stating that the buyer will work with the agent to buy a home. It typically includes a compensation component as well as other obligations. Glenn Phillips, CEO of Beach Homes Realty, explains why these are advantageous to those buying a home.
- More Than Opening Doors: Buying a lake home can be a lengthy process, so you don’t want to waste time looking at homes that don’t meet your criteria. A buyer’s agent will go through your criteria, understand your wants and needs, and suggest properties that best fit your criteria.
- Fiduciary Duty: Buyer’s agency agreements create a fiduciary responsibility for the buyer to represent your best interests. In some states, if there is no agreement, then the buyer’s agent is a sub-agent to the listing agent by default. Without the agreement, the buyer’s agent’s fiduciary responsibility is to the other party, not you.
- Transparency of Commission: Buyer’s agency agreements work out how much the agent will be paid in commission and how. Having this documentation in advance reduces confusion about how money flows at the closing table.
- Scope is Adjustable: With a buyer’s agency agreement, you can define how long you will work with the agent. It can be as short as a week or as long as a few months. Longer agreements mean that the agent can spend more time researching and finding houses that fit your criteria.
- Do Your Homework: Some people are hesitant to sign these agreements because they don’t know the agent well. To solve this, you should ask them questions and get to know them; they should be able to answer your questions. You should also do your homework by researching them online and asking people who have worked with the agent about them.
Buyer’s agency agreements are a great way to help you navigate the home-buying process with more ease. Buyer’s agents can help you find a home that meets your needs in a shorter time frame. Visit beach-homes.com to find expert agents who will help you with the buying process.