Buyer Brokerage. Is it for you?

Buyer Brokerage.  Is it for you?

Many of you may have heard the term “a buyer’s broker”, but just what does that mean, and how does it impact you when buying a home?

Let me begin by explaining the traditional way first.  When you enter a Realtor’s office, you should be asked to sign a disclosure form.  This explains to you exactly who the sales representative is working for.  It is generally the seller.  Any information you give to your agent that would help the seller decide if you are the right buyer for their house, should be relayed to the seller.  It is that agent’s job to get the highest possible price and best terms for the realtor’s client, who is the homeowner.  However, you are owed fair and honest treatment. 

If you decide to hire a buyer’s agent, you now become the client.  The Realtor is working in your best interest.  It is their job to get you the best possible price and terms.  Other benefits of the buyer’s broker would be finding more houses. Now they can search for all the For Sale by Owners for you.  They can also show you houses that have failed to sell, find you builders, and anything on Multiple Listing.  They can point out defects, environmental issues, what things might affect your resale value.  Buyer’s broker’s can even do a market evaluation on the house you intend to buy, to see how it holds up to other houses in the area.

But who pays the commission?  Again, traditionally, the seller pays the brokerage fee, which by the way, comes out of the mortgage you pay for.  But the commission can be paid by any one.  We could get the fee from the seller, or the cooperating brokerage, after all, they would have paid out a commission anyway! Or, you as the buyer could choose to pay the fee.

If you are choosing a buyer’s broker, make sure they have had the proper training in this area. However you decide, always remember to pick a reputable Realtor, one you have confidence in, and one you trust.  And have fun. That new house is just around the corner!

Dianne Scalza, CBR

Licensed Associate Broker

631-661-5100

800-626-7356