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What is a Buyer's Representation Agreement and Why You Need a Buyer's Agent

Writer's picture: Sara NaheedySara Naheedy


BUYER'S REPRESENTATION AGREEMENT:


By now you've probably heard about the significant changes happening in the world of residential real estate and how those changes will affect home buyers and sellers. One of the new requirements is that buyers must sign a written Buyer Representation Agreement before touring a home with an agent. This is a positive situation for both consumers and agents because it facilitates conversations to help homebuyers better understand the process and learn the right questions to ask agents. The agreement explains how your real estate agent will act as your dedicated professional guide, and outlines the agent's ethical and fiduciary duties to represent you to the best of their ability. The terms of the agreement are negotiated between the buyer and their agent. Together, the buyer and agent decide how long the representation lasts, and when and if to extend the agreement. The buyer representation agreement ensures that you and your agent are on the same page about the terms of your collaboration. It it meant to facilitate trust and efficiency in what is an extremely complicated process. The homebuying process is complex and the market is competitive. You will need a trusted advisor to guide you through this journey.


REASONS YOU NEED TO HIRE A BUYER'S AGENT:


  1. A standard residential purchase agreement is 17 pages, and that is just one type of form required for a California real estate transaction. Agents receive training and education about these forms, real estate law, and more from a variety of local, state and national trade associations.

  2. Educate you on the complete cost of homeownership. Your agent will discuss the big picture costs of homeownership, such as taxes, insurance, home maintenance, and possible homeowner association fees.

  3. Find homes that work for your needs. An agent's knowledge and expertise can give you new and different perspectives on a home's pros and cons in order to meet your specific needs.

  4. Know the market inside and out. A buyer's agent knows the local market and can direct you to homes that are within your budget. They may even know of similar neighborhoods that you had not otherwise considered.

  5. Look for red flags. A buyer's agent can spot issues you might not know to consider, such as painted-over water damage, uneven floors that may indicate foundation issues, or termite damage you may have overlooked.

  6. Help you make a competitive offer. A competitive offer is more than simply the amount of money you offer for a home. Sometimes a seller will respond to a rent-back clause, a longer or shorter escrow period, or an all-cash offer. Your buyer's agent will work with you to create the strongest possible offer and negotiate on your behalf with the listing agent to get you the best deal and put you in the home that you want.

  7. Negotiate on your behalf. Once the offer is accepted, there are several items that can be negotiated. One of the biggest roles your buyer's agent will serve is as your negotiator. For example, home repairs requests and credits, inspection costs, home warranty, and appliances are all items that can be negotiated by your agent.

  8. Protect your rights.

  9. Connect you to a network. Before and after you purchase a home, there are dozens of things to take care of, such as heating and cooling systems, plumbing, electricity, yard work and home repairs. Your buyer's agent will connect you with their network to ensure you hire trusted professionals.


If you are looking for help with what is typically the biggest purchase of your life, please contact us for representation of home buyers in the home buying process. We offer both flat fee representation and hourly fee representation.


2601 Main Street, Suite 1200

Irvine, CA 92614

(949) 400-4956

info@saranaheedylaw.com

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

© 2024 by Sara Naheedy Law

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Photography by Paris Ghassemian

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