Buyer representation really started to gain acceptance in the real estate community in the early 1990’s. For those of you who might remember, we as real estate agents would put buyers in our cars, drive them around and show them homes, possibly take them to lunch then out the next day and show them more homes and so on. During this whole time the agent was representing the seller. The agent had never met the sellers of the homes they were showing these buyers, but yet those were the laws. The buyers had no idea and assumed that the agent represented their best interests.
Now the rules have changed. Buyers and sellers now sign a real estate form that says who the agent represents. It by no means is a commitment from the buyer or seller to work directly with that agent; it is only a means of “disclosure” to the buyer and seller.
Several buyers actually think they can save money by dealing directly with the listing agent, since the buyer and seller will only be working with one agent. Does that buyer realize the agent has a fiduciary duty to the seller and will not negotiate a deal in the best interests of the buyer? Nor can the agent discuss price or provide any recommendations, opinions or anything relevant to market value to the buyer.
Buyer representation is vitally important and should not be taken lightly by the buyer. Another example is the buyer who walks in a new home subdivision not realizing that the sales agent that talks with the buyer about their models, floor plans, etc are looking out for the best interests of the builder/seller.
As a buyer, always consider hiring a real estate professional and have the agent take you to the model homes on your first visit. Model home sales offices will not allow an agent to represent the buyer if the agent does not escort them on their first visit.
Real Estate Homes - Buyer Representation and What It Means
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