Let’s Buy a House!
When you’re ready to buy a house, whether you’re looking at a re-sell property or a new construction home, it’s imperative that you work with a Realtor. Having a Realtor on your side who knows the market and can negotiate on your behalf can save you thousands of dollars on the purchase of your new home. Your Realtor has important information and access to every home that is for sale, which includes many homes that are for sale, but not syndicated to real estate websites.
When you work with a Realtor you will be asked to sign a Buyers Exclusive Agency Contract and below is a review of that document.
Sections A – M
Section A states the purpose of your relationship with your Realtor…to find a new home! But most importantly it acknowledges that your Realtor will be acting in your best interest during the negotiations for your property, which stems from the National Association of Realtors Code of Ethics.
Section B identifies the basic area where you want to live.
Section C discusses the compensation that your Realtor will receive for her services, which may include a retainer fee and the commission rate. It also discusses the length of time that your Realtor is eligible to receive commission.
Section D explains Agency relationship versus Limited Agency relationship between the Buyer and the Realtor. When a client is working with a Realtor to find a new house, it is considered and agency relationship between the Realtor and the Buyer. If the Realtor is also the Listing Agent for the property the Buyer is considering, the Realtor is then working for both the Seller and the Buyer and this situation is called Limited Agency. When this situation occurs, the Realtor has certain obligation to protect privacy for both the Seller and Buyer.
Section E reminds the Buyer that the Realtor may also be working with other Buyers simultaneously.
Alexa, what is Section F? Popular home recording devices can put you at a negotiating disadvantage. Don’t discuss the terms of your potential offer inside the house!
Section G protects you and your Realtor against any Fair Housing violations.
Section H reminds Buyers that while you and I have a confidential relationship, the sellers and their agents may not give you that same respect unless we specifically ask for confidentiality.
Section I is where any other conditions may be written in to protect the Buyer.
Section J is the final acknowledgments for the contract.
Section K reminds you how to protect yourself from wire fraud.
Sections L – M are the final acknowledgements of the agreement.
Summary
In summary, this Buyers Exclusive Agency Contract does three things for the Buyer. One, it authorizes the Realtor to work on the Buyers behalf. Two, it establishes the fee for service. And, finally it gives the Buyers peace of mind knowing that they have a professional Realtor consulting with them as they begin their home-buying journey.
Congratulations! Working with a Realtor is one of the smartest decisions you can make after you decide you are ready to buy a house.
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