Buyers have a choice! Agency law allows the buyer to choose an Agent to represent them and their best interest in the real estate transaction.
However, one of the most common misconceptions that is shared by a large number of Buyers, as well as some real estate Brokers, especially in these rural areas, is that when working with a Real Estate Broker or Salesperson ("Agent"), that the Agent will “automatically” be representing you the Buyer. Unless this is specifically disclosed in writing, the Agent will NOT be representing you, but will be representing the Seller only.
For example, if you call Agent A (without signing a Buyer’s Representation Agreement with another brokerage company), to go look at a property listed by Agent A's company, then Agent A will be legally representing the Seller, NOT YOU as the Buyer. You will be "unrepresented" and "on your own". Any negotiating strategies or information you have disclosed to Agent A must be revealed to the Seller, no matter what you instructed Agent A to tell the Seller. Although this is perfectly legal, and is simply more convenient for all parties when only one Agent is involved, you as the Buyer, in this situation, simply do not have anyone representing you and looking out for your best interests.
This is why it is imperative that you enter into a Buyer’s Representation Agreement with a Real Estate Salesperson or Broker ("Agent") of your own choice BEFORE ever calling an Agent at another Brokerage firm to look at a property they have listed for sale.
You do not have to use a Salesperson or Broker with the brokerage company who has the property listed for sale (has their name on the yard sign). If you do, you will likely not have anyone representing your best interests.
I would recommend that hire who you want to represent you, then sign a Buyer's Representation Agreement with that Agent/Brokerage Firm, then get pre-qualified for a loan, and then ask your new Buyer Agent to start making appointments to see potential properties in your price range. This all needs to be done BEFORE calling numbers on signs and looking at property. Looking at properties without being prepared is a waste of your time, as well as the Seller's and Agents representing the Sellers.
As far as brokerage fees (commissions) go, most of the time the Seller pays the commission not the Buyer, because the Seller had already agreed to pay the commission to their Listing Broker when they listed the property. Most Listing Broker's "cooperate" and share the commissions with Other Broker's, thereby not costing the Seller or Buyer any additional brokerage fees.
We are here to help and can represent your interests as the buyer when you get ready to look at a property listed by another brokerage firm or when you get ready to look at property that is advertised for sale by owner (FSBO). We will assist and represent you if you wish to purchase from a FSBO to help you avoid a legal nightmare with a FSBO owner who may not know much about real estate transactions or real estate laws. If an owner (FSBO) is not willing to work with a Agent or wants to do all of their own paper work, or tries to avoid attorneys or Title Companies, be forewarned, they may be trying to hide something from you!
And remember when you are buying property listed by Chad Holland Real Estate, we are representing the Seller, not you as the Buyer. So if you want another Agent to represent you, hire them BEFORE you contact us to view one of our listings.
I know this is complicated, so if you have any questions, please feel free to call or email me. I cannot give legal advice so you should contact an attorney of your choice for any legal advice regarding the agency relationship.
Chad Holland
Broker/Owner
chad@chadhollandrealestate.com
806-205-0497
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