Monday, July 18, 2011

What is a buyer's broker?

In the typical real estate transaction, a home owner who wishes to sell will contact and employ the services of a real estate professional.  This person becomes the agent of the seller and markets the property for sale.  When you, the home buyer, call this agent and seek to purchase one of their listings, you have to remember that the agent isn't working for you.

This is where buyer's brokers come into the picture.  A  buyer's broker acts as the agent for the buyer.  It is this person's job to negotiate and work on behalf of the buyer to find the property that the buyer wants and at the lowest price possible.  The seller's agent is trying to negotiate to keep the price as high as possible for the seller.  The buyer's agent will be trying to negotiate the price down or seek other consideration to make the deal more attractive to the buyer.

So, how does using a buyer's agent help you? First, and most importantly, the services of the buyer's agent are not typically paid for by the buyer.  When the sale takes place, there is a commission check cut at the closing that comes from the seller's funds, NOT THE BUYER'S.  This commission is split between the seller's agent and the buyer's agent.  So, if you are the buyer, the seller has just paid for someone to work and negotiate on your behalf.  There aren't too many places where this dynamic occurs.  In fact, I can't think of any at this point.  If you are going to buy property, always seek representation.  If at all possible, seek an individual who provides buyer representation as a specialty. 

Feel free to contact me at 502-682-6767 or at  I provide buyer's representation on residential property.

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