Thursday, January 20, 2011
First Time Homebuyer's Word of the Day is Buyer's Agent
The average home buyer only buys a home once every eight years. That said, even a repeat home buyer can forget some of the simple terms used in real estate on a daily basis. It can be hard to remember whether the earnest money or the money escrowed is a down payment and (if it is, on what?) Often buyers are easily confused by similar sounding terms like easement and encroachment as they both deal with property lines and usage but what do they really mean?
Whether you are a novice, first time buyer or someone who hasn’t purchased a home for several years, sometimes a refresher on real estate terms can be very helpful. I often notice buyers (and sellers) with a glazed look on their face when certain terms come up so I thought an online real estate glossary would be helpful. The real estate term for today is:
Buyer’s Agent An individual contracted by the buyers to represent them in the purchase of their home.
When buying a house, the home is listed by a broker or company. The REALTOR® that lists the home is the listing agent for the home and is under contract with fiduciary duties to the seller. When a buyer calls on a sign or enters an open house, the information they provide is shared with the seller because the listing agent is required to disclose all information to their client.
A buyer can have their own representation when purchasing a home. They do not have to work with the listing agent. In fact, many buyers prefer to have their own agent working on their behalf. If a buyer signs a contract to work exclusively with a specific REALTOR® that agent will work on behalf of the buyer to get the best deal while keeping all private information confidential. A buyer’s agent can show their clients any listed home and it doesn’t cost anything to hire your own agent because the fee is paid for by the seller of the home with a shared commission.