by Kathe Barge | Feb 15, 2018 | Blog, Buyers, Contracts, Inspections, Market Trends, Pittsburgh
We’ve been watching realtor.com and calling listing agents about new listings. Agents keep asking me if I have a buyer’s agent. Why would I want one?
It ‘s a good idea to recognize exactly what a buyer’s agent is to you – essentially an almost free invaluable resource to you in the buying process. You might think you will save money if you don’t have an agent that needs to be paid, but in reality that’s not how it works. The sellers have signed a listing agreement obligating them to pay a commission to the listing brokerage house of an agreed percentage and that percentage does not get adjusted if a buyer does not have an agent. So there is simply no advantage to not doing your research and choosing your own advocate before you begin the buying process.
In a recent study done by the National Association of Realtors, the #1 benefit all buyers put forth for having a buyer’s agent? A buyer’s agent helps her buyer understand the process of buying a home (74% of millennials found this to be true). Buying a home is a significantly more complex process than you might imagine, and if you have a well-trained agent, she should make it look simple. However, if you don’t buy and sell real estate everyday, there are many traps for the unwary.
The #2 ranked benefit of a buyer’s agent? A buyer’s agent points out unnoticed property faults or failures. A full-time agent is in and out of homes on a daily basis and after years of experience has developed a fine-tuned ability to pick up issues that most buyers would never notice, and will hopefully be able to suggest proposed solutions as well. This is no substitute for a home inspection, of course. Third on the list of benefits? The buyer’s agent negotiated better sales contract terms than the buyers could have negotiated on their own. Again, years of full-time experience coupled with a dedication to staying educated in the profession should hone an agent’s ability to give you excellent negotiation advice.
The #4 ranked benefit? Buyers reported that their buyers’ agents improved their knowledge of search areas. This is particularly helpful when you are looking to move to an area you are not very familiar with. Finally, the 5th ranked benefit of a buyer’s agent is that she can connect you to a better (and hopefully more reputable) list of service providers than you might have access to on your own. All of these benefits can be yours without the fee of the commission – all a buyer pays is the small “broker fee” (which is charged to both buyer and seller) of approximately $325! This is a small price to pay for a long list of benefits and expert advice on what may be your largest investment! My question is, why wouldn’t you want one?
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by Kathe Barge | Oct 6, 2016 | Blog, Buyers, Inspections, Listings, Market Trends, Marketing, Pittsburgh, Real Estate, Sellers, Sewickley, Sewickley Herald
Dear Kathe,
We have our home listed with another agent and are unhappy with the service we are receiving. We can’t help but wonder what process we should have gone through to find the right agent. Any ideas?
When choosing a Realtor, it’s important to do more research than asking a colleague, friend or service provider who they would recommend. I often help my clients find an agent in the new city they are moving to, and I start online.
First, I look for agents who do a lot of business in the area my client is moving to. How many listings does the agent have? I look at her sold listings on Zillow and see how many she has sold, both in the area and in the price range my clients will be buying into to make sure she has the experience they will need.
I then look at her individual website for her certifications and qualifications. These credentials require extensive commitment to training by the agent, and training means the agent is best equipped to achieve the very best result for you. Much of this training requires years of dedication to learning and excellence. All agents are not brokers, for example. An Associate Broker’s license takes a minimum of three years commitment to additional learning and hands on experience. If you are buying or selling a Signature home, there is an even higher level of training available to an agents such as Distinctive Homes Specialist. Christie’s Great Estates Specialist. These programs add yet another level of skill and expertise to an agent’s repertoire.
I like to say “a monkey can stick a sign in your yard.” It takes years of training and experience though to sell real estate while making it look smooth and easy. By earning credentials, we learn how to price optimally, how to market strategically, how to use the latest technology for your benefit, the complex ins and outs of our lengthy Agreement of Sale (the intricacies of which are just waiting to ensnare the inexperienced), how to negotiate for success, how to navigate the rough seas of inspections and how to close on time. Every one of these skills inures directly to your benefit and your bottom line.
I also look to see how developed her website is (is it more than a simple blurb) and how many reviews/ quality of reviews she has on Zillow. This gives a sense of how committed the agent is to the business.
Finally, I interview the prospective agents to determine marketing plans, detailed knowledge of the area and their personal market statistics. So take the time – get to know our credentials – and make an educated decision when choosing your next real estate agent.
by Kathe Barge | Jun 6, 2013 | Blog, Buyers, Contracts, Real Estate, Sellers, Sellers-Contracts, Sewickley Herald
Realtors are commonly called “agents,” but why? Real estate is practice under the “law of agency,” which means that one party, the “agent,” represents the interest of another, “the principal.” How does this really apply to you?
If you are a seller, you enter an “agency relationship” with the agent you choose to be your real estate advocate at the time you sign your listing agreement. At that point, the agent you chose must act on your behalf, with your best interests in mind, to find a buyer. And so does every other agent out there. In Pennsylvania, buyer agency exists in written form only, so until a buyer actually signs a buyer agency agreement with a broker, all agents represent the seller’s interests. Yes, buyers must be treated with honesty and fairness, but this does not mean they are represented. The seller’s interests must always come first.
So what if you are a buyer? This is probably sounding less than favorable right now. All the sign or ad calls you have made – the open houses you have attended – the properties you may have screened without officially having your own buyer’s agent – the agents you were dealing with all represented the sellers and had a duty to put the sellers’ interests first. That is great when you are the seller, but as real estate transactions have become more complex, buyers need representation too.
And so evolved buyer agency agreements in the state of Pennsylvania. Buyers now have the right to demand an agency relationship where their interests must be put first by the agent. To have this, buyers must sign a written agreement where they agree to work with only one agent and whereby the agent is bound to put that buyer’s interests first. With a written buyer agency agreement in place, buyers know that an agent is representing their interests and must fulfill the obligation to faithfully serve them.
If you are a seller who has done your research, chosen the agent best qualified to advocate for your interests and have signed a listing agreement, you have representation. If you are a buyer, you should do your due diligence – research agent qualifications – seek references – and then sign a buyer agency agreement. Know who is representing you, and don’t leave home without them!
