interest of anyone purchasing real estate for a couple different reasons. The first is and probably the most important reason is confidentiality. There are many small bits of information you may find your self sharing with an agent so they can help you find the right home. Some of those items include; how much you are qualified to purchase for, how much you are willing to spend, how soon you need to move in, how much money you make, what line of work you are in and much more. These may seem like harmless pieces of information but look at it from the point of view of the seller. This information will tell the seller how strong they need to deal with you. The more confident the seller is in his position the stronger he/she will be on price. This could cost you thousands of dollars when negotiating. By signing a broker representation agreement you will now have the confidentiality of that agent. They are now obligated to keep anything you tell them under wraps. With out the agreement the agent showing you around is actually supposed to divulge information if asked by the seller. The next big reason to sign a representation agreement is loyalty. An agent is not obligated to you unless they are under contract with you. Let's say you have a desire to purchase a 3 bed 2 bath home and your budget is 100K. While looking through the listings in the market the agent finds the perfect 3 bed 2 bath home for a low 80k and he/she has another client looking for the same type of home. That agent is obligated to give the information to his 'client' first and not you the 'customer'. If you only had the contract with that agent he/she would be obligated to give both customers fair notice of the great deal. Finally you want as much information and assistance with making an offer to help you save money on your transaction. If you don't have a representation agreement that agent is not able to help you come up with a favorable offer. Again this situation could cost you thousands. Don't be afraid of signing a buyer/broker representation agreement, but if you don't understand the language have a real estate attorney look it over for you. < Back Next> |
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