Buyer Guardian Angel … Buyer’s Agent
- Arizona Real Estate Agency explains real estate “agency”
… the most important aspect of which is who is representing you as a “client” … if anyone. - Arizona Real Estate Brokers and Agents explains the respective rolls of the real estate professionals
The agent representing you as a buyer-client is obligated to work entirely in your best interest verses all parties … all sellers … all lenders, including the lender you choose … and possibly verses themselves … such as for “FSBO” properties, as discussed just below … truly as a Guardian Angel.
- Unless you direct otherwise, you should be informed of all properties being offered for sale and known to meet your criteria,
and offered the option to see each such home, irrespective of who the Listing Broker or builder is. - Listings of your agent’s broker should be given no more and no less consideration.
- If a FSBO property (For Sale By Owner) is discovered that might fit your criteria, you should be provided the option of seeing such properties as well.
If such is your choice home, your buyer agent needs to find a way “to make it work”.
These obligations are extensively taught and emphasized by the industry, and are well understood by all Realtors®.
Service Charges
In the majority of transactions, compensation to the buyer’s agent is paid to the agent at close of escrow appearing as a reduction in the net cash to the Seller
… the buyer pays nothing “out of pocket” to his/her agent in the vast majority of home purchase transactions.
The amount thus paid is determined by the compensation “offered” by the Listing Agent in the MLS listing.
Buyer-Broker Agreement
100% of sellers of MLS-listed properties have a “Listing Agreement” between themselves and the listing broker. Well under half of buyers have an “agreement” with their broker representative. This is due largely to the reluctance agents have to present such an agreement to a prospective buyer client anticipating a general resistance most people have to any sort of written “agreement”.
Plus, in presenting the Buyer-Broker Employment Agreement, agents dislike the time and stress to explain the rather complicated aspects of “agency” … as explained in documents linked at top here.
The one area on the Agreement that is worthy of discussion is Compensation. In the Buyer-Broker Employent Agreement … “The amount of compensation shall be _____, or the compensation Broker receives from seller or seller’s broker, whichever is greater.” (emphasis added)
For example, if the blank space is filled in with 3% and the buyer subsequently buys a FSBO home where the seller pays 2% commission, or a listed home where the commission is 2%, the buyer would pay his/her buyer agent 1% to make up the difference.
Even with zero ($0) entered on the blank space so the buyer is not obligated to pay any commission, this form would serve to establish the working relationship between the buyer and the buyer’s agent. As with all “agreements”, having it in written form could provide a better understanding by the parties.
The form also provides for a “Retainer Fee” … that is zero ($0) in near 100% even in the few cases where this Agreement is used.
In Summary
… with a written agreement or not, your Arizona Buyer Broker should …
- assure that you find your best home choice … new, or re-sale, or FSBO, as you prefer
- negotiate the lowest possible price and best terms
- assist you to find the best financing
- and then “baby” the escrow to a timely close
… to receive compensation likely paid entirely by the seller
For information, guidance, services, questions …
Give us a call! We’re here to help.
Your best Guardian Angel choice … The Neal Team – TNT
Call today! You’ll be really glad you did.
Other Arizona Home Buying Issues
