"What's A Buyer's Agent?  And What's It Going To Cost Me?"

What is a Buyer's Agent?

A buyer's agent is an agent that has been specifically contracted to represent the buyer's interests throughout the home purchasing process.

How do I know when a Realtor is MY Buyer's Agent?

An agent is only your Buyer's Agent if you have signed a "Buyer's Broker" agreement with them.

What's the Difference?

Any Realtor can help you find a home and advise you during the home-buying process. All Realtors are bound by law to deal with you fairly and ethically, but only your Buyer's Agent is obligated to solely represent your interests during the home-buying process. This is a fundamental difference. A realtor, who is a listing agent and thereby represents the seller, is legally obligated to represent the seller's interests, and they are fundamentally different than the buyer's interests, but they can - and will offer to - write up your offer on their listing.

How Is a Buyer's Agent Compensated?

Professional Realtors agree to split their listing commissions if a Buyer's Agent is involved in the transaction. Listing agents charge their sellers' a commission on the sale of their home. If a Buyer's Agent is involved then the two agents split the commission paid by the seller. Although paid through the seller's commission, your Buyer's Agent is obligated to you. You may have to make other arrangements to compensate your Buyer's Agent should you choose to buy a home that is not listed by a professional realtor. Please make sure you ask him/her about that before you sign a Buyer's Broker Agreement.

What Will my Buyer's Agent Do For Me?

Your Buyer's Agent will send you listings of homes that fit your home search criteria. Sometimes they will go see these homes with you, and sometimes they'll suggest open houses for you to go to on your own. In either case, they are still your Buyer's Agent, and you need to let the other agents that you meet at open houses know that you have a buyer's agent. (You might even ask your agent for some business cards that you can give the other agents as you visit.)

After you've decided to make an offer on a home, your Buyer's Agent will write up the offer for you, and present it to the listing agent and/or seller. Once you have a ratified contract your Buyer's Agent will help you with many of the arrangements necessary before going to settlement.