With the huge pickup in business for me this year, I’m coming into contact with many more homebuyers in various stages of thought about their move. Let me tell you, there continue to be a lot of misconceptions out there about real estate professionals and what they do. I’d like to address one constant issue today – the existence & role of a “buyer’s agent”.
When a homebuyer decides to start the process of looking for a property, they typically begin by surfing the internet. (I know this because I get lots of contacts from them at this early stage). At some point they are exposed to any number of real estate salespersons via their websites, MLS, company websites etc. It is at this point that the potential homebuyer needs to understand something up front; they will only get to work with one real estate professional by the time they are actively looking at homes. That active stage can come up fast, so the buyer should know right now that they’ll be forced to make a choice among possible candidates for their loyalty.
Why is this? Why can’t the buyer access the expertise and databases of many realtors? Because each one of those agents is hoping to be “the one” that the buyer eventually chooses. The concept of (intentionally or unintentionally) playing agents against each other won’t work for very long – one of the agents will ask for the buyer’s business and the honeymoon is over…and this is as it should be.
When the buyer reaches the active comparison and offer submission stage, he or she will want to have a buyer representative at their side, advising them, drafting documents & negotiating on their behalf. In PA the real estate license law provides for what’s called “buyer agency”, which simply means that consumers (that’s the buyer) actually hire via contract an agent represent them. I often use a “law & order” analogy in explaining the PA law to buyers; the representational responsibilities are similar to the way a lawyer represents his client – the need for client confidentiality, a continuous good-faith effort, etc.
So, if you’re a prospective homebuyer today, realize that it’s in your best interest to first interview realtors to be your buyer representative, and then hire one that you feel has the best service and expertise for your needs. Then, use him/her to access the MLS and interpret the data for you going forward. Also, you can pick the agent’s brain regarding areas, prices, condition and many of items you may not have expertise in. This will save you lots of time and wasted hours in front of a monitor staring at third-party home websites like Zillow, etc. Also, this will save real estate businessmen time and raise the competitive bar for us. Hooray!
If you have any questions about buying a home in Lancaster County, or how buyer agency works and the contract involved, I’d be happy to answer you at info@yourlancasterhome.com or 717-799-0851.
Next, I’m going to tackle seller agency in PA – and hopefully answer another misconception about realtors – that they’re all the same when it comes to listing your home! Stay tuned…