Do I Need An Accredited Buyer Representative?
Buying a home is probably the most important purchase you'll ever
make. Traditionally, all residential real estate agents
represented the home seller. That was true of the "listing
agent" who marketed the home for sale, as well as the agent who
found the buyer. That agent - who helped the buyer find the right
home - actually worked for the seller as a "subagent" of the
listing agent. Under that traditional system, all agents were
legally bound to represent the seller and the buyer had NO
representation!
Buyers Now Have A Choice.
Buyers no longer need to represent themselves during the home
search and purchase while all agents legally represent the
seller. Smart home buyers today can receive undivided
confidential representation by choosing an Accredited Buyer
Representative. In fact, 71% of home buyers surveyed in a recent
Gallop Poll for the National Association of Realtors said they
would use a buyer's agent next time they purchased. Now you,
like the seller, can have someone on your side looking after your
best interests.
How Can An Accredited Buyer Representative Help Me?
A buyer's agent owes the following duties to their home buyer:
- Loyalty - Disclosure
- Diligence - Accounting
- Confidentiality - Reasonable Care
- Obedience
These responsibilities are defined by Arizona state law, the
Realtors Code of Ethics, and general principles of agency law.
Who Needs An Accredited Buyer Representative?
To ensure you're buying smartly, you need a buyer's agent. If
you're a first-time buyer, relocating or unfamiliar with the
local real estate market, or buying for investment and need
negotiating help you'll be best served by a buyer's agent who
puts your interests first.
Can A Seller's Agent Or Subagent Truly Help Me Buy?
Without a buyer's agent, you're legally on your own. The
seller's agent or subagent is, in fact, working for the seller
and is the seller's legal representative. True, a seller's agent
or subagent can offer buyers some services, including an
explanation of available financing, calculation of costs, and
presentation of your offer.
However, what a seller's agent cannot do is disclose to the buyer information not in the best interest of the seller, e.g., an opinion of the home's real value or what price and terms the seller would accept.
By effect of law, the seller's agent or subagent must negotiate on the seller's behalf and may not withhold information that could strengthen the seller's bargaining position. That means you, as a buyer, must not disclose to the seller's agent or subagent any information, financial or personal, that could possibly be used against you.
How Does One Become An Accredited Buyer Representative?
The Accredited Buyer Representative (ABR) professional designation is acheived through a process established by the National Association Of Realtors. This process includes advanced education, testing, and submittal of evidence in acting as an unaccredited buyer’s agent in multiple transactions. Furthermore, designees must be sponsered by current ABR professionals to vouch for their abilities, ethics and professionalism. Fewer than 1 in 500 real estate agents have earned the ABR professional designation.
What Will An Accredited Buyer Representative Cost Me?
The right question may be, "What will it cost me if I don't use an
Accredited Buyer Representative?" Purchasing a home without representation is
possibly the biggest financial risk one can make.
A buyer's agent can guide you step by step in the process to avoid mistakes. Of course, failure to discover the actual value of the property or defects in the property can be very costly mistakes. With a buyer's agent you can freely ask for advice, and I act proactively to discover foreseeable problems.
Who Pays the Buyer's Agent Fee?
I do NOT charge a fee to my buying clients for my services as an Accredited Buyer Representative. My fee is paid from the seller’s commission. Now, even though my fee is paid by the seller, the seller is informed in writing that I represent, exclusively, the interests of my buying client. That, I, in no way owe any duties to the seller. As a result of my ABR status, my buying clients enjoy the security of knowing that they have highly qualified, professional representation working for them, instead of the seller.