What You Should Know…
It is extremely important you, the Buyer, understand that in order for me to show homes to you we will enter into a “Buyers Representative Agreement” for a mutually agreed upon period of time and that I will be your exclusive Realtor® should you hire me.
What Is Representation?
Representation means that you have someone in your corner, working for you, in your best interests, negotiating the best price and conditions on your behalf. Your agent is working hard for you when you are together viewing homes and when you are not together by networking with other agents and home sellers on your behalf.
What Does This Mean To You…
This means that you have representation whether I am with you or not with you. In other words, if you call or visit a home for sale it is your responsibility to let the Seller know you are represented upon your first contact with the Seller.
What Does It Cost?
99% of the time the Seller pays the Realtor® commission, usually 3%. There are three Seller types:
1. Multiple Listing Service (MLS
2. For Sale By Owner (FSBO)
3. New Construction (national and independent)
MLS homes – Seller ALWAYS pay the Realtor â commission. Occasionally, the Selling agent posts a commission reduction (below the standard 3%). If the Buyer Agent Representation Agreement states that both parties agree on 3%, then the Buyer will then be responsible for the remainder. Buyer may elect not to be shown homes quoting a reduced commission rate.
FSBO – Sellers, on the most part welcome Realtorsâ and pay 3% commission. You must understand that these Sellers have priced the home accordingly. And those Sellers who will not pay have not built the fee in. Therefore it is understandable that the Buyer will have to add this fee to their offer. It’s really very basic. The home will always be priced with the fee in mind – with or without.
New Construction – Most builders have the price offered with the fee built in but be very careful upon approaching a builder that he/she knows that you ARE represented by a Realtor â . This is especially true with the small independent builders. However, the major national builders will have sales people that will be paid the bonus fee your Realtor® normally earns if you fail to inform them of this important detail. So, don’t get caught without Representation because the sales staff represents the builder ONLY. |