The spring house-hunting season continues to flourish, and with it, the hopes of many prospective home buyers. If the home of your dreams is being sold “by owner,” rather than through a real estate company, consider lining up a buyer’s agent to represent your interests. Many sellers are willing to pay a buyer’s agent a portion of what they would otherwise pay for a real estate commission. Why do you need representation as a home buyer? Because real estate transactions are often both complex and emotional. It’s extremely helpful to have a professional, objective third party negotiating on your behalf.
Ohio Law
Since Ohio law changed in 1996 to include buyer’s agency, home buyers have been eligible to be represented by a licensed real estate professional – an opportunity previously reserved for sellers. Because the seller was perceived to be paying the real estate commission, only the seller was represented in the transaction. Most prospective buyers were completely unaware that the person they thought of as “their” agent was actually working as a sub-agent for the seller. And was the seller alone paying the commission? Without buyers, nothing sells. The conventional wisdom pivoted, and people began to see the commission as being paid from the proceeds of the transaction, negotiated between both buyer and seller.
Relationship
The advent of buyer agency has clarified relationships and boundaries, so that the person working with you is also, most often, working for you. The state requires that prospective home buyers, and the real estate professionals with whom they work, complete a “Disclosure of Agency Relationship” form early in the relationship. The form is intended to help everyone in a property transaction understand who’s working with whom, and what the agency relationships will be if you purchase a home with the assistance of a specific agent and company.
Responsibilities
Your buyer’s agent will help you craft a realistic offer, and negotiate (sometimes vigorously!) with the seller and his or her agent. This can be especially important in a “seller’s market,” where there are more buyers than available homes. If you’ve ever experienced a “multiple offer” on a desirable property, you understand the importance of being represented by a cool-headed professional with whom you’ve forged a trusting relationship.
Contact the Karen Eagle Group with any questions about working with a buyer’s agent.