Buyer's Resource of the Poconos Realty -A Pennsylvania licensed real estate broker RB-060864-C, is a member of the National Association of REALTORSŽ

Choosing a Real Estate Agent When Buying a Home

ALWAYS CHOOSE A REALTORŽ

Only certain real estate agents meet the qualifications necessary to be a REALTORŽ. Some agents have licenses that allow them to sell real estate, but they are not committed to the higher standards of professional ethics and integrity upheld by REALTORS. There is always a risk in using an agent with lower standards--insist on a REALTORŽ.

The following information is provided as an introduction to general procedures offered by real estate companies, you should become familiar with the laws, requirements, and customary practices in the area of your upcoming real estate transaction, prior to buying or selling real estate.

ARE ALL REALTORS ALIKE?

No. There are four basic types of REALTORS: Seller Agents, Exclusive Buyer Agents (or Brokers), Dual Agents (including Non-Exclusive Buyer Agents), and Transaction Brokers. You will find variations of these basic types of real estate practice depending on the laws governing your desired area of purchase or sale.

SELLER AGENTS -- list property and represent the seller. Remember If you are buying a home and call the listing company, it is the legal obligation of the company's agents to get the highest price and best conditions for the seller. Any information given by a prospective homebuyer to the seller agent must be told to the sellers. This includes any reference to the buyer's financial and personal data, potentially increasing the cost of the home by thousands of dollars.

EXCLUSIVE BUYER AGENTS -- represent homebuyers--never sellers. These agents are required by law to get the best price and best terms for the homebuyer. All consumer advocates recommend that homebuyers take advantage of the benefits offered by Exclusive Buyer Agents, including:

	Professional NEGOTIATION of price and terms favorable to the buyer.
	CONFIDENTIALITY of the buyer's financial and personal information resulting in increased strength throughout the negotiating process.
	DISCLOSURE of all discovered weaknesses and strengths of the property.
	OBEDIENCE to all requests of the homebuyer. This agent works for the buyer and listens to the buyer's needs for finding the right home.
	100% LOYALTY to the homebuyer--providing guidance and counseling throughout the entire process.

Exclusive buyer agents are specialists in the home buying process. This higher level of professional service for buyers has resulted in an average of over 5% savings and greater satisfaction for homebuyers. Because these agents do not list property, they do not have company listings to try to sell to you first. Instead, all homes are available to homebuyers without bias, including For Sale By Owner, New Construction, and MLS (other Realtor listings) homes.

DUAL AGENTS

Dual agents are real estate agents whose company lists property, but act as buyer agents on those properties. Unfortunately for both buyers and sellers, dual agents are legal in most states. While dual agents attempt to justify this practice, consumer advocates warn NEVER to use a dual agent.In Pennsylvania the broker of a company that accepts listings may designate an agent(s) to be the sole advocate of a buyer against all others, in and outside of their company, to perform buyer agency services for a client. A Designated Agent may also provide services to sellers, as a sellers agent, in other transactions which can lead to possible issues of internal office conflict in representing the buyer's interests at all times. In a Designated Agency practice the Broker must still act as a Dual Agent to both buyer and seller in an in house transaction. The National Association of REALTORS wrote that the practice of dual agency is as dangerous as playing Russian Roulette.

If a real estate company lists property and represents the seller--you should question any attempted claim that their company can offer the undivided loyalty and service that an Exclusive Buyer Agency can provide to the home buyer.

TRANSACTION BROKERS

Transaction Brokers are also known as a facilitators, finders, and statutory agents. These are true non-agents because there is no liability for wrongdoing. This attempt by a growing number of real estate agents to avoid the responsibility owed to buyers and sellers is legal in a few states (including Pennsylvania, Florida, and Colorado). Services by transaction brokers are substantially reduced from those of true agents. You should proceed with caution if the Broker(s) acknowledges they are not responsible to either the buyer or the seller in your real estate transaction.

CHOOSING AN EXCLUSIVE BUYER BROKER

Steps to ensure the selection of a quality Exclusive Buyer Broker include:

Be sure the Exclusive Buyer Broker is a REALTORŽ whose company does not take listings.
Use only Exclusive Buyer Brokers who have access to For Sale By Owner, New Construction, and Realtor MLS Homes.
Membership in a national organization assures a higher standard of quality service (for example, Buyer's Resource, The Buyer's Agent, National Association of Exclusive Buyer Agents (NAEBA), etc.).
Insist upon signing an Exclusive Buyer Agency Agreement (or contract). This agreement assures that the real estate agent and company are committed to the buyer exclusively. Those companies who do not use this agreement are not able or willing to make a full commitment to you. At the signing of this agreement, many Exclusive Buyer Agents require a small retainer fee, which is usually refundable at closing. This retainer represents a mutual commitment of the buyer and agent.
Be sure that the Exclusive Buyer Agent uses a Purchase and Sale Contract that is "buyer friendly." (Most contracts are seller oriented.) Your Exclusive Buyer Agent will negotiate terms and conditions in the contract that offer greater protection to homebuyers.

BUYING A NEW HOME: SHOULD I USE AN EXCLUSIVE BUYER AGENT?

Yes. It is just as important to use a qualified Exclusive Buyer Agent REALTORŽ in purchasing a new home. Benefits include:

Knowledge and history of various developments, helping match the buyer with the right community.
Knowledge of builders' pricing strategies help buyers determine best negotiating strategy.
Knowledge of other builders of equal and greater quality help buyers get the best builder for the money.
Knowledge of builders' reputations regarding quality, follow- up and financial stability, help prevent problems after the sale.
In many cases, lower prices of other concessions are offered to buyers with buyer agents, as builders consider these agents as "multiple sources of buyers." Individual buyers buy only one home; buyer agents bring in many buyers.

Be sure, however, to use only Exclusive Buyer Agent Realtors who can help buyers with both new and existing homes. So-called new home specialists often do not have access to or knowledge of existing homes and have monetary relationships with builders.

SELLING YOUR HOME: CAN AN EXCLUSIVE BUYER AGENT HELP ME?

Yes. An Exclusive Buyer Agent only represents homebuyers and does not take listings. These agents, however, work with hundreds of listing agents. They know which ones will aggressively market your home and which ones only give a good listing presentation. The Buyer's Agent recommends that all sellers obtain the services of a listing company that will represent the sellers interests at all times. If you choose to sell your home without the services of a listing agency, the exclusive buyer agency may be another resource for you to distribute information to on your property, with the understanding that they will always be working for their client the buyer.

(Parts of this page of information are compiled from Smart Money, Money Magazine, The Wall Street Journal, and other consumer oriented publications.)

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