Advantages of Buyer Agency
The level of service provided to a buyer-client vs. a buyer-customer.A) During the qualification process.
Buyer-client
Buyer-customer
Confidentiality: Under buyer agency, the buyer can feel secure to divulge information without fear of harming their negotiating position.
If the buyer is a customer, all information gained about that buyer will be shared with the seller to enhance the negotiating position of the seller.
Buyer’s needs: Under buyer agency, a sales representative is obligated to pay full attention to all of the buyer’s needs. This can include, but is not limited to, financial, timing, motivation, familial, etc. This representation will come without an obligation to match the buyer to a seller-client’s property.
If the buyer is a customer, then the sale representative is not obligated to satisfy any particular needs other than dealing fairly, honestly and with integrity with the buyer-customer.
Buyer-client
Buyer-customer
Confidentiality: Under buyer agency, the buyer can feel secure to divulge information without fear of harming their negotiating position.
If the buyer is a customer, all information gained about that buyer will be shared with the seller to enhance the negotiating position of the seller.
Buyer’s needs: Under buyer agency, a sales representative is obligated to pay full attention to all of the buyer’s needs. This can include, but is not limited to, financial, timing, motivation, familial, etc. This representation will come without an obligation to match the buyer to a seller-client’s property.
If the buyer is a customer, then the sale representative is not obligated to satisfy any particular needs other than dealing fairly, honestly and with integrity with the buyer-customer.
B) During the home selection process.
Buyer-clientBuyer-customer
Full Access: Under buyer agency, it is the responsibility of the sales representative to ensure that the buyer has access to the entire market. This includes private sales, expired listings, properties listed exclusively etc.
As a buyer-customer, the sales representative is acting as a sub-agent and has no such obligation to the buyer.
First opportunity: Under buyer agency, a buyer-client should know that he/she will have first access to any new opportunity that comes up. Be it via MLS, or any other means at his broker’s disposal.
A buyer-customer may have access to all potential properties, but only after the buyer-client has been given first opportunity, and not if it conflicts with the buyer-client’s desire for a property.
Buyer-clientBuyer-customer
Full Access: Under buyer agency, it is the responsibility of the sales representative to ensure that the buyer has access to the entire market. This includes private sales, expired listings, properties listed exclusively etc.
As a buyer-customer, the sales representative is acting as a sub-agent and has no such obligation to the buyer.
First opportunity: Under buyer agency, a buyer-client should know that he/she will have first access to any new opportunity that comes up. Be it via MLS, or any other means at his broker’s disposal.
A buyer-customer may have access to all potential properties, but only after the buyer-client has been given first opportunity, and not if it conflicts with the buyer-client’s desire for a property.
C) During the home showing process.
Buyer-clientBuyer-customer
Educating the buyer: Under buyer agency, the sales representative is obligated to assist the buyer in making an objective comparison of all competing properties, comprehensive enough for the buyer to make an informed decision as to the value of the property in question, and to make an offer accordingly.
Acting as a sub-agent, it is the obligation of the sales representative to present comparable facts that protect and enhance the value of the property in question.
Buyer-clientBuyer-customer
Educating the buyer: Under buyer agency, the sales representative is obligated to assist the buyer in making an objective comparison of all competing properties, comprehensive enough for the buyer to make an informed decision as to the value of the property in question, and to make an offer accordingly.
Acting as a sub-agent, it is the obligation of the sales representative to present comparable facts that protect and enhance the value of the property in question.
D) During the negotiating process.
Buyer-clientBuyer-customer
Price: Under buyer agency, the sales representative is obligated to present all sales statistics in order for the buyer to make the most informed pricing decision, irrespective of the seller’s asking price.
Provide price information to the buyer that supports seller’s listing price.
Clauses: Under buyer agency, the sales representative is obligated to provide counseling on protective clauses for the buyer. – Some examples may include, but are not limited to financing and the time needed to get financing or an appropriate home inspection clause.
Negotiate clauses that are in the best interest of the seller, which may include, but are not limited to closing dates, chattels, or a condition on the seller being able to purchase another home.
Financing: Under buyer agency, the sales representative is obligated to assist the buyer in finding the most suitable, or best financing available for the buyer. This may include such details as rate amortization, terms (institution), Vendor take backs or any one of many scenarios available to the buyer.
Under sub-agency, the sales representative is obligated to negotiate the best financing clause in the interest of the seller. This may include, but is not limited to 1) The time it takes the buyer to get financing, 2) Removing the financing condition from the offer, 3) Negotiating a VTB in the best interest of the seller.
Negotiating: Under buyer agency, the sales representative is obligated to provide negotiating strategies and techniques that are in the best interest of the buyer.
Under sub-agency, the sales representative is obligated to provide the seller with strategies and techniques that are in the best interest of the seller.
Must share all known details of previous unsuccessful offers, or any other information that strengthens the buyer’s negotiating position.
Must share knowledge of previous negotiations the buyer has been in, enhancing the negotiating position of the seller.
Knowledge of any personal information about the seller must be shared with the buyer, including but not limited to the price seller is willing to accept, a price that has already been accepted or rejected, as the case may be, and the sellers’ motivation.
Must share information about the buyer, which may include but is not limited to: financial information and ability and/or willingness to pay more, motivation, and ability and/or willingness to change closing date.
Buyer-clientBuyer-customer
Price: Under buyer agency, the sales representative is obligated to present all sales statistics in order for the buyer to make the most informed pricing decision, irrespective of the seller’s asking price.
Provide price information to the buyer that supports seller’s listing price.
Clauses: Under buyer agency, the sales representative is obligated to provide counseling on protective clauses for the buyer. – Some examples may include, but are not limited to financing and the time needed to get financing or an appropriate home inspection clause.
Negotiate clauses that are in the best interest of the seller, which may include, but are not limited to closing dates, chattels, or a condition on the seller being able to purchase another home.
Financing: Under buyer agency, the sales representative is obligated to assist the buyer in finding the most suitable, or best financing available for the buyer. This may include such details as rate amortization, terms (institution), Vendor take backs or any one of many scenarios available to the buyer.
Under sub-agency, the sales representative is obligated to negotiate the best financing clause in the interest of the seller. This may include, but is not limited to 1) The time it takes the buyer to get financing, 2) Removing the financing condition from the offer, 3) Negotiating a VTB in the best interest of the seller.
Negotiating: Under buyer agency, the sales representative is obligated to provide negotiating strategies and techniques that are in the best interest of the buyer.
Under sub-agency, the sales representative is obligated to provide the seller with strategies and techniques that are in the best interest of the seller.
Must share all known details of previous unsuccessful offers, or any other information that strengthens the buyer’s negotiating position.
Must share knowledge of previous negotiations the buyer has been in, enhancing the negotiating position of the seller.
Knowledge of any personal information about the seller must be shared with the buyer, including but not limited to the price seller is willing to accept, a price that has already been accepted or rejected, as the case may be, and the sellers’ motivation.
Must share information about the buyer, which may include but is not limited to: financial information and ability and/or willingness to pay more, motivation, and ability and/or willingness to change closing date.
E) Before Closing
Buyer-clientBuyer-customer
Follow-up: Under buyer agency, the sales representative is obligated to solve any problems to the buyer’s satisfaction & remove all conditions at the buyer’s request.
Any problems that are to be solved must be done so to the satisfaction of the seller.
Buyer-clientBuyer-customer
Follow-up: Under buyer agency, the sales representative is obligated to solve any problems to the buyer’s satisfaction & remove all conditions at the buyer’s request.
Any problems that are to be solved must be done so to the satisfaction of the seller.