How does buyer representaion work in a real estate transaction?

1041 Valley Hill Road
Malvern, Pennsylvania 19355
(610)594-9800 · Fax: (610)594-9955
email broker@ResourceForRealEstate.com

Call 1-800-AGENT 1st
(800-243-6817) or 610-594-9800
for immediate assistance

We want to be Your RESOURCE for Real Estate!

Frequently Asked Questions - (FAQs)

1. WHO WILL PAY FOR RESOURCE'S COMMISSION?

The custom of sellers paying real estate commissions is alive and well, so --- it's expected that our buyer/clients can get the best of both worlds - full representation, but at the seller's expense! But, let's not forget, it's the buyer that brings the money to the table. This is a powerful advantage. Make use of the power your capital has in the transaction.

Our buyer agency contract is an agreement that says RESOURCE Inc. will work as your exclusive agent. Technically you are responsible for a specified commission. However, over the past six years we have been paid by the seller on behalf of the buyer on virtually every buyer agency transaction. Who pays us has nothing to do with whom we represent.

2. Your commission is based on a percentage of the sales price. So, don't you really want me to pay as much as possible for my house?

NO. We promise, in writing, to be legally obligated to work for a client's best interests. However, we can work on an hourly rate (the same as a lawyer), a flat fee, a percentage of the sales price, a percentage of the money saved or a combination of the above. But since 1989, our clients have all chosen to have us compensated by the traditional "percentage of sales price" method.

We know - and soon after meeting us, you will know - that we do not fixate on commission. We believe that helping each of our clients get the best price and terms will pay large dividends in the future. Most of our business comes by referrals from happy clients.

3. How long does the buyer's agency contract last?

How about just one day?

Usually the contracts can go on for a year, but we're so confident our efforts will satisfy clients that our typical buyer agency contract allows for termination with one day cancellation notice. (So far, no one has taken us up on the escape clause). Of course, we would still follow up on those properties previously considered.

We only want to represent people who value our expertise and knowledge.

4. What happens if I decide I like one of RESOURCE Inc. own listings after I sign a buyer's agency contract?

(Conflicts of Interests)

First, we will always be willing to show you any property we have listed.

If after seeing the property you are still interested and wish to proceed, we will offer a number of options including:

a) agreeing to reimburse you, at settlement, for a lawyer to work with you and represent your interest. We will agree in advance to a fair fee.
b) referring you to (and even paying for) another real estate agency that we know could provide competent Buyer Agency representation for that property.
c) mutually agreeing to exclude the property in question from the buyer agency contract so you are free to employ another agent of your choice.
We feel that everyone in a real estate transaction should have the option of representation and will not stand in the way of that.

5. Disclosed Dual Agency

Agency law states that the following fiduciary duties are what is an agency (and all of its agents) owe to a client...

undivided loyalty
reasonable care
full disclosure
obedience
confidentiality
accountability

In short, the best interests of a client must come before all others.

SO................,

What happens when an agency has contracts to represent a seller and a buyer involved in the same property?

Our Policy is that any conflicts of interest should be resolved without Dual Agency but, most agencies are caught by the dilemma of listing as many properties as possible without passing up the buyer agency business. Almost all of our competitors duck this issue by the legally permissible use of Disclosed Dual Agency. We agree that all conflicts of interest should be disclosed. But we don't think buyers or sellers are being served just because it's disclosed that they give up their rights to full representation. Under Disclosed Dual Agency, neither party's interests may be served over the others, nor is certain information to be disclosed. For further alternative see FAQ question #4.

SO................,

Whose interests are being best served? Doesn't this knock out most of the value of having an agent represent you, either as a seller or buyer? Any time we ask another agent if they think dual agency is an oxymoron, they agree, but it's still their policy.

6. Why do I need a buyer's agent?

In Pennsylvania, real estate agents, as the name implies, are agents and have the legal responsibility to represent the best interest of their client. Traditionally, unless you sign a specific buyer agency contract, all agents involved in any transaction represent the seller. Many people believe that the agent that they work with represents them. This is not so. All agents involved in the transaction are legally obligated to get the seller the best possible price and terms.
Nobody is looking out for the buyer. As buyer's agents, we help level the playing field by representing the buyer's interest.
When you ask our opinion on the list price... you will receive our opinion of that property's value, not the listing agent's or the seller's desired price. Throughout the process you will be able to relax in the knowledge that a full-time professional is working for you -- not against you.

7. Will you guarantee to save me money?

Of course not... While we can't guarantee that you will save money on the purchase of your new home, we will guarantee to try to provide all the necessary information you'll need to make an informed offer and we will actively work and negotiate on your behalf.
We cannot control the whims of the seller, but we will help make you an informed buyer. And we'll also assist you in finding the best mortgage company, home inspectors and settlement companies for your needs.

8. How to proceed & communicate ?

The only thing you need do is contact us and give us an idea of what you would like to accomplish. We can guide you from there. Here are several differrent ways to communicate, choose the one (s) you are most comfortable with...

All information shall be confidential. The more you provide the better we can respond, but getting in touch is the most important step.

Click Here To Contact Us Now!

To provide contact info or search & referral criteria complete the "Search For Me Form"

If you would like a financial analysis please complete the "Financing Form"

RESOURCE INC.
1041 Valley Hill Road
Malvern, Pennsylvania 19355
(610)594-9800 · Fax: (610)594-9955

Call 1-800-AGENT 1st
(800-243-6817)