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North Andover, Andover, Methuen, Haverhill and Merrimack Valley MA Real Estate home sale and home buyer representation.
Working together on
your real estate goals.
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Ron Carpenito's
Prime Property Team
powered by:
Keller Williams Realty
168 North Main St
Andover, MA
Mon-Fri 9:30-5:00 EST
Sat-Sun By Appointment
617-797-8710 Mobile
978-475-2111 Office
978-327-5182 Fax
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Massachusetts Buyer Agency Explained
O.K. EXACTLY WHAT IS A BUYERS REPRESENTATIVE?
Here are three examples: First, lets say you were on trial for a crime. Would you want to be represented by the prosecuting attorney? Of course not, you would want your own defense attorney. Second, imagine you are on the blue team playing the red team in a sporting event. Would you want to be coached by the red team or have your own coach to help you? Finally, imagine your a professional athlete. Are you going to negotiate your salary package by yourself or are you going to hire an agent? It's all about representation and who represents your best interests.
DO HOME BUYERS NEED THE HELP OF A BUYER REPRESENTATIVE?
Yes, because when buyers work with a real estate professional in a client level relationship that agent owes the buyer a fiduciary commitment and works in the best interests of their client. The home buying process is likely to go that much more smoothly, with more buyer satisfaction.
SOUNDS GOOD, BUT WHAT IS A FIDUCIARY COMMITMENT?
A fiduciary commitment is one where your real estate professional must always act in the best interest of you, the buyer, and owes no commitment to the seller. The 7 key components of a fiduciary relationship, which are remembered as OLD CAR include:
O - Obedience - we must carry out the lawful instructions of our client
L - Loyalty - we must always act in the best interest of our client
D - Disclosure - we must disclose all information that is relevant to the client
C - Confidentiality - duty to keep confidential client's information or discussion.
A - Accountability - agent must protect and account for all money, documents or other personal property given by the client.
R - Reasonable Care & Due Diligence - agent must act competently, capable of performing duties within the scope of the license requirements.
DOES A BUYER REPRESENTATIVE MAKE DECISIONS FOR US?
No. As your personal ally, advocating your best interests, a Buyer Representative is obligated to provide you with maximum information about buying a home, each step of the way. That means disclosing specifics about location, property values, offering price, negotiations, counter offers, contingencies, financing and the entire closing process. Armed with such vital information, you'll be thoroughly prepared to make decisions that are right for you and your unique circumstances.
WHAT ABOUT NEGOTIATING THE DETAILS?
First, a good Buyer Representative is fully qualified and highly skilled in the back and forth negotiations and financing queries that precede the closing of most real estate transactions. Second, a Buyer Representative is also experienced and committed to helping protect your best interests in the purchase.
HOW IS A BUYERS AGENT COMPENSATED?
As with any client level relationship (doctor, lawyer, CPA) a fee for services is expected. The good news is that this fee will most likely be paid partially or fully by the sellers agent through what is called a "co-broke fee". Briefly, when a listing agent (the sellers agent) markets a home for sale, they most often set aside a co-broke amount to compensate some or all of a buyer brokers fees. If this co-broke fee is equal or greater then the amount you agreed to compensate your Buyer Representative than you owe nothing! If the amount is lower than the agreed upon fee, first you and your Buyer Representative will attempt to negotiate with the seller to pickup the difference. If that is not possible in the end you would owe your agent the difference. What does this really boil down to? You can have a professional level client relationship and representation, most of the time at no cost to you.
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