Buyer Agency is misunderstood. I meet a lot of buyers who have never worked with a realtor before. Realtors not only help buyers find what they are looking for, they are also there (more importantly) to help them through the negotiations and paperwork stages.
Many years ago, here’s how buyer agency was explained to me (I’ve paraphrased).
A good realtor will formalize the client relationship with a buyer by using a written agreement. The relationship is called buyer agency. The buyer agency agreement creates a bond with the homebuyer just like a listing agreement creates a relationship with a home seller.
For a homebuyer, client status affords many benefits not available to customers. The chart below shows the advantages of becoming a client.
Services available to buyers: Customer vs. Client
|Arrange property showings||Yes||Yes|
|Assist with financing||Yes||Yes|
|Provide accurate information||Yes||Yes|
|Explain forms and agreements||Yes||Yes|
|Give advice and council||No||Yes|
|Keep bargaining position confidential||No||Yes|
|Negotiate best price and terms||No||Yes|
|Disclose info that improves bargaining position||No||Yes|
|Prepare offer favorable to buyer||No||Yes|
|Show unlisted properties||No||Yes|