Do I Need An Accredited Buyer Representative?
Buying a home is
probably the most important purchase you'll ever make. Traditionally, all
residential real estate agents represented the home seller. That was true of the
"listing agent" who marketed the home for sale, as well as the agent who found
the buyer. That agent - who helped the buyer find the right home - actually
worked for the seller as a "subagent" of the listing agent. Under that
traditional system, all agents were legally bound to represent the seller and
the buyer had NO representation!
Buyers Now Have A Choice.
Buyers no longer need to represent
themselves during the home search and purchase while all agents legally
represent the seller. Smart home buyers today can receive undivided
confidential representation by choosing an Accredited Buyer Representative.
In fact, 71% of home buyers surveyed in a recent Gallop Poll for the National
Association of Realtors said they would use a buyer's agent next time they
purchased. Now you, like the seller, can have someone on your side looking after
your best interests.
How Can An Accredited Buyer Representative Help Me?
A buyer's
agent owes the following duties to their home buyer: - Loyalty - Disclosure -
Diligence - Accounting - Confidentiality - Reasonable Care - Obedience These
responsibilities are defined by North Carolina state law, the Realtors Code of Ethics,
and general principles of agency law.
Who Needs An Accredited Buyer Representative?
To ensure you're
buying smartly, you need a buyer's agent. If you're a first-time buyer,
relocating or unfamiliar with the local real estate market, or buying for
investment and need negotiating help you'll be best served by a buyer's agent
who puts your interests first.
Can A Seller's Agent Or Subagent Truly Help Me Buy?
Without a
buyer's agent, you're legally on your own. The seller's agent or subagent is, in
fact, working for the seller and is the seller's legal representative. True, a
seller's agent or subagent can offer buyers some services, including an
explanation of available financing, calculation of costs, and presentation of
your offer.
However, what a seller's agent cannot do is disclose to the buyer information not in the best interest of the seller, e.g., an opinion of the home's real value or what price and terms the seller would accept.
By effect of law, the seller's agent or subagent must negotiate on the seller's behalf and may not withhold information that could strengthen the seller's bargaining position. That means you, as a buyer, must not disclose to the seller's agent or subagent any information, financial or personal, that could possibly be used against you.
How Does One Become An Accredited Buyer Representative?
The
Accredited Buyer Representative (ABR) professional designation is acheived
through a process established by the National Association Of Realtors. This
process includes advanced education, testing, and submittal of evidence in
acting as an unaccredited buyer’s agent in multiple transactions. Furthermore,
designees must be sponsered by current ABR professionals to vouch for their
abilities, ethics and professionalism. Fewer than 1 in 500 real estate agents
have earned the ABR professional designation.
What Will An Accredited Buyer Representative Cost Me?
The right
question may be, "What will it cost me if I don't use an Accredited Buyer
Representative?" Purchasing a home without representation is possibly the
biggest financial risk one can make.
A buyer's agent can guide you step by step in the process to avoid mistakes. Of course, failure to discover the actual value of the property or defects in the property can be very costly mistakes. With a buyer's agent you can freely ask for advice, and I act proactively to discover foreseeable problems.