After a potential buyer interviews and selects a broker to represent their interests in the purchase of a home, it is critical they enter into a broker-client relationship. To accomplish that task, the execution of a Buyer’s Broker agreement is necessary to protect the interests of both client and broker. In so doing, a fiduciary responsibility has now been placed upon the broker to protect the interests of the buyer. Otherwise, the broker actually is beholden to the seller who compensates the buyer’s broker from proceeds of the sale.
Once engaged, the Buyer’s Broker determines the needs and wants of the buyer through an extensive interview process; establishes search criteria to automatically alert the buyer of potential matching properties through an email system; arranges for showings of properties; conducts expert analysis as to value of those in which the buyer has interest in order to optimize the terms and conditions of the sale; formulates an offer strategy; delivers the original offer to the seller; negotiates any and all counter offers; assists the buyer in procuring their mortgage; assists the buyer in arranging the appropriate inspections; assists the buyer in staying on task to meet the dates established within the agreement; assists the buyer is selecting an appropriate closing attorney; reviews the settlement statement prior to closing; attends closing to assure the buyer of a smooth ending to their transaction.
As you can see, the expertise required to manage the buying process well is extensive and can only be optimized by someone with considerable experience. A mistake can literally cost the buyer thousands of dollars in avoidable expense, now and in the future. When choosing, the two most critical broker qualifications are competency through practical experience and them being trustworthy. Choose carefully your real estate professional and, once chosen, execute a buyer broker agreement.