Consumer Notice: Buyer's Agent
A buyer's agent works only for the buyer. Our real estate buyer's agents have legal obligations, called fiduciary duties, to the home buyer, which includes reasonable care, undivided loyalty, confidentiality and full disclosure. However, in dealing with home sellers, a buyer's agent must act honestly.
In dealing with both parties, one of our New Jersey or Pennsylvania real estate buyer's agents may not make any misrepresentations on matters material to the transaction, such as the home buyer's financial ability to pay, and must disclose defects of a material nature affecting the property which a reasonable inspection by the agent would disclose.
A buyer wishing to be represented by a buyer's agent is advised to enter into a separate written buyer agency contract with the brokerage firm which is to work as their agent.
A traditional NJ or PA real estate broker is legally bound to work for the seller who pays the commission and therefore may be more intent on selling listed homes than finding your dream house.
The buyer's agent should assist the purchaser by all means possible in assessing the fair value of a property, and thereby negotiate for the best possible price and contractual terms.
According to Money Magazine, in a recent relocation study, Sprint found that 232 relocating employees who had hired a buyer's brokers paid an average of ninety-one percent of the homes actual listing price. Those who worked with a traditional [sellers] agent directly paid on average about ninety-six percent of the original price. The difference can be a significant chunk of change.
Because these brokers are obliged to get NJ and PA home buyers the best deal possible, they approach houses with a critical eye for apparent flaws. You'll still need an inspector to uncover hidden defects, however.
Buyer brokers also show properties sold by the owner, which can be cheaper because the only commission is what you agree to pay your broker. Sellers' agents usually won't show these homes because they don't make commissions on them.