It is
buyer’s right to seek an agent, and it is in their best interest to do so. For Sale by Owner When a potential buyer sees a For Sale by Owner property he or she should contact their realtor before contacting For Sale by Owner. And when buyer makes an offer on For Sale by Owner Property he or she needs representation on sale. The buyer always needs representation for many reasons.
Home Inspections Most buyers do not know to ask for home inspections, what they cost, or who to call to do one. If there is work to be done on an inspection report, a buyer should negotiate, and a REALTOR has skill and experience at this.
New Home Sites New home site buyers need to hire a REALTOR to look out for their interests, too. Remember, site agent is there to protect builder’s interest and therefore everything will be geared towards what benefits builder, not buyer. When registering at a new home site, be sure to include your agent’s phone number, name, and company.
Dual Agency: The Listing Agency When a REALTOR chooses to represent seller AND buyer, this is considered dual agency. A buyer’s rights are not emphasized in these circumstances. Bringing a REALTOR onto buyer’s side equalizes sale, and gives buyer much needed experience and professional advice. Earnest Money Deposit When buyer makes an offer on a For Sale by Owner – who makes Earnest Money deposit? How does a buyer obtain deposit back if contract falls through? A REALTOR will place money in an escrow account.
Buyer’s Broker Agreement A buyer’s broker protects buyer’s interest in transaction. In Virginia, seller pays commission, so by law listing agent and selling agent have to protect seller’s interest. So, if you select a buyer’s broker to work with you on home purchase, you will be represented in sale.
Cost Analysis In order to prevent overpaying for a home, a REALTOR will do a cost analysis for a buyer, to determine if home is priced correctly. This is same kind of analysis an appraiser would do, using comparable sales which have closed in last three months in area.
Escalation Clauses Escalation clauses are applicable in markets where there is very little inventory and it is a fast selling market. The escalation clause will give you a competitive edge in procuring home that you want when multiple offers are presented on a property. An escalation clause is not a standard feature on contractual sales.
