Buyers Representation & Agency
Just a few years ago no one considered the idea of buyer’s representation. Sub-agency was the way real estate was practiced and on the surface things looked good. After all, “this is the way it’s always been done”. Then buyers began to question, “Who is our agent REALLY working for, Us or the Sellers?” The answer was the Sellers, and Buyer’s agency was born. Now, informed buyers secure the services of a Buyer’s Representative or Buyer’s Agent to assist in the purchase of their new home. There are many advantages to enlisting such services.
First are the fiduciary responsibilities owed a buyer client. Under a Buyer’s Representation Agreement, you are elevated to client-level status which means your Realtor® is obligated to provide certain fiduciary duties. These include keeping your information confidential, following lawful instruction, undivided loyalty, full disclosure, accountability, and reasonable care and due diligence. In the absence of such an agreement the agent you’re working with is not duty-bound to provide you with client level services and the bundle of rights mentioned above. This may leave you at a distinct disadvantage.
Certain Realtors® are recognized as having earned the nationally recognized designation of Accredited Buyer’s Representative (ABR). This national designation is awarded by the National Association of Realtors® to those who have completed a rigorous course on buyer representation, agency, negotiation, and other areas critical to buyers.
Another designation is the Certified Buyers Representative, or CBR. Though not a nationally accredited and recognized designation, holders of this designation are trained similarly as those who have earned the ABR. It is recommended that those seeking to buy real property use a real estate professional with a ABR or CBR designation