buying a Home

understanding buyer’s brokerage

As part of a buyer’s brokerage relationship, you will receive the following service:

Loyalty

The real estate broker must act in the best interest of the buyer.

Disclosure of Known Material Facts

Examples include, but are not limited to:

• Relationships between broker and other parties
• Existence of other offers
• Status of earnest money
• Property’s market value
• Commission split with other brokers
• Known adverse material facts

Confidentiality

Any discussions, facts or information that should not be revealed to other brokers and sellers are kept confidential between the buyer’s broker and the buyer, including knowledge of a purchaser’s willingness to pay a higher price or accept terms other than those being made in the offer.  The broker has the responsibility of fair and honest dealings with all parties.

Accounting in Dealings

Prompt accounting for all monies or property received by the broker.

Negotiating Skills and Care

The broker provides information for the buyer to arrive at a satisfactory purchase price and terms.  As a buyer’s broker, your broker will represent you and your interests in the purchase of your home. 

Who Pays the Commission?

The Seller

The seller has signed a listing agreement with his broker specifying a certain fee to be paid, and many times it has provisions for splitting that fee with the Buyer’s Broker.

or

The Buyer

The buyer can pay his or her broker a commission as set out in their written Buyer’s Broker Agreement.  Oftentimes, a Buyer’s Broker Agreement will specify that the commission to the buyer’s broker will be paid by the seller if the seller has agreed to compensate a buyer’s broker, and by the buyer if the buyer chooses a property in which the seller is not offering to compensate a buyer’s broker.