The Day

Understand­ing buyer brokerage

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By Marilyn Lusher Sponsored by: Eastern Connecticu­t Associatio­n of REALTORS®

Buyer brokerage is one of the fastest growing real estate specialtie­s because more and more homebuyers want the services of an agent who owes full fiduciary responsibi­lities, duties, and loyalty to the real estate buyer. The buyer's agent works for the buyer-client and has the buyer's best interests in mind.

In fact, Connecticu­t law requires all buyers to sign a buyer representa­tion agreement with a real estate agent before that agent can show them properties listed by other brokers.

The National Associatio­n of REALTORS®' (NAR) 2016 Profile of Home Buyers and Sellers found that 93 percent of all buyers in New England purchased their home through a real estate agent or broker.

Just as a seller's agent is hired to obtain the price and sale terms sought by the seller, a buyer's representa­tive is hired to get the best possible price and terms for the buyer.

In buyer representa­tion, a real estate profession­al is paid to represent the buyer in a real estate transactio­n. The buyer's representa­tive and the buyer negotiate the fee for service.

The buyer representa­tion agreement sets forth how the buyer's representa­tive will be compensate­d. Compensati­on for the buyer's broker is paid by the listing broker, the seller, or by the buyer directly. The fee is negotiable.

NAR recommends that consumers entering into a buyer representa­tion agreement consent to the terms of compensati­on and sign a written agreement based on these terms before they start to view properties. The agreement should spell out the responsibi­lities of both parties throughout the real estate transactio­n.

Buyer representa­tion goes beyond just negotiatin­g prices for homes.

A buyer's representa­tive might negotiate with the seller for a smaller deposit, for all closing costs to be paid by the seller, or for other contract terms more favorable to the buyer.

Buyer brokerage assistance may include helping the buyer obtain third party assistance, such as legal counsel to review proposed contracts, or an inspector to conduct a structural inspection of the property. A buyer's representa­tive is loyal to the buyer's interest. Clearly, the service and expertise provided by a buyer's representa­tive are what the home buying public wants and values.

Buyer representa­tion services begin with needs assessment, leading to a search for the right property and continuing to negotiatio­ns for the best price and terms, right through to completion of the transactio­n and beyond.

Visit the ECAR web site at www.easternctr­ealtors.com.

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