We can’t work for free, of course. It is your realtor’s job to help you buy a home. When that happens, the Realtor will be paid a commission by the seller of the home. Most realtors ask you for a commitment to hire them as your buyer’s agent so that they can feel confident making an investment of time searching for a home for you. They honor that commitment by ensuring that you get the best deal on your home and that the whole process works as smoothly as possible.

A realtor can show you ANY home with a real estate sign in the yard or listed with any other real estate licensee.

Absolutely not. A good realtor will look at ALL the homes available and show you the ones that best fit your needs and desires at the best price, regardless of who has them listed.

A buyer’s agent works solely on behalf of the buyer to promote the interests of the buyer with the utmost good faith and loyalty. A buyer’s agent is contractually — and ethically — obligated to negotiate on behalf of and act as an advocate for the buyer in all situations. A separate agreement called the “Exclusive Right to Buy Agreement” is required to create the commitment and sets forth the duties and the obligations of both the realtor and the buyer. 

Right off the bat, you get a professional commitment from your agent. It tells your realtor that you are committed to use their expertise and advice when searching for your home. In return, the realtor promises to work tirelessly as your advocate and agent.

There are many other benefits to having a buyer’s agent. A buyer’s agent is legally required to put your financial interest first (this is known as being a “fiduciary”). They will also work to uncover and disclose anything they can about the seller’s circumstances in order to best inform you and improve your leverage to get you a better deal on the house. They will negotiate harder for you because they are working for you. Regardless of whether your Realtor is a buyer’s agent or a transaction broker, he/she will diligently facilitate the sale and help you throughout the process. Your real estate professional will also coordinate with other professionals involved in the transaction process. A realtor’s industry contacts can make sure that any unforeseen issues are handled reliably and quickly.

Without a Buyer’s Agency Agreement, the realtor or licensee becomes a transaction broker. In the simplest terms, think of this as a referee, versus a coach. A transaction broker will assist BOTH you and the seller throughout the real estate transaction by performing terms of any written or oral agreement, informing all parties equally, presenting all offers, and assisting the parties with any contracts, including the closing of the transaction, without being the exclusive agent or advocate for either of the parties. A transaction broker must use reasonable skill and care in the performance of any oral or written agreement and must make the same disclosures about all adverse material facts concerning a property or a buyer’s financial ability to perform the terms of a transaction and whether the Buyer intends to occupy the property. No written agreement is required for this type of representation. 

Depending on the arrangement you make with a realtor or licensee, you may be obligated to buy through that realtor. If the seller won’t pay (which occasionally happens with For Sale By Owner homes), you may have to pay the agent’s commission. Also, you cannot buy through another realtor or licensee while under a buyer’s agent exclusive contract. If you did this, you could end up legally bound to pay a commission to your agent as well as the other realtor or licensee.

If you are working with a realtor and that realtor calls a FSBO seller for you and sets up an appointment, they will inquire if the seller is willing to pay a realtor a commission for bringing them a buyer. Because their ultimate goal is to sell the home and most buyers have representation, they are usually willing to do so.

This is one circumstance where it might cost you money to hire an agent. This should be discussed and decided upon with your realtor when determining if they will function as a buyer’s agent or a transaction broker. The Buyer’s Agency Agreement sets forth how an agent will be paid if a For Sale By Owner seller is not willing to pay their commission. Keep in mind that much of the time, your broker’s commission can be financed into your home mortgage.

Buying a home is a partnership. It is important to recognize that you are hiring a realtor for their overall real estate expertise; their job is not done when you find the home. Your realtor will put a lot of time and energy into finding you the right home—monitoring the market daily for potential matches, showing properties, sending letters to potential sellers, and working with other brokers to find options for you. They will manage the transaction upon offer acceptance and assist you at every step until you get to the closing table. Every house you see is part of an educational process on the road to making you recognize that the home you eventually decide on is the right house. If your realtor had not taken you to see every home you’d seen before you find “the one,” you wouldn’t have had the confidence and understanding of value, condition, price, area, etc. that make you ready to put an offer in when the time comes. When you consider all of this, it’s certainly reasonable the realtor should be compensated, no matter who finds the home.

Absolutely! If you attend an open house or visit a new development, always be sure to let the host/hostess know right away that you are working with a realtor and give them the name of your agent. It’s also important to avoid signing any contracts without your realtor to assist you.

• Do they put your education first? Do they make you feel empowered and educated about the process?
• How quickly after an initial contact does the person follow up (a good measure of timeliness in communication)?
• Do they seem competent and well educated?
• Have they prepared well for your meeting to prove themselves to you before asking you to make a commitment?
• Are they willing to let you out of the contract if you are not satisfied with the level of service provided?
• Do they do what they say they will do (and have testimonials to prove it)?
• Are they easily reachable (by phone, email, text, or in person)?
• Do you like them, and do you feel you would enjoy working with them?