Buyer's Representation aka Buyer's Agent
What does this mean to you?
Purchasing your new home, recreational property, or ranch for you and your family can be both exciting and scary. It may be the biggest investment that you have ever made, or it may be something that you have done a number of times. Either way, you want someone who is looking out for you and your interests. A relatively new concept is that of a “buyer’s agent.” This person has fiduciary responsibility to you, the buyer. A seller’s agent has a fiduciary responsibility to the seller. That is, they want to get the highest price for the seller with the best terms.
A buyer’s agent may sign an exclusive or non-exclusive Buyer Broker Agreement with the buyer. The buyer’s agent identifies the buyer’s preferences, requirements, specifications and property price range. Then, using networking and extensive knowledge about properties in Montana, the buyer’s agent identifies listings that fit the desires of the buyer. The buyer’s agent contacts the listing brokers on the properties and obtains as much information as possible about the listed property in order to screen the property. If the property meets the requirements of the buyer, the buyer’s agent may then schedule a showing where the buyer and the buyer’s agent agent are present. In some cases the seller's agent may also be present at the showing. The goal is to see a number of properties in a 1-3 day time period, although depending on the property, it may take much longer.
The cost of buyer representation is paid by the seller of the property. It does not cost the buyer anything but loyalty and the willingness to communicate with the buyer’s agent. In very rare instances, some extensive property searches may entail a charge to the buyer. This would be communicated up front before the search begins.
Once a buyer has chosen a property, the buyer's agent assists the buyer in writing an offer and will present that offer to the seller and/or seller's agent. Once the offer has been negotiated and accepted, then the buyer's agent will then assist the buyer throughout the various phases of the buy-sell. The buyer's agent is there to assist a buyer, but the buyer also has a responsibility to conduct his or her own property investigation and to find out as much as he or she wants to know about the property. It is in the best interest of all parties involved to conduct a thorough investigation and to be an informed buyer.
Please see our page on Agency Relationships for the legal definitions of buyer's agent, seller's agent, and dual agent.