Be Wary of Buyer Brokers

 Why it may be in your best interest not to use a buyer broker:

Read the fine print! Many "standard" buyer broker agreements specify that you will work with that particular agent exclusively, and worse, that you owe a fee to the agent regardless of whether he or she shows you the property that you end up buying, and even worse still, that you can't get out of the contract unless it is "mutually agreed upon" by both parties. Don't sign this! If you do, you are signing away your right to look at properties with other brokers as well as to look at private sale properties on your own. Specify, instead, that the agreement pertains only to those properties shown to you by that broker, and cross out any terminology that refers to your having an exclusive obligation to this person (be sure to initial it too). Remember, an agreement is just that -- an agreement between two parties. If the broker is not willing to modify the agreement, find someone else who is.

If you are working with a buyer broker, it is in your best interest to disclose this to the homeowner when you initially call about the property. We often hear stories of deals that sour as a result of a buyer broker entering the scene late in the game. It usually goes like this: a private seller shows the property to a buyer, has extensive discussions on terms and price, and on a subsequent visit, the buyer brings his/her buyer broker along to "finalize the deal" (sometimes buyers have even hired a broker at this point mistakenly thinking that they needed them for their own protection!). Unfortunately, this often times results in "killing the deal" instead since the broker's fee becomes a point of contention.

 Why it may be in your best interest not to use a buyer broker:

 You will be at a competitive disadvantage with by owner properties when you are competing for a property with other buyers that do not have a buyer broker working with them if you are not paying the broker's fee yourself. DO NOT EXPECT THE SELLER TO PAY THE AGENT'S FEE! THEY HAVE SPECIFICALLY DECIDED NOT TO USE AN AGENT, SO TO ASK THEM TO PAY AN AGENT'S FEE (ON YOUR BEHALF) IS INAPPROPRIATE. You have just put your offer at a competitive disadvantage...the seller is more likely to take someone else's similar offer...the offer with no agent attached!

If you have any questions about buying or selling a home, please call Picket Fence @ 660-3167 or 800-201-0338