The Standard-Times

HOUSE&HOME

Buyer agency can help you buy real estate like 'The Donald'

Saturday, April 24, 2004 New Bedford, Mass.

You're fired!

For those of us who have watched The Apprentice each week, that's the con­sequences for making a mistake in The Donald's organization. So, do you think you have what it takes to be a true real estate apprentice and go it alone when buy­ing a home - or should you get help?

When Donald Trump purchases a build­ing, you don't think he goes it alone, do you? He's got a team of experts and lawyers poring over agreements and advising him on every aspect of those mega deals, while he's busy having lunch with models.

So why not have your own experts? OK, perhaps you can't afford the models or the cordon of lawyers, but it can pay huge divi­dends if you have a buyer's agent on your side.

It doesn't cost you anything additional to have a buyer agent, and it can save you thousands of dollars.

The principal difference between a buyer's agent and all other agents is that a buyer's agent must help the home buyer get the low­est price and the best possible terms. All other agents have a legal obligation to get the highest price and best terms for the sell­er of the property, not the buyer.

That's the simple but elegant concept of buyer agency - having an agent in your cor­ner to protect you throughout the process and to help you save time and money ­instead of using an agent who is working for the seller.

What you gain by having a buyer agent.

An agent is a fiduciary, like a trustee or guardian with an allegiance to the person he is representing. When the agent is a seller's agent (like most agents), that allegiance is to the seller.

When an agent is truly working for the buyer, his loyalty, confidentiality and disc1o­sure obligations are owed only to the buyer, and that can make a huge difference in what you end up paying for your home.

If you had access to a team of experts - something The Donald has every day - wouldn't you use them? Unfortunately, most people don't use the experts that are available to them.

All buyer agents are not created equal. There are two breeds of buyer agents, and not knowing the difference can be costly. Some buyer agents work for real estate com­panies that al so take property listings and who have obligations to try to sell those homes for the highest price. There are many problems that can arise from making a poor choice when seeking a buyer's agent, but the most damaging is associated with the con­flicts of interest that can arise when a real estate company represents both buyers and sellers.

In fact, these and other conflicts can strip you of the three most important reasons for having a buyer's agent in the first place: Advice, advocacy and full loyalty to you, the buyer.

You can easily avoid these conflicts by using an Exc1usive Buyer's Agent (EBA). They do not ever represent sellers' interests, so you can rest assured that you won't ever see your representation compromised as a result of the conflict between your desire to get the lowest price for a home and the sell­er's desire to get the highest price. Best of all, it costs you nothing more to use an EBA than it does to use any other type of agent.

What a buyer agent can do for you:

• Negotiate the lowest price and best terms in favor of the buyer. It is unwise to trust these negotiations to someone working for the seller.

• Provide confidentiality: A traditional agent can and probably will pass on the buyer's confidential financial information and motivation to the seller, undermining the buyer's negotiating position.

• Provide access to more property: In addi­tion to all the properties listed by all real estate companies, a buyer agent can help you to buy unlisted properties such as "for sale by owners" and forec1osures.

• Always put the buyer's interest first ­especially when it means pointing out rea­sons not to buy.

• Recommend a competent home inspector; a seller's agent is prohibited by law from doing so.

• Negotiate home inspection repairs in favor of the buyer.

If you had access to a team of experts ­something The Donald has every day ­wouldn't you use them? Unfortunately, most people don't use the experts that are available to them. That's why Ralph Nader quotes the Consumer Federation of America's study saying that home buyers overspend by $10 billion each year because of poor representation.

The best thing a buyer can do is to be fully aware of what type of agent they are working with before they buy a home ­and always negotiate from a position of strength. Just like The Donald.

Interested home buyers who want to learn more about the advantages of exclusive buyer agency are invited to attend the free Smart Home Buyer's Workshop at Whites of Westport, Route 6, on Thursday from 6:30-8:30 p.m. A team of experts will reveal proven strategies about buyer agency, home inspections, getting the best mortgage rates and money-saving legal tips.

Seating is limited. Pre-register by calling (508) 991-2345.

Richard E. Machado is president of Fidelis, The Buyer's Agent, in New Bedford. He is past president of the National Association of Buyer Agents, past president of the Massachusetts Association of Buyers Agents and past president of the Greater New Bedford Association of Realtors. He can be reached at www.mybuyeragent.com and by calling (508) 991-2345.

Reprinted with permission from The Standard-Times, 25 Elm Street, New Bedford, MA 02740