When buying a home, it's in your best interest to have your own representation!
In the state of Pennsylvania, if a home buyer is shopping for homes with a real estate agent and that buyer has not signed a Buyer's Representation Agreement with the agent, that agent actually is a subagent of the seller.
In other words, the agent isn't working for the buyer at all and is obligated to act in the best interest of the seller.
Some buyers think they can do all their own research. Some think they can save money by not working with an agent and some think that if they buy a home using the listing agent they will get a much better deal. This simply is not true.
A buyer's agent represents you, the buyer, not the seller, and has full fiduciary duties, including loyalty to you. By definition, the buyer's agent has your best interests in mind throughout the transaction. The percentage of homebuyers with buyer representation has grown significantly in the past decade. According to a recent National Association of Realtors® survey, nearly half (46%) of home buyers used the services of a buyer's agent last year, and four out of every five buyer's agent agreements were in writing.
The benefit of buyer representation is the dedication of a buyer's agent to the home buyer. The buyer's agent and homebuyer establish a mutual agreement, known as a buyer agency agreement that will entitle the homebuyer to, but is not limited by:
•Loyalty
The real estate agent must act in the best interest of the buyer.
•Disclosure
All material facts such as relationships between agent and other parties, existence of other offers, status of earnest money, seller's financial condition, property's true worth, commission split with other brokers, and legal effect of important contract provisions.
•Confidentiality
Any discussions, facts, or information that should not be revealed to others but does not include responsibility of fairness and honesty in dealings with all parties.
•Accounting in dealings
Reporting of where any money placed in the hands of the broker is kept.
•Reasonable Skill and Care
Arriving at a reasonable purchase price and advising the buyer of such, affirmatively discovering material facts and disclosing them to the buyer, investigating the material facts related to the sale. With a buyer agency, the interests of the homebuyer will be represented in the purchase of the home. This scenario is different from a typical transaction where the buyer is not technically represented.
For most of us, buying a home is the biggest single investment we're likely to make – and we're only likely to do it maybe once or twice in a lifetime. The process is, by nature, filled with checks and balances - and many complex details. Having your own representation is not just and option, it is a MUST!