3 Reasons You Should Consider Using a Buyer Agent when Purchasing Real Estate in Hawaii
Having a game plan and solid Buyer Representation is the name of the game in purchasing Real Estate in Hawaii. I appreciate all Buyers who make time to schedule the initial Buyer Consultation. It is the first step on the journey to a successful purchase. One of your best values in a Hawaii Real Estate transaction is having an experienced, licensed agent who negotiates on your behalf.
In addition to the 3 reasons listed below, Buyer Agents benefit homebuyers in the following ways:
- provide market comps
- handle all the delicate behind the scenes triumphs and/or avert follies in effort to lend personal service to their clients
- are the go to person when a first time homebuyer or repeat homebuyer may feel concern or has questions
- can be a trusted expert in the field with market knowledge and can guide the Buyer in their quest to also gain market awareness
#1. Minimal Requirements When Working with a Buyer Agent
Most Buyer Agents would like to have a Buyer sign a Buyer Agreement contract. It is similar to a Listing contract that a Seller signs with the expectation being the Seller is represented and is paying a fee to have his house sold.
The Buyer typically also wants the same type of service and agrees to sign the Loyalty Contract, or otherwise called the Buyer Agreement Form. The Buyer understands he wants service and agrees to work with one agent exclusively. Certain things go along with understanding the newly formed Buyer Agent relationship.
The following are key behaviors that will help a Buyer avoid entering into a dual agency situation unknowingly and requirements expected of the Buyer once partnered with a Buyer Agent:
- The Buyer understands it is a partnership
- The Buyer is instructed to call their new Buyer Agent in the event they see a property they are interested in with a ‘For Sale by Owner’ sign
- If the Buyer wants to go to an Open House they can “inform the Seller Agent they are being represented”
- If the Buyer wants to go to a New Home Sales office they know to “call their Agent first” or their agent won’t be able to help them
#2. A Buyer Agent Could Help Save You Money
Dual Agency is when the Seller Agent represents both parties – Buyer and Seller – in the transaction. I have had Buyers schedule the initial Buyer Consultation, and the day prior to the appointment, walk into a new home sales office. When they call back they want to know (after they have signed a purchase contract), “Can you still help us?” The answer to that is, “No, I am sorry, you are being represented by the Seller’s agent now.”
If I had been able to explain it first that would probably have been better for the Buyer. It is helpful if something were to go wrong later on in the transaction to have an advocate in the transaction. Keep in mind the Seller agent isn’t going to suggest the Buyer ask for the Seller to pay closing costs. The Seller Agent has a fiduciary contract to get the highest dollar for the Seller, so to suggest this would be working in favor of the Buyer, ultimately which would then be a conflict of interest.
You can use that as one example of why you as a Buyer might have paid your own closing costs in this situation instead of trying to negotiate for the Seller to pay a portion of the closing costs. Thus, wandering around in Open Houses without your Buyer Agent might be a costly mistake. A Buyer Agent might have suggested it when it was time to pick a strategy on how you might write up an offer to the Seller.
#3. Buyer Agents Don’t Get Paid Until the End
Buyer Agents are normally compensated through a mutual agreement stated by a Seller in the multiple listing service (MLS). This compensation is paid when the house is sold through the neutral party called Escrow. The Escrow company holds the earnest money deposit the Buyer agrees to pay the Seller and is due when the offer is accepted by both parties.
Solid Buyer Representation in Hawaii
If you are interested in solid Buyer Representation for your Hawaii property purchase, don’t hesitate to contact me.
Diane C. Chavez RS ABR, GRI