Whether you are a real estate buyer broker and consultant looking for ways to increase your professionalism and number of closed escrows, or you are a buyer looking for the best service, representation and finding the property that truly meets your needs without shopping from one broker to the next or looking at many unsuitable properties, you should understand the idea of a buyer’s broker. A buyer’s broker represents the buyer exclusively which carries some unexpected benefits for both parties
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Real estate brokers are generally paid only upon completion of a sale or purchase of property. Real estate buyers acquire title only after closing, so closing escrows is the aim of each. Because real estate transactions can be complex, and market conditions often change quickly and constantly with the addition and removal listings, most buyers seek the services of an agent to represent them. Traditionally, sellers have paid the real estate commissions because they receive proceeds at closing during normal conditions.
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Apart from the payment of commissions, buyers need to understand who really represents them, and the agency disclosure form requires this notice, but doesn’t really explain the benefit of single agency or buyer’s brokerage agreements. The buyer’s exclusive authorization is like the flip side of the seller’s exclusive listing. The agent working with a buyer exclusively can devote far more effort and energy to locating the right property than a salesperson working with a number of less committed buyers. The benefit to the agent is that when the buyer purchases any property, listed or not, they are paid. The benefit to the buyer is that they now gain access to any property listed or not.
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If a real estate agent is working with larger numbers of prospective buyers, their chances of closing might seem to improve, but there will also be many buyers who consume their time but never close. If the agent works as a real estate buyer’s broker and consultant selecting only those buyers willing to work exclusively, they can devote all their time to a very small number of buyers delivering the highest possible level of service.
It is important to learn how to really listen to the buyer’s statements beneath the surface and determine what will actually meet their needs. For example the buyer that insists they only want a newer home may really be saying they want a property without high repair bills that needs a lot of work, when in reality they may discover that a fully remodeled older home with a larger property and more amenities for the same cost actually meets their needs better. The agent needs to gently probe, and really listen deeply, to discover the buyer’s true needs prior to setting a course of action.