Buyers

My Client Services |  Buying 101 |  First-Time Buyers |  Buying a FSBO

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Whether you’re a first time homebuyer or a seasoned veteran of buying and selling real estate, working with a REALTOR® is always to your advantage.  Why? Allow me to explain:

Most people consider the role of the REALTOR® as someone who will help them find a home.  Sure, that’s a big deal. We know the market and homes and can help save you time and energy by making sure you only see the properties that meet your unique needs.  But keep in mind that finding the home is often the easiest part.  It’s what comes afterwards that can cause the bleeding ulcers.

More importantly, as a Buyer, when you call on a home listed for sale, you are dealing with an agent of the Seller. That agent’s loyalty lies completely with the Seller. That agent’s job is to look out for the best interest of his/her client. You have to ask yourself, who is looking out for your best interests?

Prior to 1993, all real estate agents essentially worked for the Sellers, regardless of who actually listed the property. This meant that all Buyers were on their own – Buyer Beware! Imagine you’ve been driving around your community for several weeks with an agent looking at houses. You’ve had eaten lunch with that agent, talked over multiple cups of coffee with that agent, and really felt like you bonded with that agent.  You felt the agent knew you and your needs and thought that agent was in your court.   Surprise!  That agent was really working for the listing agent under a system called subagency, where he/she is essentially a sub-contractor for the agent who actually has the listing!

Needless to say,this created an environment where Buyers often felt they had not been dealt with fairly and ultimately led to a lot of lawsuits. Today, many people still think this is how real estate works. Well, things have changed – to the Buyer’s benefit!

As of January 1994, BRRETA (Brokerage Relationships in Real Estate Transactions Act) went into effect. Passed by the Georgia Legislature, BRRETA defines agency in real estate and establishes guidelines for the relationship between Brokers and consumers. It basically defines the role of the agent in a client relationship and customer relationship. The most important part of this is that now Buyers too can have their own representation — opening a whole new era in the way real estate is purchased and sold in the State of Georgia.

Today, a Buyer has a choice:  To be a Client or a Customer while working with a Real Estate Broker.   As a Client, the Buyer gets the same level of service traditionally reserved for the Seller.  You see, the Seller always had to sign a contract with the Broker when listing his/her home.  Therefore, that contract generally created an agency relationship.  A Buyer can now enter into a Brokerage Engagement (the Buyer’s equivalent to a listing agreement) and has the rights to client-services.  As a customer, the Buyer is in the same position as he/she had always been prior to BRRETA, except now, the agent with whom he/she is working does NOT have any obligations to the Listing Agent nor the Seller in question.