Buying a home is the largest purchase you will ever make. You want to make sure you're protected during this transaction. The best way to do that is by hiring a Buyer's Agent.

In the late '90's real estate laws changed to protect buyers from the common-law practice of caveat emptor ("let the buyer beware"). Prior to this change, all real estate agents worked for the seller. Even if, they were using an agent other than the listing agent. While sellers benefited from this arrangement, buyers began to question whether their financial interests were being protected. Buyers demanded accurate, factual information, as well as, objective advice. Their demands resulted in a change to agency law and the Buyer's Agent was born.

While Buyer Agency was created to protect the fiduciary interests of home buyers, many still contact the listing agent when purchasing a home. Primarily, because buyers think they will be able to negotiate a better price for the home if they use the listing agent. Actually, that is rarely the case.

The listing agent has been hired by the seller to represent the seller's fiduciary interests. The listing agent's commission is negotiated at the time the listing agreement is signed. It is common practice for the listing agent to split that negotiated commission with the buyer's agent. However, if the listing agent brings the buyer, then he receives the full commission or both sides of the deal.

Buyers mistakenly think that commission split will be passed on to them.

It is not. Even worse than that, a buyer may actually pay more for a property by using the listing agent. Remember, the listing agent works for the seller. His responsibility is to get the highest sales price for the home.

By using a buyer's agent, you are assured that individual does not work for the seller. The buyer's agent works for the buyer. His responsibility is to negotiate the best price and terms for the buyer. There are many contingencies that can be put in place to protect the buyer. The buyer's agent will make sure all these contingencies are in place and satisfied prior to closing. He will also provide comparable sales data to assist in determining a purchase price.

You also want to use a buyer's agent when purchasing a for sale by owner for many of the same reasons stated above.

Most importantly, the buyer's agent will oversee every element of the transaction.

Some of the things you can expect from your buyer's agent:

1. assistance in securing a mortgage lender for pre-qualification
2. researching all available homes meeting the buyer's criteria, including for sale by owners, expireds, withdrawns and pocket listings (those not of the market yet)
3. contacting listing agents to secure additional information about their listings
4. scheduling and showing all available properties to the buyers
5. securing additional information about the listing prior to submitting an offer
6. investigating comparable sales to determine a purchase price
7. working with the buyer to determine the price and terms prior to submitting an offer
8. preparing offer to be submitted to the listing agent with all necessary contingencies and disclosures in place to protect the buyer
9. negotiating price and terms for the buyer
10. arranging and meeting with home inspectors
11. explaining home inspector's findings
12. negotiating repair requests on behalf of the buyer if warranted
13. meeting with an appraiser or surveyor as needed
14. coordinating correspondence between lender, title company and listing agent
15. reviewing final documents prior to closing
16. attending closing with buyer

All of this service is provided to the buyer for no cost. The buyer's agent represents the buyer but he is paid by the seller.

While many for sale by owners will gladly pay a buyer's agent, you should discuss who pays the buyer's agent should the seller refuse prior to viewing that home.

The best way to issure that you are protected is to enter into a signed buyer's agreement with your buyer's agent. This is a contract between the buyer and the buyer's agent which clearly outlines the details of your agency relationship.

If you are looking to buy a home in the Nashville area, make sure you have secured the assistance of a buyer's agent. Call Tammie White at (615) 495-0752 today with all your buyer agency needs.

Protect yourself...by hiring a buyer's agent!!