Every real estate transaction includes a buyer and a seller. There are four ways you can be represented in a real estate transaction: a buyer’s agent, a seller’s agent, a dual agent, and a transaction broker. As the name implies, a seller’s agent represents the seller. Their fiduciary responsibility is to the seller. So, remember this. When you talk to a listing agent, they may be friendly. They may provide you with lots of information about the property. But, ultimately, their responsibility lies with the seller, not you. That is why you need a buyer’s agent when looking for a Jersey Shore property to purchase.
Why Do I Need a Buyer’s Agent?
What Do They Do?
A buyer’s agent represents the buyer. Their fiduciary responsibility is with you, the buyer. They must provide reasonable care, undivided loyalty, confidentiality, and full disclosure to you and you alone. Basically, consider them an extension of you. They search the MLS for listings that match what you are looking for. They even look at for sale by owner properties for you. A buyer’s agent also negotiates on your behalf without disclosing any confidential information you provide them. When needed, they recommend other reliable professionals to help you with certain aspects of the real estate transaction (such as home inspectors, mortgage brokers, movers, etc.). Plus, if something comes up during escrow (issues found during the inspection or a low appraisal for instance), they use their expertise to address and resolve any problems.
Dual Agency
Sometimes, you may find yourself in a dual agency situation. Most people think that happens only when one agent represents both the buyer and the seller. However, you should be aware that in New Jersey, a dual agency also includes two different agents from the same brokerage. For example, you work with Agent X from ABC Real Estate. The seller works with Agent Y from the same firm. In New Jersey, this is considered a dual agency. They might share information with each other to close a deal that wouldn’t necessarily have happened if you worked with an agent from a different brokerage. While this does not mean anything malicious is going on, it does make it more difficult for your agent to fully represent you effectively. After all, could you imagine one lawyer representing both the plaintiff and the defendant in a trial? How successful would that be for both parties?
In general, I recommend hiring a buyer’s agent to help you find a Jersey Shore home. They tend to be more effective in negotiating on your behalf in a real estate transaction. After all, since they represent you, they only have your best interests in mind. When you decide to start looking for your next Downbeach home, contact me.
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate