What is Real Estate

Writen by Michael McClure

One of the biggest decisions you will be faced with when you decide to purchase a home is this: what TYPE of agent do you want representing you? In other words, what "agency affiliation" do you want your agent to possess? In real estate, there are seller's agents, dual agents, transaction coordinators, non-agents and buyer's agents. Discussing the differences between these various forms of agency is a large enough topic to warrant a separate discussion outside the more limited focus of this article. Once you do this research and learn the basics of agency law, you will more than likely come to the same conclusion that most buyers reach: your preference will be to be represented by a "buyer's agent." The goal of a buyer's agent is to find the perfect point of connection between the homes available in the market and the needs and financial capacity of the buyer. A buyer's agent, under a "Buyer Agency Agreement," acts solely on behalf of the buyer. Buyer's agents have a duty to disclose to the buyer known information about the seller which may be used to benefit the buyer.

The duties a buyer's agent owes to the buyer include:

• Promoting the best interest of the buyer

• Fully disclosing to the buyer all facts that might affect or influence the buyer's decision to tender an offer to purchase real estate

• Keeping confidential the buyer's motivations for buying

• Presenting all offers on behalf of the buyer

• Disclosing to the buyer all information about the willingness of the seller to complete the sale or to accept a lower price

Having said that, on a more practical level, a good buyer's agent will:

• Respect the price range that you have established (they will never show you homes beyond your price range)

• Be completely dedicated to the buyer

• Take whatever time it takes to find the buyer the right home

• Help the buyer get the best terms

• Utilize a "Buyer's Contract" to afford the buyer the greatest contractual protection

• Prepare a "Comparative Market Analysis" (CMA) to show the buyer recent comparable sales and give the buyer the information they need to identify the proper price to pay for the home

• Help the buyer negotiate the lowest reasonable price

• Advocate the buyer's interests, and only the buyer's interests, throughout the entire buying process

• Make recommendations with respect to quality, competitively priced lenders

• Make recommendations with respect to inspectors

• Attend the inspection with the buyer and make recommendations based upon the results of the inspection

• Make recommendations with respect to radon testers

• Make recommendations with respect to attorneys

• Obtain and review the closing documents prior to the closing and follow up on any errors or unusual items that they discover

• Review the closing documents with the buyer prior to the closing

• Attend the closing with the buyer

• Follow up with the buyer after the fact to ensure their complete satisfaction

When you are interviewing agents to potentially represent you in purchasing a home, I would suggest that you use the list above as a "scorecard" of sorts. Ask the agent you are considering if they will do all of the things detailed above. If they won't, I would suggest you keep looking until you find an agent that will. Given that a home is usually the single largest investment that you are likely to own in your lifetime, you owe it to your self to work with someone that is truly committed to doing all they can to protect your interests and find you the best possible bargain on the market.

The bottom line: a buyer's agent represents the purchaser. Take the time to find a quality buyer's agent. It may be the best decision you'll ever make in real estate. Please visit the Professional One Real Estate website for a more detailed discussion of buyer's agents at Professional One Real Estate website.

• Michael volunteers on the Professional Standards Committee (a self-governing body of the local association of realtors that acts in a judge-and-jury-like fashion regarding ethics complaints and arbitration disputes) of Western Wayne Oakland County Association of Realtors.

• Michael sat for and passed the State of Michigan's Associate Real Estate Broker's examination in December of 1996, and

• Michael is a member of the American Institute of Certified Public Accountants, National Association of Realtors, and Michigan Association of Realtors.

• Michael and his team have developed one of Metro Detroit's top ranking real estate websites http://www.professionalone.com