Buyer Guide
Buying property involves a seemingly endless number of details. This guide is designed to make the process easier to navigate and understand.
1. AGENCY RELATIONSHIPS & REALTOR® COMMISSION
CHOOSING A REALTOR®
Buying a property is more than a business transaction. It’s personal. And it involves a seemingly endless number of details. Your REALTOR® is your guide for the entire process. Make sure your real estate agent is a REALTOR®, which means they have pledged to uphold a stringent code of ethics.
When choosing an agent to work with, be sure they…
- Listen carefully and “get” you.
- Understand your priorities, taste and budget—your vision.
- Are personable and easy to be with—you may be spending a lot of time together!
- Have a strong sense of integrity—you should feel confident they will effectively advocate for you during negotiations.
- Know their territory.
- Have a good handle on market conditions.
- Have community connections to additional professionals (such as attorneys, inspectors, and contractors) that you will need to reach the closing table.
Depending on your search criteria, you may find plenty of properties you want to see, or very few. Your REALTOR® can guide you by helping you focus on properties that fit your vision, or by generating ideas you may not have thought of. Don’t simply ask your agent to make appointments at properties you’ve seen online—discuss the options together.
AGENCY RELATIONSHIPS – WHO REPRESENTS WHOM?
State law requires your REALTOR® to present you with the MASSACHUSETTS MANDATORY REAL ESTATE LICENSEE-CONSUMER RELATIONSHIP DISCLOSURE at your first personal meeting. (This is a disclosure, not a contract.) Once you have asked them be your buyer’s agent, they will check “BUYER’S AGENT” on the form. But if you have not yet engaged them as your buyer’s agent, and you are looking to see a property listed by them or their company, they will check “SELLER’S AGENT,” indicating that they represent the seller. Here is a link to the form >>. Legal definitions are on page two.
When you view a property that your buyer’s agent (or their company) represents, this creates a dual agency. By signing the BUYER’S CONSENT TO DUAL AGENCY form, you acknowledge that this may occur. A dual agent must be neutral with regard to any conflicting interest of the seller and buyer. Our company does a substantial number of dual agency sales. So that both buyer and seller feel equally and accurately represented, we make sure that each party has an agent communicating on their behalf.
If you submit a Purchase & Sale Agreement in a dual agency situation, you will include the BUYER and SELLER NOTICE OF DUAL AGENCY. Referring back to the consent forms previously obtained, this form notifies all parties that a dual agency is in fact occurring.
COMMISSION
Sellers in our market typically have offered compensation to buyers to offset their “buyer’s agent fee.” This amount varies, and is published in the MLS listing and displayed in public portals. At the closing table, fees are distributed to the listing brokerage and to the brokerage that brings the buyer. Each brokerage then again divides their fees between the broker and the agents participating in the sale. Your agent receives no compensation until closing.
Guides written by Barney Stein,
LVRE agent since 2007
1. REALTORS, AGENCY & COMMISSION
CHOOSING A REALTOR®
Buying a property is more than a business transaction. It’s personal. And it involves a seemingly endless number of details. Your REALTOR® is your guide for the entire process. Make sure your real estate agent is a REALTOR®, which means they have pledged to uphold a stringent code of ethics.
When choosing an agent to work with, be sure they…
- Listen carefully and “get” you.
- Understand your priorities, taste and budget—your vision.
- Are personable and easy to be with—you may be spending a lot of time together!
- Have a strong sense of integrity—you should feel confident they will effectively advocate for you during negotiations.
- Know their territory.
- Have a good handle on market conditions.
- Have community connections to additional professionals (such as attorneys, inspectors, and contractors) that you will need to reach the closing table.
Depending on your search criteria, you may find plenty of properties you want to see, or very few. Your REALTOR® can guide you by helping you focus on properties that fit your vision, or by generating ideas you may not have thought of. Don’t simply ask your agent to make appointments at properties you’ve seen online—discuss the options together.
AGENCY RELATIONSHIPS – WHO REPRESENTS WHOM?
State law requires your REALTOR® to present you with the MASSACHUSETTS MANDATORY REAL ESTATE LICENSEE-CONSUMER RELATIONSHIP DISCLOSURE at your first personal meeting. (This is a disclosure, not a contract.) Once you have asked them be your buyer’s agent, they will check “BUYER’S AGENT” on the form. But if you have not yet engaged them as your buyer’s agent, and you are looking to see a property listed by them or their company, they will check “SELLER’S AGENT,” indicating that they represent the seller. Here is a link to the form >>. Legal definitions are on page two.
When you view a property that your buyer’s agent (or their company) represents, this creates a dual agency. By signing the BUYER’S CONSENT TO DUAL AGENCY form, you acknowledge that this may occur. A dual agent must be neutral with regard to any conflicting interest of the seller and buyer. Our company does a substantial number of dual agency sales. So that both buyer and seller feel equally and accurately represented, we make sure that each party has an agent communicating on their behalf.
If you submit a Purchase & Sale Agreement in a dual agency situation, you will include the BUYER and SELLER NOTICE OF DUAL AGENCY. Referring back to the consent forms previously obtained, this form notifies all parties that a dual agency is in fact occurring.
COMMISSION
Sellers in our market typically have offered compensation to buyers to offset their “buyer’s agent fee.” This amount varies, and is published in the MLS listing and displayed in public portals. At the closing table, fees are distributed to the listing brokerage and to the brokerage that brings the buyer. Each brokerage then again divides their fees between the broker and the agents participating in the sale. Your agent receives no compensation until closing.