representation to assist you as a buyer. You should never rely on the listing agent to represent you and you should never walk into an open house for a home in which you’re interested without an agent. This could make you appear vulnerable, and an easy target and the listing agent could easily take advantage of you. Remember, the seller’s agent has the seller’s interests at heart (sell the home for the highest amount in the shortest amount of time), while a buyer’s agent will be paid from a commission split with the seller’s agent. When it comes down to negotiating as a buyer (as we’ll discuss in more detail later on), it’s just too risky for you to try to navigate the negotiation process, including the final sales price of the home as well as any conditions, on your own without professional agent representation. MISTAKE #7: NOT KNOWING THE B G THE BUYER BROKER AGREEMENT
The written agreements must include:
A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined. Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”). A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and A conspicuous statement that broker fees and commissions are fully negotiable and not set by law.
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