Buyers Agent Article
The rewards from choosing the right methods of buying or selling real estate in New Zealand can be startling.
Most people drift into buying or selling and take the “normal” or “traditional” route on the way to their sale or purchase. Whilst this can have good results, normal and traditional is not always the best.
Usually real estate agents work for the seller. The normal method is for the seller to list the property with an agent and sign an authority to sell. This authority to sell usually incorporates the agreed amount of commission the seller will pay to the agent.
As soon as this listing authority is signed the agent has a fiduciary (a responsibility to act in confidence and trust) duty of care to the seller. Put simply the agent is working for the seller and not the buyer. The buyer does have rights and protections under the Consumers Guarantees Act but the fact is the agent’s first responsibility is to the seller.
Therefore if you are a buyer the normal or traditional method is not necessarily the best way to proceed. It is in fact illogical to enter into a transaction which puts you the buyer at an immediate disadvantage.
Let us consider a better method for the buyer. Quite simple really, all you do is just reverse the normal or traditional method.
This is done by appointing a real estate agent under a “Buyers Agent Agreement”. This agreement will incorporate the amount of the agent’s commission some time frames and a property description. Most importantly as soon as this agreement is signed – guess what? Yes the agent is working for you. The agent’s duty of care is to you, the buyer. The agent’s first responsibility is now to the buyer not the seller.
There are a number of strategies that a good buyers agent can employ to serve the buyers interests. By signing the “Buyers Agent Agreement” form the buyer has now given the agent the best possible advantage to actually drive the price down. This is the reverse of the “normal” method (where the agent is obliged to secure the highest possible price) but surely is a better method for the buyer.
To discuss your buying strategy please call Martin Albrecht on 021 56 56 82
To view the Buyers Agent Form click here...
To enquire further click here...
