What is Buyer Agency in Wisconsin?
Let’s start with some real estate terms:
Agent– A Seller or a Buyer hires a Broker to act as the Seller’s or the Buyer’s agent in a real estate transaction. A Broker hires a salesperson to act as an agent of the broker.
Buyer Agency Agreement-is the agency contract that authorizes the firm to provide brokerage services to the buyer as a client.
Client– A party to the transaction who has an agency agreement, such as a listing contract or buyer agency agreement. When a Seller signs a listing agreement Seller is now a client. Buyer signs a Buyer’s agency they are a client.
Customer–A party to the transaction who receives brokerage services but doesn’t enter into an agreement with that agency. Buyer that doesn’t have a signed Buyer agency agreement, this agent is often referred as Sub-Agent. Another example would be a Seller that hasn’t signed a listing agreement.
Pre-Agency-stage when buyer is deciding whether to be a client or not. We can show you properties, but no negotiations can occur.
Multiple Representation-Relationship is when a broker represents two or more clients in the same transaction.
Duties owed to all (Clients and Customers):
- Disclose-Material Adverse Facts are conditions which significantly and adversely affect the property value.
- Accurate information-Provide community data or current market conditions
- Fair and Honest Treatment
- Confidential, information that another party wants to keep confidential.
- Reasonable Skill and Care
- Safeguard Earnest Money funds held by Broker
- Objective presentation of offers
Advantages of working with a Buyer’s Agent:
- Critique a seller’s property, positive and negative impacts.
- A professional opinion of seller’s asking price
- Give advice about purchase price and talk more in depth about suggest price
- Buyer’s best interest structuring an offer
- Loyalty to Buyer
- Advise Buyer on solutions that are their best interest