3b. Listing brokers and buyer agents
3c. Different buyer agency relationships
3d. How to find a quality agent
Read the full Chapter Three in one page
As buyers consider using real estate agents to help with the purchase of HUD homes, several different buyer agency relationships may be encountered. In most states, entering a business relationship agreement with a real estate broker or agent will give the agency or agent certain responsibilities to the buyer. However, various buyer agency relationships exist. The following are several of the buyer agency relationships that are available to buyers in most areas around the country:
- Non-Excusive Buyer Agency Relationship – This relationship allows the buyer to work with several agents at a time. Whichever agent helps the buyer make a purchase will be the one that receives the commission on the HUD home.
- Exclusive Buyer Agency Relationship – In this relationship, the buyer is not permitted to have a relationship with another agent while the agreement is in place. The exclusive buyer’s agent will be paid a commission or a fee for their services when a property is purchased and settled.
- Transactional Agency Relationship – Buyers can have the agent in this relationship prepare specific documents for a home purchase. However, this agent offers no consultative series or counsel to the buyer.
Without a written agreement between the buyer and the agent, certain services are not available. For instance, a buyer may only be offered a quality market analysis that enables them to figure out fair market value before placing a bid if they are working within an agency relationship. Within an exclusive buyer agency relationship, the buyer and agent are committed to working together and the agent promises that they will act with the best interest of the buyer in mind.
A quality agent that is working in the best interest of the buyer will work hard to ensure that the buyer gets the winning bid. Establishing a relationship with a tech savvy real estate agent is important as well, since this can have an impact on bid success.