by Rob Giuffria

Did you know that real estate agents could represent either buyers or sellers? According to new research by the National Association of Realtors, just 30% of all buyers during 2005 received disclosures regarding representation. Nearly half of all first-time buyers were unaware of who was representing their interest. Many buyers mistakenly believe that the seller’s agent will also represent their interest in a transaction. This is patently false! The seller’s agent is legally obligated to act in the best interest of his or her client. So what options are available to prospective buyers?

According to the pamphlet Information for Home Buyers, published by the Connecticut Association of REALTORS®, Inc., you can take various steps protect your interest.

There are several different ways that you, as a buyer, can work with a Realtor®. When a Realtor® represents you, the Realtor® must keep information about your assets, liabilities, expenses, income negotiating position, and motives to buy confidential. The Realtor® representing you will also provide you with the his or her advice, opinion, and experience. You select the type of representation, but keep in mind that there are different advantages to each option. You should ask the Realtor® to explain these different advantages so you may make an educated decision as to which option will work best for you.

Connecticut law requires that the Realtor® furnish you with a written agreement setting forth all the terms and conditions of the representation between you and the Realtor®. The Realtor® must furnish you with this agreement prior to physically showing you a property that is not listed with the Realtor®’s firm. You may also be unrepresented; should you wish to do so, however, you then are not entitled to the Realtor®’s advice.

Exclusive Right to Represent: With this representation, you are giving the real estate firm the exclusive right to represent you. There is no need for you to look at properties on your own and it may be to your disadvantage to do so. The agent must make a diligent effort to find a property for the buyer.

Open Right to Represent: Under this type of agreement, you are free to look at properties with other Realtors® and directly with sellers. You are not committed to use a particular real estate firm and no firm is committed to you as a buyer.

Exclusive Agency Right to Represent: This type of agreement is a hybrid of the two mentioned above. Under this form of agreement, you are free to look at properties offered directly for sale by owners, but you agree to work only with the real estate firm to which you have given the exclusive agency buyer representation agreement if a property is listed with another real estate firm.

Your unique needs and your level of real estate knowledge determine the most appropriate type of buyer representation for you. The seller of a property shoulders almost all of the cost associated with buyer representation. Take advantage of the fact that home sellers have funded your representation and go find a great real estate agent to represent you!

Rob Giuffria is the founder of Real Estate Tours in addition to being a licensed real estate agent. He can be reached at Rob@TourRealtors.com or 800-837-2750.