The Day – Buyer brokerage looks to get the best deal for those purchasing a home – Connecticut

 Published March 04. 2016 12:01AM  By Quincy Clayton Sponsored by: Eastern Connecticut Association of REALTORS®.

Buyer brokerage is one of the fastest growing real estate specialties because more and more homebuyers want the services of an agent who owes full fiduciary responsibilities, duties, and loyalty to the real estate buyer. The buyer’s agent works for the buyer-client and has the buyer’s best interests in mind. In fact, Connecticut law requires all buyers to sign a buyer representation agreement with a real estate agent before that agent can show them properties listed by other brokers.

The National Association of REALTORS®‘ (NAR) 2014 Profile of Home Buyers and Sellers found that 88 percent of all buyers in purchased their home through a real estate agent or broker. Just as a seller’s agent is hired to obtain the price and sale terms sought by the seller, a buyer’s representative is hired to get the best possible price and terms for the buyer. In buyer representation, a real estate professional is paid to represent the buyer in a real estate transaction. The buyer’s representative and the buyer negotiate the fee for service. The buyer representation agreement sets forth how the buyer’s representative will be compensated. Compensation for the buyer’s broker is paid by the listing broker, the seller, or by the buyer directly. The fee is negotiable.

NAR recommends that consumers entering into a buyer representation agreement consent to the terms of compensation and sign a written agreement based on these terms before they start to view properties. The agreement should spell out the responsibilities of both parties throughout the real estate transaction. Buyer representation goes beyond just negotiating prices for homes. A buyer’s representative might negotiate with the seller for a smaller deposit, for all closing costs to be paid by the seller, or for other contract terms more favorable to the buyer.

Buyer brokerage assistance may include helping the buyer obtain third party assistance, such as legal counsel to review proposed contracts, or an inspector to conduct a structural inspection of the property. A buyer’s representative is loyal to the buyer’s interest. Clearly, the service and expertise provided by a buyer’s representative are what the home buying public wants and values. Buyer representation services begin with needs assessment, leading to a search for the right property and continuing to negotiations for the best price and terms, right through to completion of the transaction and beyond.

Visit our web site at easternctrealtors.com or our blog at ecarvoice.com to learn more. Quincy Clayton is president and state director at the Eastern Connecticut Association of REALTORS®.

Source: The Day – Buyer brokerage looks to get the best deal for those purchasing a home – News from southeastern Connecticut

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The 3 Types of Buyer-Broker Contracts | realtor.com®

 

The 3 Types of Buyer-Broker Contracts By Craig Donofrio | Apr 7, 2015

Buying a home comes with a lot of responsibilities: You need to figure out the right community, the right size of house, the location, and especially the price. You have to negotiate with sellers and real estate agents. To cut down on the time it takes to do this, you might want to hire a real estate broker, otherwise known as a buyer’s broker, to represent you and help you find a home. The broker usually has an agent to help him or her with this task.

If you want to get a buyer’s broker, you’ll want to know about the three most common buyer-broker contracts and what they entail. The basics To avoid problems, the buyer and broker enter into a contract defining the legal relationship. This contract explains the duties and responsibilities of the parties and sets out exactly what services the broker will provide.

There are several types of buyer’s broker real estate agreements representing the nature of the relationship between the buyer and the broker. These contracts can generally be provided by the broker in preprinted “fill-in-the-blank” forms adapted to the laws of the particular state. Nonexclusive not-for-compensation contracts  This type of contract describes the broker’s duties and obligations to the home buyer, generally to be performed by the broker’s agent. It also outlines the relationship between the agent and the broker and the buyer’s responsibilities.

This contract specifies there is no compensation to be paid to the broker. Other common components include that the buyer can retain more than one brokerage and either party can revoke the contract at any time. Nonexclusive right-to-represent contracts This arrangement defines the broker’s responsibilities to the buyer, the relationship between the broker and the agent, and the buyer’s obligations. It provides for compensation to be paid to the broker if the broker proposes the house the buyer decides to buy or otherwise represents the buyer. If another party pays a commission to the broker, this obligation is removed. Additionally, the buyer is typically able to buy a home through another broker as long as that home was not proposed by the previous broker.

Usually these agreements may not be revoked except for specified reasons. Exclusive right-to-represent contracts This is the most common contract between home buyers and brokers. This agreement outlines the obligations of the broker, the broker-agent relationship, and the responsibilities of the buyer.

What distinguishes this contract is the buyer may not retain more than one broker to assist him or her. It sets forth the commission amount to be paid to the broker, which is owed even if the buyer finds the house herself or another broker does so. But if another party pays the broker the commission, the buyer doesn’t have to. In comparison to nonexclusive contracts, which are usually for one or two months, exclusive agreements might run from several months to a year and generally cannot be revoked except for specified reasons.

Making the choice The key elements of the agreement are broker exclusivity, contract duration, compensation, and the description of the type of home the buyer is seeking. There is no “correct” answer for every buyer, so you should compare options. Speak with friends, family members, and professionals who are familiar with the process, and consult different brokers to see what they offer and whom you feel most comfortable working with.

Updated from an earlier version by Moshe Pollock Craig Donofrio covers home finance and all things real estate for realtor.com. His work has been featured in outlets such as The Street, MSN, and Yahoo News. Follow @CJDonofrio

Source: The 3 Types of Buyer-Broker Contracts | realtor.com®

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Horiike v. Coldwell Banker | Supreme Court | Chris Cortazzo

Supreme Court ruling could have far-reaching implications for brokerages California Supreme Court ruled buyer and seller agents working for same firm owe fiduciary responsibility to each other’s clients November 21, 2016 05:30PM By Justin Sayles

The California Supreme Court ruled Monday that a real estate brokerage representing both the buyer and seller in a deal owes the same fiduciary responsibilities to each party, potentially setting a significant precedent for how information is shared in so-called “dual-agency transactions.” In a unanimous decision, the court ruled in Horiike v. Coldwell Banker that a when an agent representing a seller is working for the same firm as the agent representing the buyer, they become an “associate licensee” and must properly investigate and disclose all important information related to the transaction.

The case centers on a Chinese millionaire’s 2007 purchase of a Malibu mansion and the manner in which the property’s size was listed. The buyer, Hiroshi Horiike, worked through one Coldwell Banker agent, Chizuko Namba, to purchase the home. The seller was represented by another Coldwell Banker associate — celebrity realtor Chris Cortazzo, who is being sued for $3.3 million in a separate case.  After his $12.25 million purchase, Horiike raised issue with the way Cortazzo advertised the property’s square footage, alleging he misrepresented its size by thousands of feet. Horiike eventually sued, losing in a lower court in 2012. However, he emerged victorious in 2014 when the California Second District Court of Appeals ruled that under the state’s Civil Code, Coldwell Banker was operating as a dual agent and owed fiduciary responsibility to Horiike through both of its agents — a decision appealed by the brokerage firm.

Monday’s decision affirms the appeals court’s ruling, creating a “very significant and substantial but not onerous” responsibility for dual-agency brokerages, said attorney Fred Cohen, who represented Horiike before the Supreme Court. “This case makes clear the [selling agent] has to take that duty serious and make sure the buyer goes into the transaction with his or her eyes open,” Cohen said. The dual-agent law and the case’s potential impact The laws the case took into consideration, covered in California Civil Code Section 2079, spell out the responsibility each agent has to the buyer and seller in a transaction.

While a seller’s agent — Cortazzo in this case — owes “[a] fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the seller,” that agent has no fiduciary responsibility to the buyer and must be only “honest and fair” in its dealings with that side. A selling agent must also disclose any issues “known … materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.”  The buying agent, in this case Coldwell Banker’s Namba, has a similar fiduciary as it relates to her client, and the same “honest and fair” standard to meet in dealing with the seller.

The Horiike v. Coldwell Banker ruling has the potential to alter the requirements of a company’s fiduciary responsibility when its agents are representing both sides. Coldwell Banker’s attorney in the case, Edward Xanders, admitted as much when he said a ruling against his client would create a  “whole new ballgame” for agencies, possibly forcing them to disclose damaging information. It would also apply to commercial brokerages that have dual agent transactions, such as Cushman & Wakefield and CBRE. That potential far-reaching impact drew the attention of the industry — several trade organizations with competing interests at stake in the decision filed briefs with the court.

The California Association of Realtors, a trade group that represents more than 175,000 licensed real estate agents in the state, argued in an amicus brief that a ruling limiting dual-broker transactions would limit a consumer’s choices. Because a buyer working with a broker doesn’t know what property they will ultimately purchase, there’s no way to anticipate whether the seller will be represented by the same firm. “[B]uyers will be restricted in the properties they can explore, and sellers will have a limited pool of buyers,” the association said in a statement. “Allowing all parties to explore buying or selling more properties on the market, not fewer, benefits the consumer.” It’s a view shared by Michael Nourmand, president of Beverly Hills agency Nourmand and Associates, who said in an interview with TRD before the decision was issued that dual agent limitations would be “excessive.” …read more click below

Source: Horiike v. Coldwell Banker | Supreme Court | Chris Cortazzo

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Understanding Home Buying: Things to Consider

Published on Jan 27, 2015

If you’re getting ready to buy a house, there are a few components that are really important to consider. The first is your budget. Your budget should include enough to cover both your down payment and a comfortable monthly payment. Second, you should consider the actual location of your home and make sure that it includes all the amenities you are looking for. Third, you want to find the type of home that’s going to fit both you and your family’s life styles. A common question that most first time homebuyers experience is where to start. Do you start with the real estate agent or the lender? The first step you need to take in the home buying process is talk to a mortgage company before a real estate agent. This way you can find out how much you actually qualify for, which, in turn, helps the real estate agent narrow down the options of homes to ones that are within your price range. Aside from your real estate agent, be sure to customize your search as well by looking at different websites and apps that will help you find your perfect home. For more tips and advice on buying your first home make sure you visit our website at http://www.QuickenLoans.com/Blog

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Understanding Home Buying: The Mortgage Process

Published on Jan 27, 2015

The main steps of purchasing a home are actually very simple. First, you want to get a preapproval letter from your mortgage company so you know how much you qualify for. The next step is finding the right real estate agent who can lead you to the home that aligns with all your goals. After finding your perfect home, you’ll be ready to make an offer on the house. Once that offer is accepted, a purchase agreement is drafted and signed by both the buyer and seller. Now that everything is signed and turned into your lender, the underwriting process begins. To avoid any mistakes during the underwriting process, be sure to have all the proper documentation (e.g. tax returns, pay stubs, w-2s, and bank statements) verified. For more tips and advice on buying your first home make sure you visit our website at http://www.QuickenLoans.com/Blog

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How To Get Top Dollar In Any Market

The best chance for selling your property is within the first seven weeks. Studies show that the longer a property stays on the market, the less the seller will net. Below are 5 main factors to accomplishing this goal.

PRICING FACTOR

It is very important to price your property at a competitive marketvalue right when you list it. The market is so competitive that evenover-pricing by a few thousand dollars could mean that your house will not sell. It’s interesting, but your first offer is usually your best offer. Here are reasons for pricing your property at the market value right from the start in order to net you the most amount of money in the shortest amount of time.

An overpriced home:

• Minimizes offers • Lowers showings • Lowers agent response • Limits financing • Limits qualified buyers • Nets less for the seller

80% of the marketing is done when we decide on what price to list your home. If you are unwilling to list at current market value, you would be better off not putting it on the market at this time.

CLEAN FACTOR

Most people are turned off by even the smallest amount of uncleanness or odor when buying a home. Sellers lose thousands of dollars because they do not adequately clean. If your house is squeaky clean, you will be able to sell your home faster and net hundreds, if not thousands of dollars more. If you are planning on moving, why not get rid of that old junk now so that your house will appear larger? Make more space.

Odors must be eliminated especially if you have dogs, cats, or young children in diapers or if you are a smoker. You may not notice the smell, but the buyers do! Most agents have a difficult time communicating to their sellers about odor. If you employ an agent to get the
most amount of money for you, please don’t take offense if he must confront you about odor problems.

ACCESS FACTOR

Top selling agents will not show your home if both the Key and access are not readily available. They do not have time to run around town all day picking up and dropping off keys. They want to sell homes! The greatest way to show a house is to have a key! When your home is being shown, please do the following:

• Keep all lights on • Keep all drapes and shutters open • Keep all doors unlocked • Leave soft music playing • Take a short walk with your children and pets • Let the buyer be at ease and let the agents do their job

PAINT & CARPET FACTOR

Paint is your best improvement investment for getting a greater return on your money. Paint makes the whole house smell clean and neat. If your house has chipped paint, exposed wood, or the paint looks faded, it is time to paint. If your carpet is worn, dirty, outdated, or an unusual color, you may need to seriously consider replacing it. Many houses do not sell because of this problem. Don’t think that buyers have more money than you have to replace carpet. They don’t. They simply buy elsewhere.

FRONT YARD FACTOR

Your front yard immediately reflects the inside condition of your house to the buyer. People enjoy their yards. Make certain that the trees are trimmed so the house can be seen from the street. Have the grass mowed, trimmed and edged. Walkways should be swept. Debris cleared away. Remove parked cars. This all adds to curb appeal. If a buyer doesn’t like the outside, they may not stop to see the inside.

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9 Deadly Mistakes Homesellers Make

Some of our clients have to sell before they buy, here are 9 great tips to selling your home.

MISTAKE #1. USING A REAL ESTATE AGENT INSTEAD OF A REALTOR

When you’re looking for help buying or selling property, it’s important to remember that the terms “real estate agent” and “Realtor” are not synonymous. Realtors can provide an extra level of service and to be a Realtor you must be a member of the National Association of Realtors (NAR). The equivalent organization in Canada is the Canadian Real Estate Association (CREA). Both are non-profit trade organizations that promote real estate information, education and professional standards. The National Association of Realtors also has earned a strong reputation for actively championing private property rights and working to make home ownership affordable and accessible.

The NAR and CREA members adhere to a strict code of ethics founded on the principle of providing fair and honest service to all consumers. Realtor business practices are monitored at local board levels.

Arbitration and disciplinary systems are in place to address complaints from the public or board members. This local oversight keeps Realtors directly accountable to the individual consumers they serve and therefore the consumer is more likely to find better service and accountability by using a Realtor.

MISTAKE #2. COMPLACENT MARKETING WHEN SELLING A HOME

When selling your home there are no guarantees that the ultimate buyer of your home will have simply walked through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer in the shortest period of time.

Ask your Realtor to list for you all of the ways he/she intends to market your home and on what time-line. Also, be sure to ask about the home being advertised on the Internet.

MISTAKE #3. TAKING FOR GRANTED THE “CURB APPEAL” OF YOUR HOME

When you’re preparing your house for sale, remember the importance of first impressions. A buyer’s first impression can make or break whether they even want to go inside for a look. It is estimated that more than half of all houses are sold before the buyers even get out of their cars.

With that in mind, be sure to stand outside of your home and take a realistic “fresh look” and then ask yourself what can be done to make the “curb appeal” improve. Also ask your Realtor’s opinion as to how to improve the curb appeal. It could make a huge difference in your final sales price.

MISTAKE #4. FORGETTING ABOUT HEALTH AND SAFETY ISSUES

Be upfront and disclose to your Realtor any problems with the property. The problems are going to be discovered anyway. A decade ago, health and safety issues were rarely a part of the typical real estate transaction. Today, however, it’s common for inspections relating to health, safety, and even environmental concerns to be a part of most sales contracts.

Moreover, in many states, the seller must disclosure to the buyer any knowledge of existing property problems. In many cases, these issues have been or can be factored into the home’s listing price.

MISTAKE #5. FORGETTING WHAT YOU WOULD WANT TO SEE IF YOU WERE THE BUYER OF YOUR HOME

Remember that although people can be different in personality, they tend to be the same when it comes to expectations at someone else’s expense. In other words, a prospective buyer would probably like to see a perfect home from top to bottom, inside and out, when it comes to your home. Try to do as many of the following items as possible to improve the likelihood of your home sale in an expedient way.

On the outside 1) Sweep front walkway. 2) Remove newspapers, bikes and toys. 3) Park extra cars away from the property. 4) Trim back the shrubs. 5) Apply fresh, clean paint throughout. 6) Clean windows and window coverings throughout.
7) Keep plumbing and all appliances in working order. 8) Maintain all sealant (window, tub, shower, sink, etc.) in good condition. 9) Make sure roof and gutters are clean and in good condition. 10) Mow the lawn frequently and plant flowers. 11) Keep pet areas clean.

On the inside 1) The kitchen and bathroom should shine. 2) Quick once-over with the vacuum; carpets should be clean. 3) Place fresh flowers in the main rooms. 4) Put dishes away, unless setting a formal display for decoration. 5) Make all beds and put all clothes away. 6) Open the drapes and turn on lights for a brighter feel. 7) Straighten closets. 8) Put toys away. 9) Turn off television. 10) Play soft music on the radio/stereo. 11) Keep pets out of the way and pet areas clean and odor-free. 12) Secure jewelry, cash, prescription medication and other valuables. 13) Enhance the spaciousness of each room.

MISTAKE #6. THINKING YOU NEED TO BE IN THE HOME TO EXPLAIN THINGS TO A PROSPECTIVE BUYER

You will be better served if you allow your Realtor to do their job without you there. Most potential buyers usually feel more comfortable if they can speak freely to the real estate professional without the owners being present.

If people unaccompanied by an agent request to see your property, you should refer them to your real estate professional for an appointment.

MISTAKE #7. NOT KNOWING HOW TO PRICE YOUR HOME TO SELL

Perhaps the most challenging aspect of selling a home is listing it at the correct price. It’s one of several areas where the assistance of a skilled real estate agent can more than pay for itself. Listing the home too high can be as bad as too low. If the listing price is too high, you’ll miss out on a percentage of buyers looking in the price range where your home should be.

This is the flaw in thinking that you’ll always have the opportunity to accept a lower offer. Chances are the offers won’t even come in, because the buyers who would be most interested in your home have been scared off by the price and aren’t even taking the time to look.

By the time the price is corrected, you’ve already lost exposure to a large group of potential buyers. The listing price becomes even trickier to set when prices are quickly rising or falling. It’s critical to be aware of where and how fast the market is moving – both when setting the price and when negotiating an offer. Again, an experienced, well-trained agent is always in touch with market trends – often even to a greater extent than appraisers, who typically focus on what a property is worth if sold as-is, right now.

MISTAKE #8. NOT PLANNING YOUR MOVE EARLIER ENOUGH

Many sellers simply don’t plan their move early enough and then feel totally overwhelmed at the time of moving out of the house. If you are able to move at any time of the year, don’t wait until summer, the peak-moving season.

Consider also that the first and last few days of the month are extra busy. If you plan to sell your house, get it on the market as soon as possible. Keep a record of all expenses related to the move, some of which may be tax deductible.

Fill out the Personal Household Inventory for each room. This is important for establishing the amount of declared valuation for the shipment and as a permanent inventory for insurance purposes. List, as nearly as possible, the year of purchase and original cost of each item. Attach any invoices or records of purchase to the completed inventory.

Prepare a separate high-value inventory if the shipment will contain articles of “extraordinary” value. The following list includes items that might fall into this category:

* Antiques * Art Collections * Cameras * China Collections * Computer Equipment * Crystal * Figurines * Firearms * Jewelry * Manuscripts * Oriental Rugs * Silver * Stones Or Gems * Tapestries * TVs Or Stereos

Also, unless you have been given a binding moving estimate where a firm cost is established in advance, the exact cost of a move cannot be determined until after the shipment has been loaded on the van and weighed.

The weight on which charges are based is calculated by weighing the van before and after loading. The total cost of the move will include transportation charges, any charges for declared valuation, plus charges for any extra services performed at your request.

All of these charges are based on tariff rate schedules.

MISTAKE #9. USING A “CONVENIENT” REALTOR RATHER THAN USING AN EXPERIENCED REALTOR

When working with a real estate agent, it’s critical that you have full confidence in that agent’s experience and education. A skilled, knowledgeable agent should be able to explain to you exactly why your home needs to be priced at a certain level – compared to recent listings and sales of homes similar to yours.

Experienced agents also know exactly what the current pool of buyers are looking for in relation to particular styles and price ranges of properties. A skilled agent can recommend changes that will enhance the salability of your home, thus increasing the price – and/or decreasing the length of time before a sale.

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The 3 Types of Buyer-Broker Contracts – Real Estate News and Advice – realtor.com

The 3 Types of Buyer-Broker Contracts By Craig Donofrio 3:24 pm ET April 7, 2015 Kirby Hamilton a home comes with a lot of responsibilities: You need to figure out the right community, the right size of house, the location, and especially the price. You have to negotiate with sellers and real estate agents. To cut down on the time it takes to do this, you might want to hire a real estate broker, otherwise known as a buyer’s broker, to represent you and help you find a home. The broker usually has an agent to help him or her with this task.

If you want to get a buyer’s broker, you’ll want to know about the three most common buyer-broker contracts and what they entail.

The basics  To avoid problems, the buyer and broker enter into a contract defining the legal relationship. This contract explains the duties and responsibilities of the parties and sets out exactly what services the broker will provide. There are several types of buyer’s broker real estate agreements representing the nature of the relationship between the buyer and the broker. These contracts can generally be provided by the broker in preprinted “fill-in-the-blank” forms adapted to the laws of the particular state.

Nonexclusive not-for-compensation contracts Please, Mr. PostmanSend me news, tips, and promos from realtor.com® and Move. Sign UpThis type of contract describes the broker’s duties and obligations to the home buyer, generally to be performed by the broker’s agent. It also outlines the relationship between the agent and the broker and the buyer’s responsibilities.This contract specifies there is no compensation to be paid to the broker. Other common components include that the buyer can retain more than one brokerage and either party can revoke the contract at any time.

Nonexclusive right-to-represent contracts  This arrangement defines the broker’s responsibilities to the buyer, the relationship between the broker and the agent, and the buyer’s obligations. It provides for compensation to be paid to the broker if the broker proposes the house the buyer decides to buy or otherwise represents the buyer.If another party pays a commission to the broker, this obligation is removed. Additionally, the buyer is typically able to buy a home through another broker as long as that home was not proposed by the previous broker. Usually these agreements may not be revoked except for specified reasons.

Exclusive right-to-represent contracts  This is the most common contract between home buyers and brokers. This agreement outlines the obligations of the broker, the broker-agent relationship, and the responsibilities of the buyer. What distinguishes this contract is the buyer may not retain more than one broker to assist him or her. It sets forth the commission amount to be paid to the broker, which is owed even if the buyer finds the house herself or another broker does so. But if another party pays the broker the commission, the buyer doesn’t have to.In comparison to nonexclusive contracts, which are usually for one or two months, exclusive agreements might run from several months to a year and generally cannot be revoked except for specified reasons.

Making the choice  The key elements of the agreement are broker exclusivity, contract duration, compensation, and the description of the type of home the buyer is seeking. There is no “correct” answer for every buyer, so you should compare options. Speak with friends, family members, and professionals who are familiar with the process, and consult different brokers to see what they offer and whom you feel most comfortable working with.

Source: The 3 Types of Buyer-Broker Contracts – Real Estate News and Advice – realtor.com

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Tom Ferry – Blueprint for Real Estate Success Video

BombBomb attended Tom Ferry‘s Blueprint event in Orlando, Florida. Included above is the opening to the event, in which he lays out:- closing 72 more transactions in the next 12 months- reasons for past failures and limitations- setting 3 top goals for the next 12 months- competition, domination, and confidence- why you need a blueprint, foundation, and adjustments to get there- how one small adjustment used over and over produces a huge change in end results- ideas to fill the gaps between here and there (getting into tougher mindset, developing a plan and goals worth fighting for, taking back control of your time, using better technology, having a team, developing better skills, and making real estate fun again

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real estate agent helping you

 Like it or not, the real estate agent helping you house hunt is usually working for the seller and is legally bound to try to get the seller the highest price.

But buyers no longer have to fend for themselves. You can hire a buyer agent to work on your behalf. U S News and World Report “ 10 Rookie home buyer mistakes to avoid” Ted Guarino May 07, 2010 http://money.usnews.com/money/personal-finance/real-estate/articles/2010/02/18/10-rookie-home-buyer-mistakes-to-avoid/comments

Source: Buyers Agents, Buyer Brokers, Buying a Home

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