The Buyer's Guide: What Does a Buyer's Agent Do?
/With the latest N.A.R (National Association of Realtors) lawsuit, the value of a buyer’s real estate agent has come into question. For me, while I think it is important to share my value to my clients, I find it best for me to show them and then they can see the value for themselves. However, with the new laws potentially going into effect in July 2024 that require buyer’s to sign a buyer broker agreement upfront, I wanted to share with you a compilation of tasks that the Berkshire Hathaway team in La Jolla came up with that outline the ways in which a buyer’s agent supports you as a client.
Prior to Meeting a Client, Ongoing Realtor Activities
Keep updated on the latest market analytics by reviewing data reports weekly
Connecting with lender on ongoing basis to understand rates and market forecasts
View multiple properties weekly to better understand the values of what is available in each neighborhood
Visit open houses to build relationships with agents within the area, and to understand property values
Attend weekly real estate broker association meetings to keep updated on inventory, latest real estate laws, and networking with other agents to build relationships
Attend weekly ongoing trainings including but not limited to the real estate market forecasts, updated laws, negotiation tactics, updates to contracts, rules, amendments, etc.
Finding a Property
1. Interview Buyer
2. Review and Sign Buyer Representation Agreement and Agency Disclosure Agreement.
3. Create a Buyer Net sheet of cost.
4. Arrange for Lender to /speak with Buyer to qualify maximum price Buyer can pay.
5. Obtain a pre-qualification commitment from Lender to leverage the ability for Buyer’s offer to be accepted by Seller.
6. Call Listing Agent to arrange appointments to show buyer properties that meet Buyers’ criteria.
7. Set up a ongoing email of new listings, photos and data to be sent to buyer that meet Buyer’s criteria
8. Send a weekly written request to Agents in our office for information for any off market or Coming Soon properties that might meet buyer’s criteria
(note: we have a very large successful office w/more potential for off market property)
9. Contact agents from other companies to inquire about any homes they are or have listed that might meet buyer’s criteria.
10. Send email request to other agents in our company for a property meeting buyer’s criteria via our SDConnect online platform.
11. Send letters of inquiry to Seller’s who might be interested in Selling for homes that might meet the buyer’s criteria.
Make an Offer
12. Prepare a comparative market analysis to assist Buyer in determining price.
13. Review the differences of the properties in the analysis with buyer.
14. Review and explain details of the contract with the buyer.
15. Write the offer *Execute Documents to enable closing (see 26 – 33)
16. Contact the listing agent and make arrangements to deliver the offer.
17. Prepare and convey counteroffers, amendments or acceptance to the buyer.
18. Negotiate Seller’s payment of Buyer’s agents commission, if commission not offered by Seller
19. Send copies of the contract and all the addendums to the Escrow company.
20. Notify the Lender that an offer has been accepted.
21. Contact the Title Company and let them know that an offer has been accepted.
22. Educate buyer about Security/Fraud Alert to assure buyer’s deposit is securely sent to escrow.
23. Prepare a timeline of Buyer Contingencies and share with Buyer.
24. Calendar and follow up on all deadlines.
25. Advise the buyer of the many documents that will be sent to them by Title, Escrow, or their Lender and ask them to contact you if they have any questions about these documents prior to signing and returning the documents.
26. Provide the buyer with HomeServices Insurance Contact information to enable insurance of the property.
Execute the Following Documents and Send to Buyer to Sign Upon Writing Offer or During Escrow to Enable Closing
27. Buyer’s Agent to Buyer (Agency Agreement)
28. Seller’s Agent to Seller (Agency Agreement if BHHSCAL represents Seller)
29. Confirmation of Agency
30. Residential Purchase Agreement and Joint Escrow Instructions
31. Buyer Advisory
32. Seller Counteroffer, if applicable
33. Buyer Counteroffer, if applicable
34. Designated Electronic Delivery Address Review
35. California Consumer Privacy Act Advisory
36. Possible Representation of more than one buyer/seller Disclosure and Acknowledgement
37. BHHS Affiliated Business Arrangement Disclosure and Acknowledgement
38. BHHS Wire Fraud
39. BHHS Local Area Disclosure (San Diego County)
40. Seller Non-Agency, if applicable
41. BHHSCP Mediation & Arbitration Agreement, if applicable
42. Anticipated Broker Compensation Disclosure.
43. Seller Payment to Buyer’s Broker SPBB (if negotiated).
44. Fair Housing Discrimination Advisory, Disclosure and Addendum
45. Statewide Buyer and Seller Advisory
46. Non-Contingent Advisory, if applicable
47. Trust Log Entry and Registration of deposit check, if applicable
48. Contingency for Sale of Buyer’s Property, if applicable
49. Addenda: Back up offer, Septic, Well, Monument, if applicable
50. Short Sale Addendum, if applicable
51. Advisories: Probate, Trust, Short Sale, REO
52. Representative Capacity Signature Disclosure, if applicable
53. Option Agreement (Attorney Review Required), if applicable
54. Withdrawal of offer (if applicable)
55. Hire a Transaction Coordinator to manage entire transaction process with all parties (listing agent, escrow, title company, insurance, lender) and upload all documents in BHHSCAL secure online portal.
Facilitate and Coordinate Escrow Process & Timely Removal of All Contingencies
56. Open Escrow and send all contracts and obtain Escrows Acknowledgement of RPA
57. Facilitate and coordinate deposit sent to Escrow by Buyer
58. Follow up and assure Escrow’s General Provision and all Addendums are sent to Buyer
59. Order Preliminary Title Report sent to Buyer
60. Follow up to Assure FIRPTA or Qualified Substitute obtained by Escrow
61. Receipt for Increased Deposit & Liquidated Damages (if applicable)
62. Follow up with Escrow to assure HOA documents ordered
63. Follow up with Short Sale Agent/Lender for Approval Letter (if applicable)
Obtain from Seller or Seller’s Agent, Review with Buyer and Have Buyer Sign
64. Seller Transfer Disclosure Statement
65. Seller’s Agents Visual Disclosure Statement
66. Seller Property Disclosure Statement
67. Smoke Detector and Water Heater Compliance Report
68. NHD Natural Hazards Disclosure Statement
69. Acknowledgement of Receipt for NHD
70. Environmental/Lead Hazards Booklet
71. Fire Hardening and Defensible Space Addendum and Advisory
72. Water Conserving Plumbing Fixtures & CDM (if applicable)
73. Solar Advisory & Questionnaire (if applicable)
74. Provide a list of inspectors for Buyer, and schedule appointments (if applicable)
75. Meet Inspector at the Property
76. Complete the Buyer’s Inspection Advisory
77. Discuss Buyers needs and wants
78. Negotiate repairs, credits, or reduction in purchase price (if applicable)
79. Book an appointment for a walk-thru of the Property
80. Oversee all deadlines are met and contingencies are removed