Working With a Buyer's Agent on Maui
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The process of buying a property on Maui, or anywhere else in the United States, is getting a new wrinkle this August, a mandatory buyer representation agreement. Due to the recent NAR settlement, buyer representation agreements are now a required part of the process of purchasing real estate with an agent.
There are many misconceptions out there about how this will work in practice. It's actually pretty simple and may be a good thing for the business, keep reading to learn more.
What's a Buyer's Representation Agreement?
Buyer representation agreements aren’t a new document. They have previously existed as an optional part of the process for agents and buyers, they just weren’t a required part of the process as they are becoming now. I have personally never used them. My philosophy has been that I will demonstrate my value while working on behalf of my buyers to the extent that I wouldn’t need to formalize our relationship with this document.
I wanted to demonstrate my value at every turn and have my clients feel that I was more focused on securing their property than securing the right to represent them. That has worked very well for me, representing over 100M in sales over the last 4 years.
Now, as we will all be required to use them, its important to understand the value a buyer representation agreement actually has for both buyer and agent.
How a Buyer Representation Agreement Benefits Buyers and Agents
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Just like with any other professional service providers like dentists, doctors, attorneys, mechanics, contractors, etc, there exists a wide range of quality between the best and the worst in any given business. A bad mechanic can make your vehicle worse, a bad attorney can lose your case, and a bad contractor can ruin your home.
On the same note, a bad real estate agent can actually impede you from achieving your buying or selling goals while a great agent can make the process enjoyable.
Real estate is the most valuable asset individuals buy and sell and the process inherently presents challenges, please be discerning before signing this agreement with any agent, including myself, and make sure you are getting the level of service you deserve.
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Why This New Rule is Good For Buyers
Previously, many buyers didn’t give a lot of consideration to who they were working with and could find themselves working with an agent that didn’t meet their needs. Just like stopping into the first dentist's office you see rather than looking up their reviews online first. Now, buyers will be educated further and encouraged to interview their buyer’s agent to determine if they are the right fit.
“Due to the old NAR commission structure, it was difficult for homebuyers, especially, to determine who would be an effective Realtor to help them,” said Brian Mollo, CEO of Trusted House Buyers. “While on the listing side, it was a bit less confusing as third-party platforms like Zillow would help consumers see the sales data for individual agents ... the buy side of the transaction was always a bit shrouded. In fact, the vast majority of real estate agents have been coached to focus on listing homes, essentially ignoring buyers.”
Buyer’s agents will also be more incentivized to elevate the level of their training and sharpen their skills to compete for business resulting in a better overall experience for consumers.
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What a Buyer's Agent on Maui Should Be Doing For You
First and foremost, I want to be understanding of our clients’ perspective on the buyer's representation agreement and will allow any client to opt out of our agreement if they are not satisfied with our progress in the first 30 days. My goal is to continue to earn your business along the way.
I’m proud of the level of service and experience I bring to the table for my clients. While I represent both buyer and sellers, the process of representing a buyer is unique and requires many elements.
The best first step is always for us to establish a relationship. Usually, a new client will call me, email me, send a message on my website, etc with an interest in a specific property or area. We will have a conversation about that property, the market, and how my services work. You should know that I am dedicated to providing the absolute highest level of service to all of my clients. Other things I will do for you include, but are not limited to:
- Coordinate as many showings as necessary, either in person or via FaceTime/Zoom
- Gather additional information about each property
- Negotiating price, commission, and terms when presenting the offer to the seller's agent
- Ensuring the security of your earnest money deposit by meeting all contract timeline contingencies
- Scheduling and attending the home inspection, then negotiating for repairs
- Communicating regularly with escrow, the seller's agent, lenders, etc throughout the process
I am available to my clients virtually 24/7 when necessary and I am personally committed to the success of my clients. I really hate to lose! If we are pursuing a property, I will do everything in my power to make sure we are able to secure it and don't overpay in the process.
I can't spill all of my hard earned secrets here, but I have a variety of strategies with the purchase contract that have resulted in my clients offers being selected over higher offers.
My Guarantees To You As Your Dedicated Buyer’s Agent on Maui:
Working with me you will receive the highest level of service possible in the business. This means going above and beyond on every deal. To do this I will also:
- Connect you with my team of vetted local experts for everything you will need including financing, escrow, tradespeople, landscapers, pool professionals, cleaners.
- Guarantee exceptional communication from start to finish and beyond closing. If there is one word I would like to be described as in my capacity as a Realtor, it is "Responsive". I’m interested in a lifetime relationship as your personal real estate professional, I am not a transactional person. Anything I can do to make the process of buying or owning a property easier, I'm here for it.
- I will never be pushy and will always be patient throughout the process. Buying a property is a very important decision and I will never rush the process for the sake of a sale, I would rather you not buy any property than buy the wrong property.
Questions to Ask Your Buyer’s Agent:
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How many buyers have you previously helped? Have you helped buyers purchase in this area before?
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Can you provide testimonials from previous clients? See mine here.
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What are some of your biggest wins for clients from a negotiation perspective? What are your negotiation strategies?
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What happens if we look at 30 properties and never end up buying anything?
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How will you handle a scenario where the seller is not paying a buyer’s agent commission?
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Why shouldn’t I just contact seller’s agents on my own to get a better deal?
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When are you available?
What Happens When a Seller Isn’t Paying a Buyer Agent Commission?
When we agree to a commission on the buyers representation agreement, in this instance let’s say its 2.5%, the new industry average, we will negotiate with the seller to cover the cost of this on the purchase contract. Since we are in such a heavy buyer’s market on Maui, 95 percent plus of sellers are still offering guaranteed buyer agent commission and are unlikely to see this change until we have a large market shift, which could take years. If the seller is only offering a 2.0% commission, we will adjust the offer price to include a credit to the buyer of .5% to cover the commission costs.
Buyers have the upper hand in this current market where higher rates and higher inventory has restored the balance of power. Working with the right agent who understands the market, how sellers think, and how to get the best results can make all of the difference in achieving your real estate goals.
Get In Touch With Evan!
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Evan Harlow is an award-winning Realtor on Maui ranking in the top 1% of Coldwell Banker agents worldwide. Evan has the expertise, experience, and work ethic to help you achieve your real estate buying and selling goals. We promise exceptional service and support from the beginning of the process through closing and beyond. See what our clients are saying on Google.
Posted by Evan Harlow R(S) 82003 on
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