By Stuart Snider
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21 Dec, 2023
Real estate transactions are among the most significant and complex transactions most of us will undertake in our lives. With so much at stake, it's crucial that you have adequate representation when buying a home or commercial property. As a potential buyer, you need to understand the concept of real estate buyer representation. In Michigan, buyer representation is a legal agreement between you and a real estate agent in which the agent represents your interests exclusively during the home buying process. In this blog post, we’ll discuss the key aspects of buyer representation and why it's important to have it when making a purchase in Michigan. 1. What is Real Estate Buyer Representation? Real estate buyer representation is a legal agreement that ensures that a real estate agent acts solely in the buyer's best interest. When you sign a buyer representation agreement, your agent owes you loyalty, confidentiality, accounting, and care. The agent will typically act as your advisor and advocate during the home buying process, with the goal of helping you find the perfect property and negotiate favorable terms. 2. The Benefits of Buyer Representation Having an exclusive buyer's agent on your side can make the home buying process smoother, more efficient, and more successful. Working with an agent with a fiduciary duty to you means that they will only advise you on properties that are a good fit for your needs. Your agent will also help you navigate the complex process of home buying, including identifying properties, scheduling showings, negotiating terms, and closing the deal in a way that's in your best interest. 3. The Legal Requirements for Buyer Representation in Michigan Real estate buyer representation is governed by Michigan law. To form a legally-binding agreement, both you and your agent need to sign a contract, agreeing to the terms of the representation. The contract should lay out the scope of the agent's services, the duration of the agreement, and the fee structure. It's important to read the contract carefully before signing and ask your agent any questions you may have about the terms. 4. How to Find a Buyer's Agent in Michigan If you're considering purchasing real estate in Michigan and want an exclusive buyer's agent to represent you, there are several ways to find an agent. You can ask for referrals, search for agents online, or contact a local real estate agency. When you're interviewing potential agents, make sure to ask about their experience, credentials, and track record of success. 5. Understanding the Costs of Buyer Representation The costs of buyer representation agreements can vary widely depending on the terms of the contract. Typically, agents are paid a percentage of the price of the property, which is usually split between the buyer's and seller's agents. The exact percentage can be negotiated between you and your agent before you sign a contract. When it comes to real estate transactions, having an advocate on your side can make all the difference. Buyer representation can help ensure that your interests are protected during the complex process of purchasing a property in Michigan. By understanding what buyer representation is, its benefits, and how to find and work with an agent, you can make a more informed decision when it comes to buying your next home or commercial property.