A lot of Minnesota first time homebuyers end up hiring a sub-agent otherwise known as a seller's realtor and it is important to understand that these real estate agents are working on behalf of the vendor, not the buyer. Seller's real estate agents are employed to work for the seller and bring the home buyer to the offer, but they will work on a commission fee and have specific rights and responsibilities to the buyer.
The regulations vary from one state to another, but there are specific things they can't do according to national law. The writer of '100 Questions Every Home Buyer Should Ask' encourages all home buyers to review all the real estate agent's disclosures and forms carefully to understand exactly what kinds of services they will be offering; if you don't understand anything at all, do not put your signature on the form. It's also essential to understand the key things that a seller's broker can and can't do for you:
The seller's agent can give you detailed pricing listings of comparable houses in the area. These are often called 'comps' and are a collection of similar houses in the neighborhood, listing information and their list prices. This information makes sure that you are not offering, or being given, an irrational rate when it's time to negotiate.
The sub-agent can't inform you which house to choose if you are still choosing. Even though it is the sub-agent's job to sell the home they're commissioned to sell, they do not have the right to 'push' their home over another in question. If you like 2 homes and the broker is performing with the two sellers, they can't persuade you to purchase one over the other; the decision is definitely yours to make.
The seller's agent can't point out defects in the the home. The seller's agent cannot mention anything that would influence your decision to purchase, or not purchase, the house. Any material hidden flaws may be exposed, but you will need to conduct a research to find out if the home is within good shape.
The sub-agent can't give tips on the ideal deal for the home. It can be attracting to inquire the vendor how much you should pay for the house, however they can not lawfully offer you this information anytime on your conversations. The sub-agent has certain responsibilities to the seller, and this information may possibly hinder on their working relationship.
The sub-agent may ask for recommendations. Many sub-agents are usually independent entrepreneurs and are constantly seeking for new customers. They do have the right to request you to recommend them to your family members or friends, and they will do their best to make your homebuying experience a great one.
When you're working with a sub-agent being a first time buyer, it is important to keep in mind that they're in the business to help make the house buying process as easy as possible. It doesn't always mean that they've got your best interests in mind, so it is necessary to conduct a research on the house and also hire a professional realtor along with the sub-agent.
Author and Realtor Alexandria P. Anderson helps clients to find and purchase Plymouth MN Real Estate as well as Minnesota Homes for Sale.