Written by Shenetta Malkia-Sapp, Ph.D, REALTOR®
When embarking on the homebuying journey, especially for the first time, understanding the legal frameworks and agreements involved is crucial to a successful transaction. A key component in this transaction is the Buyer Agency Agreement. Having been enshrined in Maryland law since 2016, the Buyer Agency Agreement is a contract between a prospective homebuyer and a REALTOR®. Once this agreement is signed, the REALTOR® becomes your Buyer Agent, working for you. On the other side of the transaction is the Seller, who is represented by the Listing Agent.
Understanding the Buyer Agency Agreement
The Buyer Agency Agreement formally establishes the agent’s role as your representative throughout the home buying process. This agreement also clearly defines the compensation that the Buyer Agent will receive, which can be determined as a percentage, a fee, or some combination of both.
For prospective homebuyers, having a Buyer Agent, someone on your side, is foundational. Why? It secures an agent’s commitment to prioritize your interests above all others, including their own. Second, it offers transparency regarding the financial aspects of your relationship with your agent, allowing you to understand the services you are entitled to and the costs associated with those services. Finally, it offers peace of mind, knowing you have a professional bound to act in your best interests, navigating you through the complexities of home buying.
The Value of Working with a REALTOR®
A REALTOR® is not just a real estate agent but a member of the National Association of Realtors® (NAR), who adheres to a strict Code of Ethics. Working with a REALTOR® can offer numerous benefits, including a deep understanding of the local market, legal requirements, negotiation services, as well as acting as your fiduciary by looking at all the fine print and clauses that can impact the transaction’s bottom line.
While the written Buyers Agency Agreement has been Maryland law since 2016, a Buyer is not required to use the services of a Buyer Agent and can opt to “go it alone.” But Buyer beware: you’re better off having someone on your side, looking out for you and the home you’re about to buy for your family. A Buyer’s Agent makes sure the transaction works for you, the house works for you, and more. That is worth every penny of the value they bring to your transaction.
