What You Should Know About Seller's Agents as a First Time Home Buyer

A home purchasing deal will more than likely involve a seller's agent. First time homebuyers should realize that a seller's agent, or a sub-agent, should have the seller's best interest in mind when doing transactions. In other words, a sub-agent is hired by the seller to forge a deal with a buyer.

Different states have varying regulations on the practice of seller's agents, but they have common responsibilities and restrictions as defined by national laws. According to Ilyce Glink, author of the book '100 Questions Every Home Buyer Should Ask', homebuyers should thoroughly review the agent disclosure form before signing under the services of an agent to understand the scope and limitations of the agent's work. Generally, a seller's agents' responsibilities and restrictions include:

A seller's agent can give you information regarding similar homes in the area. This information is called comparables or 'comps' and is a listing of homes that have similar price, size and area, and age. Comps can include homes that were recently sold or are currently in the market. This information allows a homebuyer to have a basis of comparison to ascertain the value of a home.

The seller's agent cannot tell you which home to choose when you are still deciding. Even though it's the seller's agent's job to sell you the home they are commissioned to sell, they do not have a right to 'push' their home over another in question. If you like two homes and the broker is working with both sellers, they cannot persuade you to purchase one over the other; the decision is ultimately yours to make.

The seller's agent cannot point out defects in the home. The seller broker cannot say anything that would influence your decision to purchase, or not purchase the property. Any material hidden defects can be disclosed, but you will need to conduct your own research to find out if the home is in good condition.

The seller's agent cannot provide tips regarding the best offer amount for a home. It would be beneficial for you as a buyer to get inside tips from the seller's agent but they are legally bound not to provide confidential information to buyers.

A seller's agent has the right to ask you for referrals. Most sellers' agents run their own businesses and are likely to ask you for referrals. It is up to you to decide if a seller's agent is worth referring to your fiends and relatives.

In the end, a seller's agent is essential in making the homebuying process easy for both parties. Just bear in mind that you still have to investigate the property and conduct your own market study and even work with your own agent for you to acquire a home that meets all of your needs.

Author: Alexandria P. Anderson specializes helping people to find and purchase Eden Prairie MN real estate, as well as homes in Eden Prairie for her realty clients.