It is nearly impossible to buy a home on your own, especially if you are a first-time homebuyer.
There are thousands of home listings to sort through, showings to schedule, weighing pros and cons of each home, identifying the ideal home for you, arriving at an offer price, writing the offer, negotiating a fair sales price, and getting through an inspection, loan review period, and closing.
Experts recommend hiring an exclusive buyer agent if you can find one in your area. Exclusive buyer agents focus their business on helping buyers only, not sellers, so they will owe their loyalty to you only. Since buyer agents help buyers 100% of the time, a buyer agent will have more experience and expertise with the issues important to buyers.
Once you find an exclusive buyer agent, you will want to meet with them and see if its a good fit.
You can outline your goals and the buyer agent will tell you if you are realistic in the current market and set a reasonable game plan for your purchase. The buyer agent will establish a game plan for you, including when you should should look for and make an offer on a home, what areas are perfect for you, and establish a budget based on your preapproval letter.
Once you feel comfortable with hiring a buyer agent, one of the first steps is to sign an exclusive buyer agent agreement.
An exclusive buyer agent agreement outlines the specific services that an exclusive buyer’s agent will provide to a homebuyer, as required by Illinois law. This contract sets out all of the obligations, expectations, and compensation details between the exclusive buyer’s agent and their client. It is important for potential buyers to read through and understand all of the terms outlined in this agreement before signing it.
The exclusive buyer agent agreement should state that the exclusive buyer agent will have exclusive rights to represent and advocate for the homebuyer throughout the process. This means they will assist in finding, negotiating, and representing their client during all stages of a real estate transaction, from searching for a property to closing. The exclusive buyer agent agrees to put their client’s interests first, and will not have a conflict of interest with any of the other parties involved in the transaction.
Under this clause, you agree to work only with the buyer and agency that you chose. This means you can’t turn around and ask another agent to show you a property or write a purchase offer for you. The contract will have a time limit (usually a few months) by which you are bound to your agent. If you purchase a home within that time frame you are obligated to pay the agent a commission rate that was agreed to previously. However, if you clash with your agent you are within your rights to request a different one from the agency. The agreement is with the broker agency, not the individual agent. This is the teeth of the agreement, read these provisions carefully and don’t be afraid to ask questions regarding your obligations.
The exclusive buyer agent agreement also includes details about how much the exclusive buyer’s agent will be paid for their services. Usually, exclusive buyer agents charge a fee for helping clients purchase their dream homes. In Chicagoland, this fee is usually 2.5% percent of the total sales price and will be outlined in the exclusive buyer’s agent agreement. This fee is typically paid out of the seller’s closing costs.
By signing an exclusive buyer agent agreement, you are establishing a relationship with your exclusive buyer agent that should be mutually beneficial to both parties. Your exclusive buyer agent will work hard to ensure that you get great value for your money and make the best possible decision when buying a home. An exclusive buyer agent agreement should be honored so that both parties can benefit from the relationship. Ready to hire an exclusive buyer agent?