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VALUING THE ROLE OF ABUYER'S AGENT Courtesy of

02In everyday terms, a buyer’s agent is a licensed real estate professional who assists buyers in finding a home.Even without a legal relationship, with recent industry changes, agents who are members of the NationalAssociation of REALTORS® must have a signed, written agreement with the buyer before touring a home.Much like listing agreements are entered into with sellers, the relationship between a buyer and the Buyer’sagent is usually formalized through a Buyer Agreement. The agreement can be exclusive or non- exclusiveand will specify the terms and conditions of the agreement.The agreement outlines the duties and obligations of both the agent and you, the buyer. It includes detailslike the duration of the agreement, the geographic area for your home search, the type of property you'reinterested in, and details of the agent’s compensation.Buyer Agency is a legal relationship between a prospective home-buyer and a real estate broker or agent,where the agent has legal responsibilities and represents the buyer's interests throughout the home- buyingprocess. This relationship can be confusing, as the agent is also referred to as the Buyer's Agent when noagency relationship exists. The agency relationship between a buyer and broker defines how the broker will represent the buyer's interests. Any agency relationship the broker has with the buyer is disclosed and documented in a separate disclosure and agreement.

03Fiduciary Duties: Your buyer's agent has fiduciary responsibilities to you to act in your best interests, withloyalty, confidentiality, and care. Your needs will be prioritized, and every effort made to negotiate the bestpossible outcome during your home-buying process.Property Search and Coordination: Your buyer’s agent will search for properties that meet your criteria toschedule and atiend all showings. They will provide insights into the local real estate market through theirexperience while securing available disclosures and communicating with the various listing agents to helpcollect as much information as possible.Expert Advice: A buyer’s agent provides expertise in a range of areas including market trends, neighbor-hood insights, property values, financing incentives, and pricing strategies. They can also interpret complexreal estate documents and contracts to ensure that proper protections and safeguards are in place for yourspecific situation.Negotiation: addition to negotiating the price, terms, and conditions of the sale, the buyer’s agent otiendirects and negotiates several other elements when dratiing offers for you. These aspects can be crucial inmaking an offer more appealing to the seller or ensuring that your interests are well-protected.

The goal is to make your home-buying experience smooth, informed, and successful, handling all aspects from offer to closing while protecting your interests.THE BUYER'S AGENT’S ROLE IN COORDINATING THE PURCHASE PROCESS INCLUDES:04•Identify and present suitable properties to buyer.• Conduct tours and prepare detailed analysis of specific properties upon request.• Assist buyer in preparing, negotiating, and securing a contract to purchase one or more properties.• Collaborate with any real estate licensee representing the seller to facilitate and completebuyer’s property purchase.• Provide additional services as needed and requested by buyer such as:◦◦◦◦◦◦◦◦Managing paperwork and documentation, ensuring all contracts protect your interests.Tracking timelines and deadlines throughout the process. Providing guidance on complex legal contracts. Coordinating and reviewing inspections, advising on findings. Offering support and advice as your advocate throughout the buying journey. Managing contractors for necessary repairs or improvements. Navigating the closing process, including final walk-through. Providing ongoing market information and recommendations.

05REASONS TO WORKWITH A BUYER’S AGENTExpert Guidance: A buyer's agent provides valuable expertise in navigating the complex home buyingprocess, ensuring you make informed decisions.Access to Listings: They have access to a wider range of property listings, including those not yet onthe market, giving you more options.Negotiation Skills: Buyer’s agents are skilled negotiators who can advocate on your behalf to securethe best price and terms.Market Knowledge: They possess in-depth knowledge of local market trends, helping you understandproperty values and neighborhood dynamics.Professional Network: A buyer's agent can connect you with trusted service providers, such asmortgage lenders, inspectors, and contractors.Time Savings: They can streamline the home search process, saving you time by filtering listings basedon your preferences and needs.Emotional Support: Buying a home can be stressful; a buyer's agent provides emotional support andguidance throughout the journey.Understanding of Contracts: They help you navigate and understand complex contracts and paper-work, ensuring everything is in order.Post-Purchase Assistance: A good buyer's agent will continue to support you even after closing,helping with any questions or issues that arise.Flexible Payment Options: While buyers are generally obligated to pay their agent's fee, many timesthe seller may offer buyer agent compensation, or the buyer can direct their agent to negotiate withthe seller to cover this cost.

When it comes to paying for a buyer's agent, there are several flexible options available, each with its own advantages and considerations. Understanding these options can help buyers make informed decisions based on their financial situation and negotiation leverage.1. Seller-Offered Compensation: Sellers often offer compensation to the buyer's agent as part of their listing agreement, which is common in many real estate markets and can be appealing for buyers since it eliminates out-of-pocket expenses.Under the recent industry changes, seller-offered compensation is no longer found in the Multiple Listing Service. Buyers’ agents must make this inquiry directly to the listing agent/broker to determine if it is beingoffered and how much.2. Negotiated Seller Payment:Even if the seller hasn't initially offered to cover the buyer's agent fee, this can be negotiated as part of the purchase offer. Buyers can request that the seller pay this fee as part of the overall deal. This strategy may be particularly effective in a buyer's market or if the property has been on the market for a while.3. Increased Sales Price:Another option is to negotiate a higher sales price that includes the buyer's agent fee. This allows the fee tobe rolled into the mortgage loan amount. While this means paying more over time due to interest, it can behelpful for buyers who are short on upfront cash but can manage a slightly higher monthly payment.06BUYER’S AGENTCOMPENSATION Notice to Buyer: A buyer agent’s compensation is fully negotiable and is not set by law.

074. Smaller Down Payment: Buyers who have saved up for a larger down payment might consider using aportion of those funds to pay the agent's fee in cash. This allows them to still purchase the home whileensuring their agent is compensated. However, it's important to consider how this might affect mortgageterms or private mortgage insurance requirements.5. Cash Payment at Closing: Some buyers may choose to pay the entire agent fee in cash at closing. This isoften the case when buyers have ample liquid assets but want to maximize their mortgage for tax orinvestment reasons.6. Combination Approach: In some cases, a combination of these methods might be used. For example, theseller might agree to pay a portion of the fee, with the buyer covering the rest, either through an increasedsale price or cash at closing.7. Lender Credits: In some situations, buyers may negotiate with their mortgage lender for credits to coverthe agent's fee, usually resulting in a slightly higher interest rate, which can help cash-strapped buyers.However, regional regulations and customary practices, as well as specific loan types like FHA or VA, mayhave rules affecting how these fees are handled.The best option for handling a buyer’s agent fees depends on transaction specifics, such as local marketconditions, the buyer's financial situation, and negotiation dynamics. Buyers should discuss options withtheir agent, financial advisor, or lender to find the most advantageous approach. While cost is important, a skilled buyer's agent offers invaluable market knowledge, negotiation skills, andguidance, potentially saving money and ensuring a smooth home purchase. As a dedicated advocate, thebuyer's agent works to secure the best outcome without the buyer worrying about out-of-pocket expenses.

Compensation Models It’s important to note that any combination of these strategies maybe used to find the best solution for your specific situation. The overall goal is to ensure you can pursue properties you’re interested in while fairly addressingthe compensation aspect.08

Avoid these examples that may unknowingly require you to pay your buyer’sagent out of pocket :It is always better to be accompanied by your buyer's agent when looking at a home. In the event it is notpossible, NOTIFY the For Sale by Owner, Builder’s Representative or Open House Agent holding the houseOpen that you have an agent and ask if they will honor that person if you were to look at the home now.Register your agents name in writing.Building your dream home is an exciting journey. Like a traditional home seller, builders budget for a buyer's agentcompensation, whether you have one or not. I will representyou, using my expertise to ensure you get the best deal and asmooth experience. Take advantage of my knowledge byallowing me to guide you through the process when visitingdevelopments.To optimize the experience, buyers are encouraged to have their agent accompany them on theirfirst property visit and to conduct all negotiations in good faith exclusively through their agent. Buyers should be aware that entering into multiple buyer's agent agreements foroverlapping periods could result in liability for additional fees. It's important for buyers to inform their agent if they are party to any active,exclusive, or non-exclusive buyer agreements.Exploring open houses or contacting listing agents on yourown is a great way to find out what you like and dislike. Justremember to register with the host agent and mention thatyou're working with me. Keep your enthusiasm in check, asthe host agent is representing the seller. It's wise to staydiscreet, as anything you share could be used in negotiations!If you find a For Sale by Owner property, let me know so I canhelp you maximize the process. I have the expertise to makecontact, negotiate, and ensure the entire transaction goessmoothly. We can help you save money in the transaction and,more importantly, save you the headaches of managing thepurchase on your own. 09Builder HomesFor Sale By Owner Contacting Listing Agents DirectlyPLEASE READ CAREFULLY

10THE ROLE OF PRE-APPROVALIN TODAY’S COMPETITIVEHOUSING MARKETMortgage pre-approval is a crucial step for home buyers that provides a clear picture of theirpurchasing power. It involves a lender conducting a thorough review and verification of a buyer'sfinancial situation, including credit history, income, assets, and debts. Upon completion, the lenderissues a writien commitment stating the maximum loan amount they're willing to offer, subject tocertain conditions. It is our policy to work with your lender to get a property specific pr-approval letter without amaximum loan amount but only stating that you are approved for an amount sufficient for you topurchase this home according to the terms of the offer. This letter will accompany the offer topurchase with the lender’s phone number in case the listing agent has any questions.This pre-approval letter gives buyers a significant advantage in the home-buying process, as itdemonstrates to sellers that they are serious and financially capable of following through with apurchase. Pre-approval typically remains valid for 60 to 90 days and helps buyers shop within theirbudget, streamline negotiations, and potentially close on a home more quickly. It's important tonote that while pre-approval is a strong indicator of loan eligibility, it's not a guarantee of final loanapproval, which will still require additional steps such as a home appraisal and final verification ofthe buyer's financial information.

11Budget Clarity: Pre-approval provides buyers with a clear understanding of their budget, helpingthem focus their search on homes within their price range and avoid wasting time on propertiesthey cannot afford.Faster Closing Process: Pre-approved buyers can close faster, having already completed muchof the financing ground- work, which can give them an edge in multiple-offer situations.Negotiating Power: Sellers are more likely to negotiate and accept offers from pre-approvedbuyers, confident they've secured financing and are less likely to face funding issues.Increased Confidence: Pre-approval gives buyers confidence in their purchasing power, allowingthem to make strong and competitive offers with certainty.Strategic Planning: With pre-approval, buyers can strategically plan their home search and makeinformed decisions about property selection, offers, and negotiations.Avoid Disappointment: Pre-approval helps buyers avoid disappointment by preventing themfrom falling in love with homes they cannot afford or losing out on a dream property due todelays in securing financing.Streamlined Process: Pre-approval streamlines the home buying process by identifying andaddressing potential financing obstacles upfront, ensuring a smoother transaction.Second Opinion: We recommend getting a second opinion from another trusted local lender tocompare terms and potentially secure better conditions, given the many variables beyond justrates, points, and fees.

NINE STEP PROCESSGET PRE-APPROVEDORDERINSPECTIONAPPRAISAL OPEN ESCROWSCHEDULETHE MOVEMEET WITHYOUR AGENTMAKE ANOFFERFIND YOUR HOMECLOSE ONYOUR HOMEHome Buying JourneyHave a question? Give Deah a call today at 425-407-2800Discover issuesNegotiate repairsYour lender willorder an appraisalto determine valueMeet with a lenderPrepare your creditSet a budgetCall a movingcompanyStart packingTitle will send you arequest forinformationDiscuss budgetResearch AreasSet wants and needsTour homesAdjust criteria ifnecessaryNegotiate if neededFinal walk-throughSign ClosingDocumentsReceive KeysHave propertyinspectedWork with your agentto come up with offerprice

13THIS LIST COVERS THE KEY ELEMENTS TYPICALLY FOUND IN A BUYER'S AGREEMENT,HELPING TO ESTABLISH CLEAR EXPECTATIONS AND A FORMAL WORKING RELATIONSHIP BETWEEN THE HOMEBUYER AND THEIR CHOSEN REAL ESTATE AGENT.••••••••••••••••••••Duration of the agreement Geographic scope and property types covered Agent's duties and responsibilities Compensation structure and terms Exclusivity clause (if applicable) Fair housing statement Buyer's obligations and expectations Representation type Retainer fee or other upfront costs (if any) Protection period details Termination conditions Services provided by the agent Commitment to adhere to fair housing laws Confidentiality clauses Communication expectations Process for reviewing and understanding the agreement Provisions for modifying or canceling the agreement Explanation of agency relationship and loyalty Details on how disputes may be resolved Clarification on working with other agents or attending open houses

14Thank you for exploring this guide on the role of a buyer's agent. I hope it has given you valuable insightsinto how I can assist you in your home buying journey.I invite you to meet with me in person to discuss your specific needs and preferences. This is a greatopportunity for us to get to know each other better and for me to understand what you're looking for in ahome, including your desired location, features, and budget.During our meeting, we can also talk about your financing options and how I can help you navigate theentire buying process, from negotiating the best terms to coordinating inspections and managingtimelines. My goal is to ensure you feel informed and confident every step of the way.Let’s create a personalized strategy that focuses on your unique situation. I am committed to providing thesupport and guidance you need to make your dream of home-ownership a reality.Please reach out to schedule our meeting at your convenience. I look forward to partnering with you andhelping you find the perfect home. Your journey to home ownership is important to me, and I’m excited toget started! Feel free to contact me via phone or email to set up a time that works for you.