What is a buyer's agent in Georgia? | home buyers agent FAQs

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What is a buyer's agent in Georgia? Buyer's Agent FAQs
by Richard Weisser

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A buyer's agent represents the interests of a buyer (purchaser) in a real estate transactions. Typically, the listing agent represents the seller. Why would you want the seller's representative acting on your behalf in such an important proceeding? Especially when the buyer's agent is usually not paid by the buyer?

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Do I need an agent when buying a house? No, not at all. But there are few legitimate reasons for not using an agent when purchasing property. In most cases, the seller is paying the commission anyway, and if there is money to be saved, the seller will generally want to pocket the money his or herself. At best, you would be negotiating for a half of a side (Buyer and seller side of the commission), or 25% of the total market commission. At worst, there is no savings at all. Would you risk spending hundreds of thousands of dollars on a property without representation?

What is a Buyer's Agent in Georgia, and how does a homebuyer assure that he or she is being represented by their real estate agent? There is quite a bit of confusion about this subject in the state of Georgia, but the answer to the question is really very simple! In Georgia, an real estate agent cannot, by law, represent you unless you have entered into a written agreement for agency. Many customers are annoyed by the fact that an agent will ask them to sign an agreement before showing houses, but in reality, the agent is acting in your best interest. Consider these facts:

Would you have business dealings with anyone you know is breaking the law?:

The Official Code of Georgia, 10-6a et al seq. states that no one is represented as a client by an agent in a real estate transaction without first entering into a written agreement defining the relationship between a real estate agent and a client. The law goes on to say, that if no written agreement is executed, the agent may only perform ministerial duties to the customer. That means that the agent cannot, by law, offer you any advice other that performing limited filling out of forms and offering lists of vendors. As an example, if you have not signed an agreement with your agent, and he or she shows you a house and says "I think we should offer $10,000 less than the asking price," the agent has broker Georgia License and Agency law and is subject to sanctions.

What if I sign an agreement but decide that I don't like the agent?

If your agent is a Realtor® and used the Georgia Association of Realtors standard agency agreement, either party may opt out of the deal by simply notifying the other party in writing. You may, however, be obligated to the agent for any homes or property that you have already viewed with the agent. That's only fair, as the agent did his or her job and found you the property that you want to purchase!

How much will a buyer's agent cost me?

If you are looking at property that is listed on either Georgia MLS or FMLS, the seller has already agreed to pay the agents commission for you. The only time that you would ever have to pay your buyer's agent, would be if a property is not listed and the seller will not agree to pay commission. If this service is essentially free to you, why in the world would you choose to not be represented?

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