These requirements insure that the REALTORis knowledgeable in the laws and practices of buyer representation.

Many agents recognize the value of buyer agency and so-designate themselves when working with buyers. They are not, however, necessarily trained in this area.

As a buyer, it is to your advantage to have a buyer's representative assisting you in purchasing property. A buyer's representative will:

• broaden your property search to include For Sale By Owner, foreclosures, and more
• help you keep your goals in mind when viewing property
• provide you with some neighborhood and community information
• show you homes above your price level knowing the seller may agree to a lower price
• provide you with information about the sales history of a home
• conduct an up-to-the minute market analysis (CMA) to determine fair market value when you make an offer
• determine if there is other interest in the property
• request the opportunity to present your offer directly to the seller, taking advantage of the benefit of a face-to-face meeting
• offer you names of qualified professionals such as home inspectors, real estate attorneys, mortgage officers and contractors, and
• keep your confidential information confidential forever. For example, if in 3 years you contract with another real estate professional to sell your home, your buyer agent cannot leverage your confidential information on behalf of a buyer interested in your home.

There are also intangibles associated with buyer representation: Buyer-clients' needs come before those of buyer-customers'.

Because a real estate salesperson works on commission and 'time is money', and because a Buyer Agent works harder for the client, you should be psychologically and financially prepared to buy when you commit to an exclusive buyer contract. This includes clearing up credit problems and having mortgage pre-approval.

Because you are in an exclusive relationship, it is critical that you do not do business with other real estate salespersons. Be sure to notify your agent if there is a property you would like to see, rather than attend open houses alone or contact agents listed on For Sale signs. This also applies to 'For Sale By Owner'.

When you sign an 'Exclusive Right to Represent Buyer Agreement', you specify a contract duration (90 days, for example) and agree that a certain percentage of the sale price will be paid to your agent/brokerage (2.5%, for example).

• Tip: You should not have to pay a signing fee to establish this relationship and should hesitate before signing an open-ended contract.

In most cases, the Buyer Agent's fee is paid through the proceeds of the sale, just as it is paid to a seller's agent. The percentage paid to both seller and buyer agents is set by the property's listing broker. This information should be known to the Seller.

If the property you wish to buy is offering 2.5% to a buyer's agent (as in our example), then there is no cost to you. More often than not, this is the case.

If, for example, only 2% commission is offered to the Buyer Agent, then you are responsible for .5% of the proceeds of the sale. Frequently, this disparity is addressed by writing the following into the terms of your offer: "This offer conditioned upon the buyer agent receiving .5% of the sale price from the proceeds of the sale." The Seller, however, may reject this term. In that case, you are obligated to pay the difference if you wish to proceed with the transaction.

• Note: Approximately 92% of sellers agree to this term!

There are other circumstances under which you will be obligated to pay the full agreed-upon percentage:

• if you purchase property during the time of the agreement without the services of your buyer agent, or
• if you purchase property shown to you by your agent during the terms of your agreement within six months of contract termination

There aren't many. At worse, you may not feel that your agent is doing her job, in which case you can speak to the office manager who will intervene to ensure your satisfaction.

To avoid this situation, it's advisable to get to know your agent before signing the agreement. But keep in mind that, working as an agent of the seller, your buyer-agent-to-be may not seem as forthcoming with information as you'd like. That's because it's the law -- the seller's agent works on behalf of the seller.

Anyone may hire a buyer agent, but members of certain groups should give it more consideration.

Those unfamiliar with purchasing residential real estate in the current market should consider having an advocate. This includes:

• first time buyers
• relocations from other states or Massachusetts market
• anyone who hasn't bought real estate locally in a long time
• 'Downsizers', particularly those interested in the senior housing market

and / or

Those who share confidential information with an agent such as:

• a relative or good friend
• a seller who is now a buyer and using the same agent for both transaction

One day soon, it will be. It's a common practice in many other states and little by little, practice in Massachusetts is changing. A January 2003 law has helped bring this about. This new law states that listing brokers must notify their sellers about:

• vicarious liability, and
• commission being offered to participating agents.

In addition, buyer-clients have more value to the Seller because they are motivated and qualified.

The law of 'vicarious liability' states that the Seller is liable for the misdeeds or misstatements of his agents, including sub-agents. The Seller is not, however, vicariously liable for the misdeeds or misstatements of buyer representatives. On those grounds alone, the Seller should want to encourage buyer representatives to bring clients.

Until January 2003, listing agents were not obligated to disclose commission offered to other agents with the Seller. As a result, the Seller had no idea that buyer representatives could receive less commission for a sale, therefore reducing the property's marketing reach. Now that sellers must be informed, they are likely to protest any reduced commission offered to a Buyer Agent.