Buyer’s Agent Responsibilities

There are many moving parts to a full Real Estate transaction. These are some items that we manage so you don’t have to.

REPRESENTING BUYERS

  • Provide fiduciary responsibilities to our buyers through agency laws
  • Understanding Real Estate contracts and contract law
  • Stay on top of market trends, statistics and changes to bring valuable information to our buyers
  • Manage all details of the transaction protecting buyers’ timelines, deadlines and contingencies
  • Financial & time investments up front for researching and viewing properties for sale
  • Protecting buyers’ interests so they are not in default of contract
  • Handling potential issues that may arise from liabilities on the premises
  • Understanding all state and federal Real Estate, Equal and Fair Housing laws
  • Understanding ongoing changes to tenants’ rights and applicable laws
  • Manage buyers’ responses to health issues, expectations, disappointments, feelings and moods as they change
  • Manage family, partner, and other influential relationships including challenging emotional experiences
  • Manage the difficult transitions between simultaneously selling and buying by protecting buyers’ interests
  • Manage sensitive personal situations including marriage, divorce, bankruptcy, job loss & transitions
  • Balance the fact that sometimes we have multiple clients that we have a fiduciary duty to that pursue the same property.
  • Work outside of normal working hours because ‘time is of the essence’
  • Work on short notices because ‘time is of the essence’
  • Work on the contingency that the transaction will close as competing clients must agree on the terms and conditions
  • When transactions fail, start over from the beginning while encouraging positivity and managing buyers’ emotions
  • Consult with buyers to learn their goals and interests
  • Discuss Agency Relationships and Buyer Broker Agreements
  • Qualify buyers with their abilities to purchase
  • Discuss the home buying process and funnel process
  • Discuss the purchase contracts and addenda
  • Discuss all buyer contingencies and protections
  • Consult with any listing agents to try to gather as much information to position the buyers in the best light
  • Discuss strategies to craft the best offer specifically for the sellers and property that buyers are interested in
  • Discuss offer strategies to protect buyers interests taking into consideration the proper process of paying for inspections and appraisals
  • Consult with buyer’s lender to ensure the proper verbiage is used in crafting offer for buyers
  • Advised by lender to take into account any important and confidential information to protect buyers interests
  • Consult with lender to understand buyer’s lending guidelines and restrictions
  • Consult with buyer over their lender’s estimate
  • Search through the many properties in buyer’s given criteria to find the most suitable for buyers
  • Network with other agents to identify off market properties or coming soon pocket listings
  • Tour potential properties with buyers
  • Perform a market analysis on interested property to ensure value
  • Research property’s ownership and deed type
  • Research property’s public record information for lot size and dimensions
  • Research and verify legal description
  • Research property’s current use and zoning, deed restrictions
  • Consult with surveyor if needed
  • Verify legal names of owner(s) in county’s public property records & deed of trust or contract
  • Craft offers with respect to the fiducial responsibilities to the buyer’s interests
  • Understand the many lending guidelines ahead of time that would prohibit buyers to purchase certain properties
  • Discuss the specific items that appraisers are looking for that would be problematic for buyers
  • Discuss certain limitations that are revealed through CC&Rs that may be burdensome to buyers
  • Ensure that any credits from the seller are allocated to the buyer and not wasted
  • Ensure the listing side has all signed documents and signed disclosures
  • Ensure buyers have submitted proper earnest money so they are not in default
  • Research any geotechnical, slide or flood plain issues
  • Advise researching against any insurance CLUE reports
  • Schedule all inspections including full home, pest & dry rot, termite, lead based paint, sewer or septic, asbestos, radon, mold, foundation & well system inspections, if applicable within the timeframes allowed
  • Assist all inspectors to fully inspect all areas of concern for the buyer
  • Advise buyer on further specialty inspections 
  • Ensure seller’s compliance with some inspection processes
  • Receive all property disclosures and consult with buyer any areas of concern
  • Negotiate any repair issues on buyer’s behalf
  • Confirm all repairs are completed by licensed & bonded contractors as applicable by law
  • Understanding Oregon Contractor Control Board rules and laws within Real Estate transactions
  • Confirm buyers are satisfied with repairs through reinspection process
  • Examine preliminary title report to ensure there are no clouds unacceptable to buyers
  • Coordinate the appraisal inspection
  • Advocate for the buyer if there are any lender or appraisal issues
  • Manage any transactional details for land sales contract, if applicable
  • Prepare a utility sheet for buyers information
  • Ensure buyer’s insurance agent has issued insurance binder
  • Ensure seller is not a foreign investor to protect buyers potential tax penalty
  • Consult with buyer regarding the closing disclosure documents
  • Schedule closing appointment with buyers and escrow closing officer
  • Ensure the closing statement is accurately calculated for buyer
  • Ensure buyer brings in the correct amount of funds at closing and in the proper form
  • Guide buyer to location of signing and preparing them for the expectations for closing
  • Present utility information sheet to buyers
  • Present keys and possession to the buyers
  • Ensure sellers leave all fixated and personal property included in the transaction for buyers
  • In the case of a rental, ensure the rent rolls and deposits have been transferred to the buyer
  • If rental, ensure sellers understand current landlord/tenant laws to ensure proper transfer of possession
  • Ensure the property is in expected condition upon possession
  • Follow up with buyers to ensure there are no surprises and help facilitate closure to any challenges
  • Ensure buyers receive their Title Insurance Policy
  • Follow up consistently to provide education, contractors, market updates and other resources that benefit our clients

We understand that the services for good Real Estate Professionals can be expensive. Here is an explanation as to why the costs have traditionally been based on a contingency fee.

What our Real Estate Brokers experience on a daily basis and how this affects you.

Experience Matters

With over 3400 brokers in our Mid Willamette valley, where everyone knows a Real Estate agent, why would it be important to choose your representation wisely?  At Paramount Real Estate; we specialize in understanding contracts, are professional negotiators, and take special care of our clients interests.  Here are just a few situations that we experienced which left people exposed and vulnerable.  

Details matter.

We often do our due diligence in attempting to find out as much information as we can to represent our clients. It amazes us how often the other side willingly gives up confidential information that puts their clients in a negative negotiating position. It is our fiducial responsibility to represent our clients so any information that is not protected is presented for negotiation purposes. Unfortunately many buyers and sellers are not in great hands because of the work that their inexperienced or compromised agent says.

Experiences like this happen often. There are significant due diligence contingencies that protect a buyer’s earnest money. In order to terminate properly, certain steps need to be taken within the contingency periods. Some agents appear to be asleep at the wheel and miss their contingency deadlines to protect their clients. It is then up to our clients to decide what is best for them, however we have been in multiple situations where our clients have been awarded the buyer’s earnest money because they did not perform. It can be costly to be found in default.

We experienced a transaction where a seasoned buyers agent from another company used the wrong form to terminate a transaction for his buyer.  A simple mistake like this put $10,000 of the buyers earnest money at risk as well as having to deal with litigation proceedings that dragged on.  We often see buyers agents send over termination forms within contingency periods thinking they are representing their clients well.  There are additional specific forms that need to be used depending on the contingency that accompany a termination agreement. Some brokers do not understand these details and leave their clients exposed because they do not use the correct forms.

One client of ours was buying a new townhome in the area from a big national builder.  The wrong CC&Rs were recorded with many mistakes in it. The builder/developer used a template from another state for convenience.  We fought to get those changed and updated CC&Rs recorded that protected our client before closing escrow.

During one transaction, we found that the seller had many judgments on record which seized the sale. We notified our buyer immediately so they could terminate within the contingency period and therefore protect their earnest money, as well as save them from spending money on further due diligence issues before realizing that we were faced with a dead end.

Years ago we represented a seller and found that the buyers were not going to be able to perform to close the transaction by the agreed upon closing date.  The buyers agent failed to present an extension addendum to secure the transaction past the close date, and therefore the sellers were able to call the buyers in breach of contract.  Our seller chose not to extend the closing, causing the buyer to lose their earnest money and the sale of the house. These deadlines are critical to meet and many brokers are not paying close enough attention in keeping their clients out of trouble.  This can be especially true in an environment where a seller may be looking for a way out of the contract to be able to sell to a higher paying buyer, or one with more favorable terms.

February Monthly Market Check In

With the inventory still very low historically, our experience is that many sellers are still expecting their homes to sell quickly.  Some homes are still receiving multiple offers and moving quickly, however most of them are taking some time to move.  The ones that are well prepared, detailed-clean, and have amenities that every buyer wants are the ones that get the most attention.  However, buyers are moving much slower these days.  Interest rates have held pretty flat over the last two months, so many buyers are holding tight waiting to see if they are going to drop even further.  The average Days on Market for Residential listings is 120 days from listing to closing.  Compare that with January of 2023 which was only 85 Days!  An average time for a transaction in Escrow is somewhere between 30 and 45 days.  
We are seeing more activity on our listings, which has been a very encouraging sign.  As the weather warms, we will see that activity pick up substantially.  Showing activity within the WVmls has increased 40% in the last 3 weeks alone!  We can always expect people to start moving around the closer we get to the Summer months with school & job changes, and the fact that people get the itch for adventure during the Summer months.  We would expect the market to slow down again the closer we get to the Fall, but that is speculation.  The last CPI report made the Federal Reserve hold rates again and the recent jobs report shows the “experts” that the economy is still moving along.  It is an election year, so expect the headlines to be increasingly positive on the economy!  It will be a very interesting year.
Our sales for January in the WVmls was 524 units, which is the lowest we’ve had in the Month of January since 2015 when we had 487 sales.  In 2017 we had 768 sales in January to give you a better frame of reference.  Since we specialize in Residential units, we have brought our attention that we only had 330 Single Family Residential detached homes sold in January.  The average sales price did tick up since the end of last year and the List/Sold price ratio is still holding very strong.  There are a number of price reductions on the market so it is important to note that the advertised price is the standard being used for that statistic.  Many sellers are having to reduce their asking prices in order to encourage more activity.  Pricing is critical in this current market.  The days of “testing the market” are over for most people, however timing can always be a surprise.  We have witnessed a number of homes sit for quite some time and then receive a bunch of activity.
It is so important for sellers to take the time to prepare their homes for the market.  Detail cleaning baseboards, window tracks, and all the cracks and crevices are where the smells hide.  Replacing end of life appliances and systems and roofs are going to make the home more sellable and worth more to buyers. Washing windows, caulking and painting, removing moss and all of the cosmetic items are so important to give buyers confidence that they are buying a home that has been taken care of.  Most of the consultations before listing take quite a bit of time and some investment.  The sooner a seller gives those details attention, the better experience it will be; and it usually costs less.  Waiting to go to market or until a buyer ties up the property usually costs the sellers more money and a less than desired experience.
Our goals are always to focus on our main points of emphasis:  

  1. Advanced Marketing, Presentation & Exposure
  2. Valuable & Success Negotiations
  3. Keeping our Clients protected through a Smooth Transaction

You have a lot of options, but we believe we are the best to serve you.  You always get what you pay for.

Current Active Listings (All Types)2261Down 1.9% from last month & up 11.4% from this time last year
Current Pending Listings844Up 14.3% from last month & down .4% from this time last year
Sold Listings Last Month524Up 4.5% from last month & up 5.7% from this time last year
New Listings Last Month814Up 35% from last month & up 6.3% from this time last year
Months of Inventory3.33Down 2% from last month & up 32% from this time last year
% List to Sold Ratio99.10%Up .7% from last month & up 1.3% from this time last year
Absorption Rate23%*Up 4.4% from last month & down 8.3% from this time last year
*Based on current active listings vs sold listings for the past month
Average Sales Price in All Categories$467,000Up 2.4% from last month & down 2.1% from this time last year
Average Residential Sales Price$495,000**Up .8% from last month & up 5% from this time last year
**Based on Willamette Valley Multiple Listing Statistics
Average Owner Occupied Interest Rates6.63%***Even from last month & up 8% from this time last year
***Based on Freddiemac.com Statistics of 30 year fixed mortgage+Some numbers are rounded

Buying or selling? We can help!

Let's Talk
Paramount Oregon Paramount Oregon
1008 12th St. SE Salem OR 97302
(503) 385-1518
© 2024 Paramount Real Estate Services
Principal Brokers & Brokers Licensed in the State of Oregon