The number one reason for choosing an Exclusive Buyer Agent is that you will save money on your new home purchase because he or she is representing “only you” and not the sellers.
There are three main types of Realtors: Seller Agents, Exclusive Buyer Agents (or Brokers), Dual Agents (including non-exclusive Buyer Agents). After reviewing the information below it should be clear that an Exclusive Buyer Agent will get you the best deal.
Also known as “listing agent”. This is the agent whose name is on the sign. Legally obligated to represent the seller’s interests. Duty is to get the highest price and best terms for the seller, maintain seller’s confidentiality and disclose all known information about prospective buyers. Seller is “client”, buyers are “customers”.
EXCLUSIVE BUYER AGENT
Works for an office that does not take listings of any kind and represents only buyers. The only way for a buyer to be guaranteed 100% representation.
An agent retained by the buyer to represent the buyer’s interests. Requires an agreement of the parties for agent to represent the buyer – not all agents who show homes to buyers represent them! Duty is to locate the right home for the buyer, and negotiate on buyers’ behalf for best price and terms, maintain buyer’s confidentiality and disclose all known information about the seller AND THE HOME to the buyer. Buyer is “client”, sellers are “customers”.
Whenever the agents for the seller and the buyer work for the same real estate company, or “broker”, they BOTH become DUAL AGENTS. Neither buyer nor seller are fully represented. “Designated agency” is a form of dual agency. Liken this to attorneys not representing both sides in the same court case – when they work with both sides they are conducting “mediation” – helping the parties reach their own agreements, but not going to bat for either one.
Below are some comments from the media:
“Like it or not, the real estate agent helping you house hunt is usually working for the seller and is legally bound to try to get the seller the highest price. But buyers no longer have to fend for themselves. You can hire a buyer agent to work on your behalf.” – U.S. News and World Report
“Buyer agents work only for consumers and can save them money – and they don’t cost more to hire.” – Los Angeles Times
“Unlike the traditional agent who looks out for the seller, the buyer broker acts as your advocate, helping you find the home you want and then negotiating the lowest possible price.” – Money Magazine
“The best buyer brokers are so-called exclusive agents – that is, they represent buyers, never sellers…” – Money Magazine
Points to remember when choosing an Exclusive Buyer Agent:
- Be sure the Exclusive Buyer Broker is a Realtor whose company does not ever take listings or represents sellers.
- Use only Exclusive Buyer Brokers who have access to For Sale By Owner, New Construction by Builders, and Realtor inventory Homes in the MLS (Multiple Listing Service).
- Membership in a national organization helps to assure a higher standard of quality service (for example, Buyer’s Resource, the National Association of Exclusive Buyer Agents (NAEBA), the Real Estate Buyer’s Agent Council (REBAC), etc.
- Insist upon signing an Exclusive Buyer Brokerage Agency Agreement. This agreement assures that the real estate agent and company are committed to the buyer exclusively. Those companies who do not use this agreement are not able or willing to make a full commitment to you.
Check out the information on my website to see if I will the best Exclusive Buyer Broker to represent you. Call or email if you have any questions.