In the ten or more years that the concept has been around, exclusive buyer agency has drawn a growing mass of media interest. From commentary to reportage, exclusive buyer agency advantage is receiving positive coverage in a wide range of media.
A conflict of interest is more likely when a real estate firm that represents sellers assigns you one of its brokers as a buyer agent. That’s why many people believe an “exclusive” buyer broker is preferable. If there aren’t any in your area, and you have to use a listing broker, “make sure they disclose when they are showing you properties they have a financial interest in,” says Stephen Brobeck, executive director of the Consumers Federation of America.
Buyer brokers have the buyer’s interests in mind. They act as a personal advocate, hunting for the right house and haggling with the seller’s agent. In fact, a 1992 study by a national long distance phone company, found that 200 relocating workers who used buyer brokers paid an average of 91 percent of the offering price, whereas those using traditional brokers paid 96 percent.
Diversion Magazine for Physicians
Buyer brokerage is becoming accepted. Unlike traditional real estate arrangements, under which the agent works for the seller, buyer brokers work for the buyer.
Many people don’t realize that, unless specifically stated otherwise, brokers are legal representatives of sellers. A buyer broker, representing only the buyer, may be able to secure a better price and better terms.
Exclusive agencies are the best. They remove any conflict of interest, which is the main reason for considering a buyer broker in the first place.
Kiplinger’s CHANGING TIMES
“Level the playing field when you buy a home…You may get a better deal with your own broker pulling for you…The introduction of buyer brokers takes a horribly one-sided process and simply makes it fair,” says one broker.”
Confusion often arises because many buyers believe that the agent who shows them houses works on their behalf. In fact, subagents of the listing broker – often they are agents who work for another office – also act on behalf of the seller.
New York Times May 19, 1995
When one salesperson has a home listed for sale, and another salesperson working for the same brokerage locates a buyer, the second salesperson can’t be a true buyer’s agent. Why? Because both people work for the same brokerage. A “dual agency” with both buyer and seller is the usual solution. To solve this problem, a few states are experimenting with laws allowing the agent who finds a buyer for a home listed with the same brokerage to be a fully disclosed buyer’s agent for the buyer. This “legal fiction” enables the buyer to work with his own agent who, by law, doesn’t also represent the seller.
Real Estate Weekly/The Virginian-Pilot
“You have a whole new evolution of practice in the marketplace,” said Sharon Millet, a Maine real estate broker who headed the 22-member NAR task force that issued the report. Millet said that the report’s recommendations are designed to give home buyers and sellers easier access to the “kind of representation” that they want.
Coming Soon: More excerpts from all the positive press that
exclusive buyer agency is generating.
“To Buyers: If you want representation, work with a buyer broker. They are legally obligated to represent your interests in any negotiations with sellers.” The Consumer Federation of America ” Groups such as the Consumer Federation of America and AARP recommend using buyer’s agents.
SmartMoney Magazine , June 1995
Agents: How to hire one for your side � Most agents who show you homes don’t represent your interests. They work for the seller, and their object is to sell the house for the highest possible price.
“Buyer brokers: agents that buyers can call their own…If your real estate agent isn’t a buyer broker, he works for the seller…Buyers no long have to fend for themselves.”
U.S. News & World Report
Buyer Advocacy appears to be taking off.” “I’ll never buy a house any other way.” – Mrs. Renee Talley, Highland Park TX Wall Street Journal
“We all know that dual agency is not legally definable in the real world. We should not offer anything less than 100 percent client-level services to our buyer/seller clients. We should reject all anti-consumer proposals that do not offer our clients protective fiduciary duties and responsibilities.”
Robert McAvoy – President of the New Hampshire Assoc. of Exclusive Buyer Agents