From Wikipedia – “In 1983, a Federal Trade Commission study revealed that more than 72 percent of home buyers in the United States mistakenly believed that the agent who was showing them homes was representing their interests. As a result, laws requiring agents to disclose whom they actually represent have been passed across the country.”
Exclusive Buyer’s Agent – Know the Difference!
What is an Exclusive Buyer’s Agent?
From Wikipedia – “In 1983, a Federal Trade Commission study revealed that more than 72 percent of home buyers in the United States mistakenly believed that the agent who was showing them homes was representing their interests. As a result, laws requiring agents to disclose whom they actually represent have been passed across the country.
We, as an Exclusive Buyer’s Agent brokerage, have chosen this business model in order to eliminate the conflict of interest that exists when one real estate company attempts to represent both buyer and seller in the same transaction. We know that it just can’t be done! Question: What if you found yourself with a legal problem, and someone sued you. Would you call your opponent’s lawyer to represent you? (That lawyer wouldn’t be allowed to represent both of you anyway because of the conflict of interest – but think about it.) Of course not! You would find find a lawyer to work on your behalf to settle the issue. It’s the same in a real estate transaction…except with a whole lot more of your money involved.
Who is the Best Real Estate Agent?
All this being said, most Realtors are honest, ethical people. As Realtors, we are all bound by standards set forth by the Missouri Real Estate Commission. But that same Commission sets forth standards for the many different types of Realtors. So, even though Realtors are great people – they must legally serve in different capacities according to the specific transaction. No matter how great they are – they simply cannot represent two parties in the same transaction. Think about it. Both parties want the same thing – mostly the best price. The only problem is that the term, ‘best price’, has different meanings to different people. For the seller, it means that they get the highest possible price – and for the buyer, it means that they get the lowest possible price. How in the world can one agent accomplish this for both parties?
The bottom line is that the best real estate agent is one that will work in your best interests! One that will:
- Act as YOUR advocate during the entire homebuying process.
- Listen to your needs and concerns – and help you find properties to view that meet your criteria.
- Show you any and all properties that are of interest to you – whether they are listed on the MLS (Multiple Listing Service) or are For Sale By Owner.
- Having a critical eye – pointing out visable ‘red flags’ when viewing properties.
- Use their knowledge and experience to help you understand the local market conditions.
- Provide current sales comparables for the property you are interested in buying, search out any pertinent facts about the property, and help you put together the best possible offer.
- Negotiate on your behalf for the best possible price and terms.
- Make sure all the required legal documents are completed.
- Assist in making sure you have all the inspections you need to make an informed decision about the property.
- Negotiate any needed repairs – and making sure they are finished on time.
- Be there to answer and address any questions or concerns you have.
- Accompany you on a final walk through inspection right before closing to make sure nothing has changed and the home’s condition is what you expect it to be.
- Accompany you to closing – making sure everything has been handled and take care of any last minute details.
- Will be there AFTER closing if you have any questions or concerns.
Buyer’s Agent vs. Seller’s Agent
An EBA or associated broker does not take or hold listings or represent any seller. In this state, by law, the broker, or agent must have a written agency agreement to represent the buyer exclusively. Without one, the broker or agent may be working for the seller or in a limited capacity. Ask your agent if they are a (1) Transaction broker, (2) Faciliatator or (3) a Listing Broker. If they answer yes to any of these questions, you might want to reconsider and find an agent that will represent YOU and ONLY YOU!
Did you know that you have to authorize – by signing a legal document… that you agree to the agent becoming a ‘transaction broker’? Both you and the seller have sign this document – agreeing to the change in status. I don’t know anyone who has ever had this explained to them. Usually it’s in a stack of other documents and you’re just asked to sign…which most people do, and you’re don’t realize that you’re signing away your right to representation. In fact, I know a lot of agents that always work as a transaction broker (or facilitator) – because they are not held to as high a standard as Exclusive Buyer’s Agents. They are just doing the paperwork.
Exclusive Buyer’s Agent Fees – Who Pays?
Exclusive Buyer’s Agent fees are paid from the transaction. There is NO additional charge to You as the Buyer. The listing agent will already have negotiated the real estate commission with the seller of the property…and part of that commmission is set aside to go to the agent that sells the property. If the listing agent is also the selling agent – then that agent receives the entire commission.
See the incentive here to make the sale instead of putting your needs first? See the conflict of interest?
DON’T CALL THE NUMBER ON THE SIGN!!
If you truly want someone on your side, don’t call the number listed on the sign. As we’ve gone over before, that number belongs to the person that is legally bound by contract to represent the seller of that property. But, guess what? They are also bound to disclose any known defects in the property. It’s hard to believe – but I’ve been told more than once not to tell the listing agent about anything that turned up during the home inspection. Told by the agent!! Of course, we normally give a list of requested repairs to the listing agent after the home inspection. But, when the home inspection fails and I call to tell the agent that my client isn’t going to proceed with the purchase – often that agent will tell me not to tell them any more. They don’t want to hear it. Because if they know it – they have to disclose it. I, personally, find it unbelievable!
Fortunately, I’ve been a Realtor for over 30 years and have seen a thing or two during that time. It’s in your best interest to have someone on your side that knows what to look for and can help you navigate the waters. Usually the waters are smooth and it’s easy sailing. But, when there are problems – look out! It sure pays to have someone who has been there before.
Why I Became an Exclusive Buyer’s Agent
I became an Exclusive Buyer’s Agent because of these very reasons. When I became licensed many years ago, it was truly a “Buyer Beware” situation. There were no buyer’s agents nor home inspectors. It was well known that all agents represented the person that paid them – which was the ‘seller’. I quickly realized that ‘buyers’ needed a break, so I worked on their behalf long before there was such a thing as ‘buyer agency’. I became a true buyer’s agent as soon as the laws changed and “Exclusive Buyer’s Agents” became known.
I have my own small agency because if I work for a large company that takes listings – I’m right back where I started from. When I represent you, you can be assured of the following:
- There will be no Conflict of Interest!
- I will show You homes that fit Your needs whether they are MLS Listed or For Sale by Owner!
- I will advise You on strategy in putting together your Offer!
- I will protect Your interests in all matters!
- I will preserve Your confidentiality!
- I will agressively negotiate to get You the best possible deal!
- You will have my undivided loyalty!
We will have a true fiduciary relationship of transparency and trust. Imagine – all this and it doesn’t cost you anything! Exclusive Buyer Agency is truly a win-win relationship!