Exclusive Buyer Agent – What is it and Why do I need one?
Laws designed to clarify how home buyers can be represented in a real estate transaction have been enacted to enable the home buyer to “clearly” understand who their realtor is working for. To the home buyer, these definitions, with their variations can be quite confusing.
In order to assist the home buyer, we have defined the terms that all Realtors must disclose to home buyers at the time of “the first substantial contact”. We hope that these terms, as well as the questions you need to ask all potential Realtors, will help you understand what your options are.
- Subagent or Seller’s agent:
- A real estate agent that represents the seller at all times. Generally this agent will act as a seller’s agent. When you look at homes listed by another real estate firm, the agent you are working with will act as a subagent of the seller.
In all instances, the agent who is showing you homes will be working for the seller only.
- Buyer Agent:
- A real estate agent that has agreed to represent the buyer. However, should you become interested in a home listed by your buyer agent’s real estate firm, your buyer agent will have to divulge that he/she will be working with you in the capacity of a:
- Dual Agent:
- Where your agent is required to represent both you and the sellerequally. In such cases your buyer agent will act as a facilitator which means that your buyer agent will not be able to give you, or the seller, any advice, guidance and or direction. In such cases the buyer, as well as the seller, are left to their own judgement. This is the worst of all possible worlds.
Recently, a new definition (or option) was added which allows your buyer agent to continue acting on your behalf when you are interested in a home listed by your agent’s real estate firm. This is referred to as:
- Designated Agency
- Under this new scenario your buyer agent may designate another agent in his/her real estate office to represent either you, as the buyer, or the seller. This was enacted in an effort to minimize the conflicts of Dual Agency.
- Exclusive Buyer Agent
- A real estate agent that works for a real estate firm, such as Buyers Exclusive REALTY, that does not list homes and/or represent sellers. This EXCLUSIVE BUYER AGENT has the same access to all available homes that other Realtors have and is compensated in the same manner as all Realtors… by the real estate firm that has the listing. However, by selecting an EXCLUSIVE BUYER AGENT, the home buyer will never have to be concerned with who their agent is representing. Remember, a Realtor from a listing firm can act as your buyer agent, and represent you exclusively, only if you are not looking at homes listed with that agent’s firm. With an Exclusive Buyer Agent, you will be fully represented at all times, regardless of who has the listing.
Selecting the Best Realtor for You
When selecting the best Realtor for you, you should ask the following questions:
|Questions To Ask||With Buyers Exclusive||With the Other Realtor|
|As my agent, will you be able to represent me at all times?||Yes||?|
|As my agent, will you be able to offerExclusive buyer representation?||Yes||?|
|As my agent, do you devote 100% of your time to buyers?||Yes||?|
|With you as my agent, will you be able to avoid the confusion that occurs with dual, sub or designated agency?||Yes||?|
|Are buyers your sole clients?||Yes||?|
The Choice is Clear
You as a buyer, have an equal right to be represented in the same way sellers have for years. Your home purchase is most likely your largest financial commitment and you are entitled to professional representation throughout the home purchase process.
If your company requires you to use a traditional Realtor, please tell them about Buyers Exclusive and ask them to let you use us. If a relocation company is handling your move, we’ll let them know of your wishes. You are entitled to Exclusive Buyer Representation. Your company, if they are like most companies, will appreciate you bringing Buyers Exclusive to their attention. After all, they do want to do what’s best for their employees … all you have to do is ask.