Why use an exclusive buyer’s agent?
~WHY USE AN EXCLUSIVE BUYER AGENT?~
If you’re in the market for a home or property, you may think the real estate agent who chauffeurs you around town is looking out for your best interests. Don’t bet on it!
In the traditional way of selling houses, both the agent who lists the property and the one who brings a buyer to the table are legally working for the seller. Even if “your” agent learns that the seller is willing to cut the price or pay some of the closing costs, you may be kept in the dark. At the same time, information you give to “your” agent such as how much you really can afford and how soon you need to buy, must be reported back to the sellers, giving them a negotiating advantage.
In this system, the odds are stacked against the buyer.
That’s why more and more buyers are getting their own agents to help them find the right property, negotiate the best possible deal, and close with the least amount of hassle. These agents, called Exclusive Buyer Agents, are licensed real estate agents. They have access to all of the usual resources used to find houses, including the Multiple Listing Service (MLS), as well as sources not usually accessible to traditional agents, such as homes for sale by owner and foreclosures. But there is one very big difference between traditional agents and Exclusive Buyer Agents: the Exclusive Buyer Agent represents the buyer and is legally bound to get the best deal possible for the buyer. Exclusive Buyer Agents do not represent sellers; they do not list homes for sale. This exclusive agency is the kind of representation buyers have when Buyer #1 is working for the buyer.
As more people use Exclusive Buyer Agents, there’s mounting evidence that the old-fashioned way simply doesn’t get buyers the best deal. When U.S. Sprint studied the home purchases of relocating employees, it found that those who worked with traditional real estate agents ended up paying about 5% more than those who used Buyer Agents. On a $200,000 property, that’s $10,000 of the buyer’s money wasted.
The trend toward equal representation is proving unstoppable. Consumer advocates have gone on record urging consumers to seek buyer representation in purchasing a home. Exclusive Buyer Agents nationwide have formed the National Association of Exclusive Buyer Agents (NAEBA) to educate consumers and to help them find an exclusive buyer broker anywhere in the country.
Texas now has a condition called intermediary agency where the agent can designate one agent to represent the seller and another to represent the buyer if the buyer is interested in a company listing. In this situation, neither side is fully represented. Buyers who wanted to be represented from the start are often led into this condition without realizing they are agreeing to give up some of the advantages of buyer representation.
That means the only way for buyers to ensure they’ll have a crack at every house available that meets their needs AND have an advocate all the way through the deal, is to work with a brokerage like Buyer#1 that only represents buyers .
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