The guaranteed best representation possible for a home buyer is to hire their own personal Exclusive Buyer’s Agent (EBA).
Exclusive Buyer agent representation for home buyers has recently (Jan. 2010) been endorsed in the new consumer publication from the Department of Housing and Urban Development (HUD); “Shopping for your Home Loan: HUD’s Settlement Cost Booklet“. This is HUD’s first major revision in 10 years and advises home buyers to hire a real estate agent that will only represent their best interests. Page 6 of HUD’s Settlement Cost Booklet states, “If you want someone to represent only your interests, consider hiring an ‘exclusive buyer’s agent’, who will be working for you.”
You would think this would be great news for home buyers & exclusive buyer’s agents. But, now the problem is that many real estate agents are calling themselves an “Exclusive Buyer Agent”, when they really aren’t EBA’s. Real estate agents are just making up their own “titles” or “specialities” just so they can generate more business. But, they are NOT EBA’s or a true Buyer Broker
Quite simply, The only definition of an Exclusive Buyer Agent is an agent that never list property for sale and the company they work for does not list properties or provide any representation for Sellers.
If you are potential home buyer that is interviewing possible Exclusive Buyer Agents then just ask this simple question:
“Do you or any other agents in your office list or sell properties at anytime?” If they answer yes, then the agent is not a true EBA.
Here is what leading national magazines and newspapers say about “true” Buyer Brokers:
“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 at the highest price.”
“Many people don’t realize that, unless specifically stated otherwise, brokers are legal representatives of Sellers. A buyer’s broker representing only the buyer, may be able to secure a better price and better terms.”
“Unlike the traditional agent who looks out for the seller, a buyer broker acts as your advocate, helping you find the homes you want and then negotiating the lowest possible price. the best buyer brokers are so-called exclusive agents – that is, they represent only buyers, never sellers…”
“Exclusive agencies are best. They remove any conflict of interest, which is the main reason for considering a Buyer Broker in the first place.”
“…A Buyer’s Broker is prohibited from disclosing to a Seller that the Buyer can, or will, pay more than what has been offered… To eliminate conflict of interests, exclusive buyer agents do not take listings. Buyer’s Broker make a great deal of sense”
“Groups such as Consumer Federation of America and AARP recommend using Buyer’s Agents. The reason is they work.”
“A conflict of interest is more likely when a real estate firm that represents sellers assigns you one of its Brokers as a Buyer’s agents. That’s why many people believe, “Exclusive Buyer Broker” is preferrable. Exclusive Buyer Broker aims to get the best deal for home buyer.”
Good luck out there!
Please feel free to contact me if you need help or have questions
Representing People, NOT Property!