Historically, most people began their home buying search by contacting real estate agents about homes advertised in home magazines and newspapers, or advertised by way of “open houses” or “for sale” signs posted on the front lawn.
Through this process they would very often make contact with an agent who seemed pleasant and knowledgeable and would begin looking at homes for sale with “their agent.”
What they generally did not know, however, was that the person they considered “their agent” was, in fact, the seller’s agent.
As a seller’s agent, “their agent” was bound, legally and ethically to look out for the seller’s best interests, not the buyers. Therefore, information shared by the buyers with “their agent” relative to negotiation and pricing strategies would, as a matter of agency law and ethics be required to be communicated to the seller.
Likewise, opinions offered by “their agent” concerning any matter relating to the transaction would be those designed to help the seller achieve their goals: the highest price on the best terms.
Often privileged and confidential information, for example “my negotiation range” or an admission that “this home is the one for me”, would be relayed as a matter of law and ethics to the seller via that chatty, cheerful helpful real estate agent who was kind enough to escort the buyers through a selection of homes.
If this surprises and shocks you, do not feel alone. A number of national surveys have concluded that most home buyers were not aware of this practice.
If you are offended by this, you are not alone. It was this reaction that led to a transformation in the delivery of real estate brokerage services nationwide.
This sense of astonishment at how business was conducted in the past has resulted in the concept of “Buyer Brokerage” and with it a revolution in the way real estate services are delivered to the home buyer.
Today, “traditional” real estate brokerage is dead. The state of the art in brokerage services for the home buyer is Buyer Brokerage.
This is the answer to the question of how to ensure that both parties to a transaction receive the same level of effective, confidential representation and service both need and deserve.
While a seller’s agent, often referred to as a “listing agent”, pursues the seller’s agenda of obtaining the best offer at the highest price, a buyer’s agent is free to devote their full attention to the buyer’s needs and goals. In fact, a buyer’s agent as a matter of law and ethics is bound to serve the needs of their principal, the buyer.
Finally, buyers today have an opportunity to enjoy the same level of effective, confidential and professional services that historically were available only to the seller. Buyer- consumers now control their own inside track.
Some of the needs served by a Buyer’s Broker include:
An “Exclusive Buyer’s Agent” is someone who acts only as a Buyer’s Agent, and who DOES NOT represent sellers or otherwise list homes for sale.
Such an agent always wears only one hat, that of a buyer’s agent, and has made a conscious business decision never to “list” homes for sale or otherwise dilute their time and energy away from serving buyers.
Generally, they are best suited for providing client-level services to satisfy a buyer’s needs, concerns and expectations. Exclusive Buyer’s Agents, being specialists in that they only represent buyers, are able to add greater economic value to a buyer’s transaction.
HomeBuyerPower® is an Exclusive Buyer Agency.
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