What is the difference between a Buyer's Agent and a Exclusive Buyer's Agent? A lot of people call themselves "Buyer's Agents", but the problem is that unless they work in a Exclusive Buyer's Brokerage they work in an office that takes listings, and as an agent in the for that brokerage, they have an obligation to try to "sell" their own company's listings. An Exclusive Buyer's Agent (EBA) works for a Brokerage that has ZERO listings, and has will show you the properties that you want to see. There is no "hidden agenda" to get a specific listing sold, and the Exclusive Buyer's Brokerage has no vested interest in any property currently listed for sale and can therefore truly represent you in your quest for the perfect home. EBA's are on your side and know the local real estate market. They'll work hard to understand what you desire in a neighborhood and in a residence, and will take the time to educate you about the market. Most especially, an Exclusive Buyer's Agent can legally act only on your behalf, with your interests driving their efforts. Many people believe that any agent they work with will represent them and their interests. But, this definitely is not the case. An agent can only represent you with your WRITTEN permission. If you want someone on your side who will help you through the transaction from A to Z, you need to sign and agency agreement with an Exclusive Buyer's Agent. To put it simply, an EBA will become your representative and put your interests above all others. Communication Rules are Different: If you are working with the listing agent, any information that you reveal about yourself must be revealed to the seller. So, for example, if you're approved for a loan $20,000 above the asking price of a home you are interested in, the agent and the seller will know that you can afford to pay full price for the home. Unless you're working with your own agent, communication doesn't flow in the opposite direction. The agent representing the seller cannot legally reveal certain things to you such as the reason for selling, what concessions the seller would be willing to make, or any information that could give you, as the buyer, an advantage in negotiating the price. If you have a Buyer's Agency agreement with your agent, you can turn the tables. Some of the potential benefits from having an agent to represent you include: - Having access to a complete market analysis of similar properties in your area of interest. An agent representing the seller cannot present a market analysis that doesn't support the seller's position.
- Having access to any information that would have a bearing on your home purchase. A seller's agent cannot tell you if a freight train passes close to the home each night at 2am. But, your Buyer's Agent can reveal that type of information if aware of the concern. They can also provide complete insight concerning property value trends that might influence your decision about that property.
- Having access to information that would give you an advantage in negotiations. A seller's agent cannot encourage you to negotiate for a solution to a problem found in the home inspection. Your Buyer's Agent will help you objectively review a problem and identify a fair resolution.
You Have Options! And, There is No Cost!! While having your own representation isn’t a requirement for retiring or relocating to the area, it certainly is the smart thing to do! The important thing is to understand that you have options. You can have a well-trained, knowledgeable and professional advisor who will represent you in a very important real estate transaction. The best part is that you can have this extra service. potentially saving you thousands of dollars, for little or no cost to you! Your Buyer's Agent is normally compensated as a result of the normal split of commissions when a home is sold! Don't give away your right for representation! |