Dirt Road Realty > Why a Buyer's Agent?
The right real estate agent – or the wrong one – can have a great deal of impact on not only the outcome, but
the entire process of purchasing real estate. We at Dirt Road Realty firmly believe that the home buyer has a right to full and equal
representation and service; just as the seller receives from a listing agent. Increasingly, as consumers learn how the real estate industry
works, they are demanding the level of service that ONLY an Exclusive Buyer Agent is able to provide. The Exclusive Buyer Agent, therefore,
is on the cutting edge of the real estate industry. www.naeba.org
Traditionally, real estate firms represent and work for the best interest of the seller.
When you call an agency about an advertised property, you will be speaking with a seller's agent. A seller's agent can drive you around, show
you property, and moves the sales process along by providing you with helpful information and services. However, a seller's agent cannot legally
give you advice, and cannot tell you that they think a property is over-priced without jeopardizing their license. What is more, a seller's agent
is legally required to disclose to the seller anything he or she learns about you which will weaken your bargaining position.
In contrast, the Exclusive Buyer Agent (EBA) works for an office that does not take listings of any kind and represents only buyers.
Only an Exclusive Buyer's Agent, with whom you have a written brokerage agreement, can advise you and help you plan a negotiating
strategy. Significant questions as “How long has the property really been on the market and What was the original price?”
need to be asked and answered. Only your Exclusive Buyer Agent owes you loyalty, accountability, and confidentiality.
Buying a home is a legal transaction involving a number of legal issues that you need to look out for. The Exclusive Buyer Agent is
instrumental in bringing attention and insight into practical issues for the buyer's benefit. For example, intentionally or not sellers
may not disclose information about the property in a timely fashion such as zoning issues which can hamper the ability to put up additions
or even fencing, or approved COs for insurance that the construction was done under the town's codes. There is a New York State Seller's
Property Disclosure. As an Exclusive Buyer's Agent, it is my responsibility to educate you as the buyer about the law and your right to
receive a completed form from the seller before you sign a binding agreement. In practicality most sellers do not provide the buyer with
a property disclosure form. They do not want to be held responsible for unknown defects. The seller is not required to provide this completed
disclosure form, however he must give you, the buyer, a credit of $500 against the purchase price from the seller at closing.
Everyone wants to save money on real estate and the experts offer books and websites with home buying advice. However, your first step to
achieve that goal is to choose a buyer’s agent who has the same goal as you – to save money on your home purchase.
Only an Exclusive Buyer Agent, EBA, can Guarantee to represent you in your home or land purchase.
Only an EBA can
GUARANTEE to negotiate on your behalf. An EBA provides the unbiased facts as to value, market/neighborhood conditions, and obvious physical
defects. The high level of negotiation training and expertise of an EBA truly shows when it is time to make an offer on a property.
Again, why an EBA?
An EBA only represents buyers and does not have in-house or company listings. Many times a seller is
unaware of the price buyers are willing to spend during the negotiation process, which brings the advantage back to the buyer that is working
with a well trained EBA. For this reason it is very common to save thousands of dollars during the critical negotiation process.
An EBA will insist that the buyer utilize a qualified home inspector who will treat the buyer as a valued client.
Listing agents (the ones with the sign in the front yard), and the company that they work for, represent the SELLER, not the buyer. Their job is
to get the SELLER the highest price on the best terms. The job of the EBA is to get the BUYER the lowest price on the best terms.
EBA will give you the facts, good and bad. A listing agent cannot tell you about many things that would be detrimental for the BUYER because they work for the SELLER.
An EBA will help you with your financing alternatives. You may be advised to be pre-approved by a lender. Why? A fully approved loan makes you a cash buyer.
EBA has a legal and ethical obligation to put your interests first.
It just makes sense!
Real Estate and Buyer Agency News
You wouldn’t---for a lot of good reasons---go into a contested divorce proceeding without an attorney, or worse, take the advice of your spouse’s attorney.
Is your agent really working for you? By Christopher Cruise
"A conflict of interest is more likely when a real estate firm that represents
sellers assigns you one of its brokers as a buyer agent. That's why many people believe an "exclusive" buyer broker is preferable.
If there aren't any in your area, and you have to use a listing broker, "make sure they disclose when they are showing you properties they
have a financial interest in," says Stephen Brobeck, executive director of the Consumers Federation of America." Business Week
"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 for the highest possible price." USA Today
"You have a whole new evolution of practice in the marketplace," said Sharon Millet, a Maine real estate broker who headed the 22–member
NAR task force that issued the report. Millet said that the report's recommendations are designed to give home buyers and sellers easier access to the
"kind of representation" that they want." Washington Post
'Buyer Advocacy appears to be taking off." "I'll never buy a house any other way." – Mrs. Renee Talley, Highland Park TX Wall Street Journal
"Exclusive agencies are the best. They remove any conflict of interest, which is the main reason for considering a buyer broker in the first place. Kiplinger's CHANGING TIMES
"To Buyers: If you want representation, work with a buyer broker. They are legally obligated to represent your interests in any negotiations
with sellers." The Consumer Federation of America " Groups such as the Consumer Federation of America and AARP recommend using buyer's agents. SmartMoney Magazine , June 1995
"Many people don't realize that, unless specifically stated otherwise, brokers are legal representatives of sellers. A buyer broker,
representing only the buyer, may be able to secure a better price and better terms." Good Housekeeping
"When one salesperson has a home listed for sale, and another salesperson working for the same brokerage locates a buyer, the second
salesperson can't be a true buyer's agent. Why? Because both people work for the same brokerage. A "dual
agency" with both buyer and seller is the usual solution. To solve this problem, a few states are experimenting with laws allowing the agent who finds a buyer
for a home listed with the same brokerage to be a fully disclosed buyer's agent for the buyer. This "legal fiction" enables the buyer to work with his own
agent who, by law, doesn't also represent the seller." Robert J. Bruss – Real Estate Weekly/The Virginian–Pilot
"Buyer brokers: agents that buyers can call their own...If your real estate agent isn't a buyer broker, he works for the seller...Buyers
no longer have to fend for themselves." U.S. News & World Report
"Level the playing field when you buy a home...You may get a better deal with your own broker pulling for you...The introduction of buyer
brokers takes a horribly one–sided process and simply makes it fair," says one broker." Medical Economics
brokerage is becoming accepted. Unlike traditional real estate arrangements, under which the agent works for the seller, buyer brokers work for the buyer." Florida TODAY
"Confusion often arises because many buyers believe that the agent who shows them houses works on their behalf. In fact, subagents of
the listing broker – often they are agents who work for another office – also act on behalf of the seller." New York Times May 19, 1995
"Buyer brokers have the buyer's interests in mind. They act as a personal advocate, hunting for the right house and haggling with the seller's agent.
In fact, a 1992 study by a national long distance phone company, found that 200 relocating workers who used buyer brokers paid an average of 91% of the offering
price, whereas those using traditional brokers paid 96%." Diversion Magazine for Physicians