|All about buyer agency: facts,
myths and misconceptions
- Why is it important to have a Buyer Agent?
- How is a Buyer Agent paid?
- What additional training or
qualifications are required to be a Buyer Agent?
- What is NAEBA?
- What's an Exclusive Buyer Agent?
- Why is it important to be represented by a company that only represents buyers?
- Why can't a traditional Real Estate Agent be a good Buyer Agent?
- What if I do have an agent who only represents buyers?
- What's wrong with just looking at houses without an agent?
- How can The Buyer's Best help me on new construction?
- If The Buyer's Best doesn't sell houses, how can you help me get a house?
- But I have a house I need to sell, and you can't do that. Don't I need an agent who can do both?
- Explain the Buyer Agent Agreement
- What do your services include?
Why is it important to have a Buyer Agent?
Legally, a Buyer Agent is working for you to protect your best interest in purchasing a home.
How is a Buyer Agent paid?
Although there are other options, a Buyer Agent is usually paid from the seller's
proceeds at settlement. The total commission is negotiated and agreed to be paid
by the seller to the listing company; the listing company then pays a percentage
of their commission to the agent bringing the buyer. The Buyer's Best does not
charge any fees at all to the buyer.
What additional training or qualifications
to be a Buyer Agent?
Unfortunately, any real estate agent can say that he or she is a buyer agent. There are training programs available such as ABR (Accredited Buyer Representative) and CBR (Certified Buyer Representative). The CEBA (Certified Exclusive Buyer Agent) designation, given by the National Association of Exclusive Buyer Agents (NAEBA) requires not only many classroom hours, but also service to the real estate community and extensive experience representing homebuyers only.
What is NAEBA?
The National Association of Exclusive Buyer Agents is an organization of real estate agents who are committed consumer advocates and believe that the only way to represent homebuyers is to only represent homebuyers.
What's an Exclusive Buyer Agent?
Be careful here. At The Buyer's Best, exclusive means a company that only represents
buyers. At a traditional real estate company, "exclusive" means
an agent with whom you have agreed to work exclusively. This does not give
you the protection from dual agency that you'd have with an agent and company
that only represents buyers.
Why is it important to be represented
a company that only
A real estate company is allowed to represent the seller and the buyer in the same transaction, with the company acting as what is called a Dual Agent, ie.: the entity representing both sides in the transaction. This raises some interesting questions about confidentiality, conflict of interest and whether your best interests as a buyer are really being represented by the company selling the house you want to buy. Additionally, if you have hired a traditional agent as a buyer agent and that agent then lists a house that you may want to purchase, your buyer agent is allowed then to represent the seller AND is supposed forget all the confidential information that you have already given them. You will be assigned what is called an "Intra-company agent" to represent you.
Why can't a traditional Real Estate Agent
a good Buyer Agent?
Most traditional agents and companies focus on getting listings and selling them. Because The Buyer's Best only represents buyers, we are always looking at homes from a buyer's perspective. We will point out the faults in the house. We are helping you find your best house from all homes on the market.
What if I do have an agent who only represents
Unless that agent works for a company that only represents buyers, see #6.
What if I call about a house for sale and the listing agent assigns an agent
to me who only works with buyers? See #6. Additionally, since that "Buyer Specialist" or "Buyer Representative" is
part of the listing agent's team, wouldn't you be concerned that you might
not be having full representation or complete confidentiality. What if I
have an Exclusive Agency Agreement with a traditional company? "Exclusive" sounds
good but only means that you are agreeing to work exclusively with that company,
not that there won't be a Dual Agency situation.
What's wrong with just looking at houses
If you are shown a house by any real estate agent, then you are working with
an agent as far as that house is concerned and that agent is probably going
to get paid if you buy that house. Your choice is whether or not you want
to have a good agent who is really working for you. This includes visiting
new home communities. In going out "just looking" at any homes,
open houses or new homes, you may be giving up your right to representation.
can The Buyer's Best help me on new construction?
You may miss some houses or communities in trying to find a new home. We may
be able to negotiate a better price or better terms. We can assist you in choosing
which options will help add value when you want to sell that houses and can also
advise you on other things you may want to consider such as the price within
the neighborhood, future development, the surrounding area and what effect these
may have on the value of your home. We can also look at almost-new resale homes,
which frequently are better buys than new homes. With new construction, it is
still to your advantage to have a Buyer Agent and, since almost all builders
are happy to work with Realtors, they too will pay a fee to your agent.
If The Buyer's Best doesn't sell houses,
can you help me get a house?
The Buyer's Best accesses all the same sources that any real estate company would, such as the multiple list service but we go way beyond just looking in the MLS. The point is exactly because we don't have listings, you'll never feel that we are steering you toward a particular house. Remember, we'll be free to choose from all the homes on the market, honestly and impartially.
But I have a house I need to sell and you
do that. Don't I need an agent who can do
Most traditional agents and Real Estate Companies will be focusing on getting your listing and selling your house anyway, as well as then selling you another house that they have listed. We know who the good listing agents are and will refer you to one specifically for your type of house. This way, you literally have the best of both worlds.
What do your services include?
Explain the Buyer Agency Agreement
This is the document that allows an agent to represent the buyers while being paid by the sellers. It spells out the obligations of the clients and the company and represents a commitment on the part of everyone to work together toward the common goal of seeing you in your new home. Call me if you'd like a copy of the agreement and/or further explanation.
Typically, we will be with you at every step in your home purchase, from our
initial "can we buy a house?" meeting, through finding the right
house, getting the right loan, and finally going through settlement, including
all the stops along the way, and all the things that you don't see that
when done right, make your homebuying experience a good one.
What's the catch?
With The Buyer's Best, there isn't one. If you want to buy a house, call us.