Exclusive Buyer Agency Explained
Exclusive Buyers Agent
Sage originally began as an Exclusive Buyers Agency. This is a self-imposed restriction not required by state or local law. Exclusive buyer agents (EBA’s) only represent buyers, never sellers, and the commonly-accepted definition would require that the entire company follow that model. Only a very few companies do this type of agency.
While we operated under that restriction for many years, our loyal clients began to ask us to find them another home and wanted us to help them sell theirs. We now offer listing services under those and certain other circumstances, but we still operate under the self-imposed restriction that we will not represent both sides of any transaction. If we have a buyer interested in one of our listings we would arrange for alternative representation.
What this means to you
When an agency represents both sellers and buyers, this is known as dual agency, which is permitted under Pennsylvania law. Sage does not and has never practiced dual agency. Every large company permits this practice and many encourage it. In most cases, the listing agent has a reduced duty to both sides (no fiduciary duty) and receives twice the commission than if representing only one side.
Traditionally, real estate agents have represented the seller. This is still the “default” if you don’t have a buyer agency agreement (such as if you walk into an open house unrepresented). But even though they are your “agent” this means they cannot disclose to you any information that would compromise the seller’s position, such as why they are selling or their lowest price. In order for a buyer to be fairly represented they need to enter into a buyer’s agency relationship with their agent. With Sage, when you enter into our Buyers Agency Agreement, it creates a fiduciary relationship between the agent and the buyer and eliminates any potential conflict of interest. The entire focus is on the buyer’s needs.
The Bottom Line
Sage is committed to strict agency standards that surpass minimum state standards.
We will search harder and work diligently to get you the best deal. All at NO COST to you. The seller is already obligated to share the commission with buyer’s agents under the listing agreement and the terms of the MLS system.
Does using an Specialized Buyer Agent matter to me, the buyer?
Think about it. How do you want to be represented?
Open the door to a great buying experience!
Here’s what the industry is saying about exclusive buyers agents:
In its Home Shopping booklet, the US Department of Housing and Urban Development states: “If you want someone to represent only your interests, consider hiring an ‘exclusive buyer’s agent, who will be working for you.” US Department of Housing and Urban Development
“You’ll get the surest representation from a single-agency broker or an exclusive buyer’s broker.” Kiplingers
“Not all buyers agents are created equal. Most home shoppers use agents who work for companies that also list properties, and they’re likely to steer you to company listings first,” says Stephen Brobeck of the Consumer Federation of America. “It’s an irreconcilable conflict of interest.” Newsweek Magazine
“How can one person really represent both interests at the same time? If you live in a state where dual agency is allowed, the only way to avoid it is to work with an exclusive buyer’s agent–someone who doesn’t take listings or work for an agency that also represents sellers.” DailyFinance.com AOL Real Estate
“While dual agency is inherent to your business, it can — and probably should — be minimized. Dual agency is fraught with difficulty. Licensees are expected to walk the center line without faltering.” James L. Goldsmith, ,Esq., PAR Blog, Just Listed
Money 101: “What you need is an exclusive buyers agent” CNN’s Money Magazine
“Consider using a buyers agent.” ConsumerReports.org
That’s what the industry is saying. Now hear what clients of Sage, exclusive buyers agency, have to say.