Buyer Agency Explained
What is a Buyer Agency?
Unless specifically disclosed otherwise, a real estate agent represents the seller in a property transaction. That agent’s responsibility is to protect the seller’s position – not the buyer’s! With a buyer agent, you are assured that your agent is working to promote only your interests. A buyers agent is paid from the commission on the sale of a home. Any home listed in the MLS, Multiple Listing Service, advertises a contracted commission to any agent who represents a buyer for the property. Avoid the four biggest mistakes many buyers make.
Is a Higher Price Needed to Cover This?
That is almost always NOT TRUE because the seller has ALREADY agreed to pay a full (read double) commission to his agent which they only have to share IF the buyer has his own agent. If he does not, the seller still has to pay the higher amount. The contract does not allow there to be a savings if there is not a buyer’s agent. So two agents is not a recipe for a higher price. But it is a recipe for real negotiations.
What are all those initials?
When you see “ABR” after an agent’s name, you know you’re working with a committed agent whose focus is on your best interests. This designation is awarded by the Real Estate Buyer Agent Council (REBAC) only to REALTORS® who meet specific educational and experiential criteria. It stands for Accredited Buyer Agent.
An “Esq” means the person is also an attorney, trained as an advocate and skilled at negotiating for YOU.
“EPro” means the agent has passed a rigorous course centered around real estate technology.
“SRES”,Senior Real Estate Specialist, is a Realtor® who has qualified to specifically address the needs of buyers 50+ through major financial and lifestyle transitions in relocating, refinancing, or selling the family home.
“ALHS”, Accredited Luxury Homes Specialist, is a Realtor® who has taken specialized training to address the fine points of the luxury home buyer.
Want to learn more?
With Sage, you get a company that specializes in the nuances of the process that are specific to buyers. We are members or recommended by:
- Real Estate Buyer Agent Council (REBAC) and
- National Association of Exclusive Buyer Agents (NAEBA)
That means you get specialized and high quality service just for buyers, usually at absolutely no cost to you.
Call or email us today to get started.
Who recommends Buyer Agency?
The federal government recommends using your own agent. Read the U.S. Department of Housing and Urban Development’s suggestions in the latest version of Shopping for your Home Loan.
Read what CNN’s Money Magazine says about the way a smart buyer uses an exclusive buyer agent.
“When calling in response to a listing broker’s advertisement or showing up at an open house, be clear on one thing. This person is employed by the seller of the home. That seller . . . [is] paying the agent’s commission. If you want to be sure you have a pro looking out for you, enlist a buyer’s broker. This type of agent signs on to work exclusively for you in whatever deal you may strike, and can help you through the buying process, from search to offer, to contract, to closing.” 15 Secrets no Real Estate Broker Will Tell You, This Old House Magazine
“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 Magazine
“You can’t have partial loyalty. An agent either works for you or works for someone else.” Consumer Reports
“In many cases buyers may be at an advantage when they work with a buyer’s agent – at least compared to relying on a seller’s agent for advice or guidance. A seller’s agent is contractually obligated to help make the sale happen in the seller’s favor, often as close to the asking price as possible.” Smart Money
“It is vital that the buyer understand that the listing agent does not work for the buyer and does not owe a duty of confidentiality to the buyer. Anything a buyer reveals to the listing agent may be disclosed to the seller. Only a buyer’s agent has a fiduciary duty solely to the buyer.” The Washington Post
“Buyers do need to be educated on the benefits of working with a Realtor in a single agency client relationship which affords them the highest level of service and the agents expertise. It saddens me when I go on a listing appointment and have to tell the homeowner they paid too much for their home and usually I find out they have used the sellers agent as their agent in the transaction and weren’t educated as to who the agent was working for and what role they would play in the transaction.” Sally Morris ,Greenwood Realty, Greenwood SC
“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 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 of Physicians