Exclusive Buyer's Agents in the News

As Consumer Advocate groups and the mainstream media are becoming aware of Exclusive Buyer's Agents, the hiring of Exclusive Buyer's Agents by home buyers is becoming more and more common. Here are some quotes from recent newspapers, magazines and online media publications about the benefits of hiring and working with an Exclusive Buyer's Agent when buying a home:

"...use an exclusive buyer agent... Unlike traditional agents, EBAs don't work for listing brokers, so they avoid the risk of dual agency -- when one broker represents both parties. EBAs are still paid by the seller, but they can promise to represent your interests exclusively throughout the transaction and help you negotiate the lowest price." - Hire Your Own Agent, From Kiplinger's Personal Finance magazine, March 2007

Buyer's agents have become increasingly popular across the country... they contractually agree to represent you exclusively. In the absence of such an agreement, "your" agent could be legally and financially obligated to work for the seller's best advantage." Mike Butler, "Let's Make a Deal", Better Homes & Gardens, June 2007 p. 192

"In a market in which negotiation counts, you'll do well to hire a buyer's agent to help you identify good prospects and to frame and negotiate your offer." From Kiplinger's Personal Finance magazine, November 2007 "Sweet Deals on New Homes" http://www.kiplinger.com/magazine/archives/2007/11/newhome.html

"A growing number of real estate agents are working exclusively for the buyer. Instead of selling a client on a certain home or neighborhood, they can focus on the best home at the best price." More agents work for homebuyers, Friday, November 16, 2007 By STEVE BROWN / The Dallas Morning News, http://www.dallasnews.com/sharedcontent/dws/classifieds/news/homecenter/realestate/stories/class111607dnbusbuyers.b352df6.html

"A good way to get a broker who has no such conflicts of interest: The National Association of Exclusive Buyer Agents... can help you find a buyer agent near you who pledges to help you get the best deal possible and has no ties to sellers' agents;" SmartMoney Magazine December 2006 http://finance.yahoo.com/real-estate/article/101456/10_Things_Your_Real_Estate_Broker_Won't_Tell_You

"It could pay off to hire a buyer's agent to help you identify good prospects and negotiate a winning offer." Kiplinger's Personal Finance Advisor, November 2007

"Operating under a strict code of ethics and pledging undivided loyalty, NAEBA members... are able to address only buyers' needs and concerns without being distracted by the business of managing sellers and their listings.

"There's also the potential for a conflict of interest should a single brokerage represent both buyer and seller in the same transaction, something called "dual agency," a practice that's outlawed in some states...

"Buyers who want exclusive representation should seek NAEBA certification, a written representation service contract and a track record of satisfied customers." Realty Times, November 2007 "Under-Reported Concerns Of Buyers Exposed" http://realtytimes.com/rtpages/20071116_buyerconcerns.htm

Money Magazine
http://money.cnn.com/2007/12/05/real_estate/freebies.moneymag/index.htm?postversion=2007120609
Freebies from home builders
By George Mannes, Money Magazine senior writer
December 9 2007: 6:32 AM EST

But not all buyer 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," he says. To get around that, you can find a buyers-only agent at the National Association of Exclusive Buyer Agents." Newsweek - July, 16, 2007

"Exclusive buyer agents never list property. They never sell. And... unlike many agents working at big real estate firms, they will not have their loyalties divided between representing a buyer and a seller."

"As a buyer, it's always beneficial to have someone carry your spear in negotiations with a seller or builder. And it's best for the buyer if the agent never takes listings, since you never have to worry about divided loyalties." Real Estate Journal (The Wall Street Journal Guide to Property), Finding the Best Match When Shopping for a Buyer Agent, JuneFletcher, April 9, 2007
http://www.realestatejournal.com/columnists/housetalk/20070409-fletcher.html

The idea that exclusive buyers agents can't understand a seller's perspective is hogwash... very few exclusive buyers agents have never taken a listing in their lives. Most choose that path after trying the more traditional sellers-agency route. They simply decide that they prefer working with buyers.
Exclusive buyers agents can focus on their customers and their needs in a way many sellers agents can't. They don't have to spend their time holding open houses, staging properties, or doing all the other marketing tasks that consume much of a listing agent's time. They can concentrate on previewing homes, investigating comparable houses, helping the buyer understand financing options, negotiating the deal and making sure all the inspections and escrow items are done in a timely manner.
What's more, home shoppers who use exclusive buyers agents don't run the risk of falling in love with one of their agent's own listings. When that happens, the agent becomes a dual agent -- beholden to both the seller and the buyer, and thus, beholden to no one. Because this limits the amount of advocacy and advice the professional can give either party (for instance, a dual agent can't tell the seller the highest price that a buyer is willing to pay), it's illegal in some states.

...even under the best of circumstances, both a buyer and seller give up something in a dual agency situation -- while the agent pockets more than he or she usually would in commissions.
Good for the agent, but not so good for you.
-- June Fletcher is a staff reporter at The Wall Street Journal and the author of "House Poor" (Harper Collins, 2005). Her "House Talk" column appears most Mondays on RealEstateJournal.com.
http://www.realestatejournal.com/columnists/housetalk/20070416-fletcher.html

"Hire a broker who will work for a set fee or will sign a contract stipulating that his or her cut will be the same for any home you buy." George Mannes, Money Magazine 4/11/2007
http://money.cnn.com/2007/04/09/real_estate/buyer_strategies.moneymag/index.htm

"REAL ESTATE
No Time to Go It Alone
From Kiplinger's Personal Finance magazine, March 2007
"Now more than ever, you need someone in your corner to help you fight for the sale."
http://www.kiplinger.com/magazine/archives/2007/03/sellers.html

"If you're a buyer, you might prefer an exclusive buyer's agent to one who also lists homes. By hiring a representative who works on only one side of the transaction, you'll get a specialized agent who probably won't have a conflict of interest..."Wall Street Journal Online
http://www.realestatejournal.com/buysell/agentsandbrokers/20060829-hoak.html

Dual Agency
What consumers want on real estate Web sites
NASHVILLE, Tenn. (June 5) -- Accent Realty Group, an exclusive buyer brokerage firm based in Nashville , has released survey showing what kind of information most consumers want when visiting a real estate Web site.
When participants were asked what they considered critical information to have on a real estate site, respondents said:
Search for homes - 85.7%
Local school information - 42.9%
Local demographics - 41.3%
Local crime rates - 57.1%
Local tax information - 28.6%
Sex offender registry information - 14.3%
Broker owner Pam Rumley said consumers also were polled on their understanding of brokerage relationships.
The study found that that most consumers are unfamiliar with the terms “dual agency” and “facilitator.”
She said more than 50 percent of respondents “had no idea that there were different kinds of Realtors. People are apparently not aware of the conflict of interest that exists in many real estate transactions,” she said.
The survey also indicated that homebuyers do not want a lot of contact with a real estate agent until they are ready to buy, they will initiate the relationship. Almost all wanted communication by e-mail as opposed to telephone conversations.