Types of Real Estate Agencies

Exclusive Buyer Agents only represent the home buyer-never the seller, and are required by law to get the lowest possible price and the best terms for the buyer.

The concept of a buyer's agent is recent-the first ones began appearing in the mid-1980s, in response to confusion over who the agents worked for. Under the traditional system, a single agent could work for a buyer and a seller-an obvious conflict of interest. His or her duty was to the person paying the sales commission, regardless of who first contacted the agent. As a result, agents didn't necessarily represent the buyer's

interests: as low a home price as possible and a full selection of properties from which to choose.

In contrast, a buyer's agent works exclusively for the home buyer, and cannot represent the seller unless specifically agreed upon by the buyer.

Buyer's agents are still a controversial topic in many communities, but most states now require your agent to disclose for whom he or she works.

Whether retained for a fee or paid a percentage of commission, a buyer's agent is contractually bound (for a negotiated length of time) to help clients realize the best possible price and terms when purchasing real estate. While traditional subagents and exclusive buyer agents are both responsible for viewing properties, evaluating neighborhoods and offering expert advice on services such as property inspection and mortgage lending, the advantages of contracting with an exclusive buyer's agent are readily apparent:

· Ability to disclose "inside" information about the seller's position that the subagent cannot legally divulge. Such information can benefit the buyer when making an offer to purchase real estate.

· The buyer's agent can work for the lowest sale price while the subagent legally cannot.

· Buyer will not be under pressure to purchase any

particular property since all sales will be commissioned under terms of the exclusivity contract.

· The agent's expertise in real estate can help a client comfortably negotiate the purchase and sales process.

When a buyer engages the services of a broker or agent then that buyer becomes the broker's client. This means the broker represents the buyer. The agent owes the buyer undivided loyalty, utmost care, disclosure, obedience to lawful instruction, confidentiality and accountability. The agent must put the buyer's interest first and negotiate for the best price and terms for her or his client, the buyer.

Exclusive Buyer Agents are specialists in the home buying process, and are 100 percent loyal to the home buyer 100 percent of the time. They research all available homes including For Sale By Owner (FSBO), new construction and Multiple Listing Services (MLS-other Agent's listings). An Exclusive Buyer Agent is a true fiduciary to the buyer, providing guidance throughout the purchasing process.