This Realty Times Article Highlights Information That is Valuable to Home Buyers

This Realty Times Article Highlights Information That is Valuable to Home Buyers
Including a link to The National Association of Exclusive Buyer Agents

It talks about the disadvantages of "one stop shopping" (as I also mention in my my recent blog post) -- how agency disclosure is at very low levels, how the public really doesn't know the difference between a so-called buyer agent (who may list property 95% of their time - but only calling themselves a buyer agent when they are working with a buyer) - and an Exclusive Buyer Agent.

In fact - many traditional Real Estate agents haven't even heard of an Exclusive Buyer Agent - and have no clue what they are...

Check out the link - it's good reading....

Evidence That Traditional Agents Can Have Home Showing Biases

Some people don’t believe me when I tell them that “buyer agents” at traditional firms tend to push their own listings over others…due to perhaps getting in-house spiffs…. Remember - as a home buyer, when you hire an Exclusive Buyer Agent to represent you - that agent and their company never list property for sale - and so there is no biased home showing or dual agency conflicts of interest situations.

This is evidence….

“Besides camaraderie, @properties uses other techniques to encourage sales, including rewarding the two brokers who sell the most properties listed in-house with overseas trips. One quarter last year, the winners went to Italy. Another time, to Paris. And any broker who sells $10 million worth of real estate, in any type of transaction, is offered the choice of a Rolex or a Cartier watch.”

Obviously – when an agent pushes their in-house listings or worse yet - their own listings - the buyer experiences biased home showings - and can experience dual agency conflicts of interest with the buyer being equally represented with the seller. The buyer doesn't have someone fully on their side in that case – and doesn't have all the information available to get a good buy on a property that they would have had - had their agent not declared "dual agency" on them.

CNN Money article about the benefits of using an Exclusive Buyer Agent

A new article on CNN Money talks about how people should use an Exclusive Buyer Agent.... Unfortunately - the terminology they used was "buyer agent" in this article at CNN Money

But the point is clear... use an agent that is on your side - and the only type of agent that you can be assured of that does that - is an agent that doesn't list properties - so they can give you unbiased home showing, no conflicts of interest, and always be on your side 100% of the time.

I think most people get confused - as there are so many terminologies in Real Estate that they don't understand... An agent that works at a company that lists property for sale calls themselves a "buyer agent" - that is what most people think they are getting - someone that will always be on their side 100% of the time.

It is too bad for the consumer - that that isn't the case. These agents can get into what is called "dual agency" situations where they are representing you and the seller equally. Unfortunately - there is only a 20% upfront disclosure rate by "buyer agents" about how they can get into such conflict of interest situations - even though the law says that they should always disclose that they could get into that - with the potential client (upon first meeting.)

Without "named differention" the consumer can get confused. Hmmm - buyer agent - sounds like they will be representing my interests 100% of the time...

That is what is so nice about the use of the term "Exclusive Buyer Agent" - because officially - it means that the agent and their company don't list property for sale - and so they can never get into a conflict of interest situation.

In any case - though they blew that terminology in the article -- that is what it is talking about...

And even more unfortunately - many traditional agents sometimes use the word "Exclusive Buyer Agent" - when they aren't - which confuses the public even more.
What is what? What kind of representation is someone giving me? What name can I trust? What does the name mean? etc.