Frequently Asked Questions
Isn't
Using a Ordinary Real Estate Agent a Free Service to Me?
Don't
Agents Representing the Buyer Make More Money When The Buyer's Price Goes Up?
Why
Are There Home Showing Biases With Regular Agents - and Not You?
What
Are the Advantages of Signing an Exclusive Buyer Agency Agreement?
What
is an Exclusive Buyer Broker and an Exclusive Buyer Agent?
What
are the Other Advantages of Using an Exclusive Buyer Agent?
How
do You Ensure That There is No Conflict of Interest?
Are
there other Exclusive Buyer Brokerages / Exclusive Buyer Agents in Chicago's
Northwest Suburbs?
I
Am Going to Sell My Home - What Can You Do For Me?
What
Do Other Agents Think of You?
Why Smart Home Buyers Always Use an Exclusive Buyer Agent:
Most
of the public is not aware of it, but most real estate agents owe their loyalty
to the seller, not the buyer, whether the home you choose is listed by their
company or not. But we're different. Our loyalty is only to buyers.
Smart home buyers always use an Exclusive Buyer's Agent because they want and deserve the same treatment that the seller has. Those three key responsibilities -- undivided loyalty, full disclosure and confidentiality -- that you don't get from a seller's agent or buyer's agent (if you become interested in one of their own listings) can be very important to you. You want someone who will keep your best interests at heart to make sure that you don't overpay for a home. Too many agents try to get their buyer to come up in price "just to get the deal done" - instead of doing the hard work of researching all the facts - and then presenting those facts clearly to the seller and their agent.
Your agent should do more than show you homes, provide financing information and submit an offer. Your agent should make sure you are protected with extra clauses, and lead you in negotiations to an agreement that does not abrogate your rights.
Our job as Exclusive Buyer's Agents includes full disclosure to you. By using all of the tools at our disposal coupled with appraisal experience, it is our task to find out everything that we can affecting the value of the property that you want to buy - so that you can offer a reasonable price supported by facts. Information that we might obtain includes:
The information that many other agents cannot disclose - we must tell you about. You don't have to worry about what you are NOT being told - which creates a more pleasurable and relaxing home buying experience for you.
When you tell a seller's agent that although you could afford to spend more, but you only wanted to offer a lower amount, the first person that they run to tell - is the seller. Any information you give - is used against you. From your finances - to how much you love the house.
We contract with you - the buyer - for a rate which you are reimbursed for from the seller. We can always ensure that you are never out-of-pocket any money to us at closing. If the seller offers more than what you contract with us for - you, the buyer - pockets the money! Had you used a "traditional agent" they would have kept the entire commission. Traditional agents also get paid more when your purchase price goes up. They get paid a "cooperative commission" from the seller, from the money supplied by you.
Many of our clients prefer to incentivize us with a bonus when their purchase price goes down - making our financial interests - your financial interests. What we get paid is totally up to you - and totally negotiable. Because of your agreement with us - it also ensures that (unlike traditional agents) we have no home-showing biases regarding "steering you" to higher commission properties. (Usually (again - unlike traditional agents) - our buyer clients receive any bonuses offered by the seller.) If that weren't enough - with us, you'll typically get a better purchase price and seller credits and lower loan rate and fees - than if you had used any other type of agent.
Virtually every home on the market, new or resale, has a commission built into its price. The money our company or any other company earns comes from that commission. Remember…if you don't use our service…you may not be represented at all - or run the risk of being equally represented with the seller from a "buyer's agent" (who works for a company that lists property for sale who may show you many of their own listings.)
You can be comfortable knowing that we don't list property for sale - which ensures no "dual agency" conflicts of interest, unbiased home showing, and your ability to see wider selection of properties. You put up the money that everyone's commissions get paid out of - so shouldn't you have the best representation for your money? With Relocation Advisors Group Inc. you are entitled to, and will receive -- full fiduciary-level 100% representation with no possibility of "dual agency" or "designated agency" (dual agency in sheep's clothing), because our Exclusive Buyer Agency agreement Guarantees it! (and other great things that you'll never get from ordinary agents.)
Don't Agents Representing the Buyer Make More Money When The Buyer's Price Goes Up? Why would a Buyer Agent want to negotiate a lower price for the Buyers? Won't that reduce your commission?
We aren't a "Buyer Agent" (who works for a company that also represents sellers) - we are an "Exclusive Buyer Agent" (who works for a company that never represents sellers) - there is a big difference. Traditional agents and buyer's agents make more money when the price goes up. As Exclusive Buyer Agents - we usually have agreements with our buyer clients that allow us to get compensated a little bit more - the lower the buyer's purchase price is! Our financial interests are totally aligned with your interests!
Ever notice how that last agent you used (unless they were an Exclusive Buyer Agent) seemed to work you over to come up in price, rather than working hard to get the seller to understand the market facts? They just wanted to get the "deal done" quickly - and it was easier for them to get you to come up - than have the seller come down. This is why most buyers during the past two years in Chicago have really over-payed for the properties they purchased!
We've run into many people who said that their agent kept trying to get them to come up in price again and again - doing very little work to try to have the seller come down. The agents get paid more and got the deal done more quickly when they did the easy job of getting their buyer to come up in price. Our view is that you shouldn't overpay for a home. We'll tell you what market value really is -- and it is up to you - the buyer to decide what price you'd like to pay. If you want to pay more than market value - that is totally up to you - as you are the boss - but you'll know that we presented the true facts - without trying to "sell you" on a market value that may have been a bit higher than reality. IE - we tend to be conservative and realistic about market value - especially in this buyer's market and interest rate environment. Our job is to "protect you" - not "sell you" on a property.
Why Are There Home Showing Biases With Regular Agents - and Not You?
Traditional agents may show more of their own company's listings because they may receive a higher "in-house split" from their broker. They are also more familiar with their buddy at the next desk's listings. So - you might see more of their own company's properties for these reasons. Many times - they don't show FSBO properties, because they just don't want to take the time to do all the hard research, and many FSBO's may not offer them a commission - so they have no way of getting paid - if they don't have a contract with you. We show all FSBO properties to you - whether or not the FSBO offers a commission. (Ask us why and how if you are serious about becoming our client.)
Also - traditional agents get paid more if they show you and get you interested in a 3% + bonus property (called the co-op commission payout from an MLS listed property) versus a 2.5% - $100 property, or especially 2% properties - which they may avoid showing you altogether! What if that property was the perfect home for you - and you never got to see it? We get paid the same - no matter what type of coop property we show you. If the coop exceeds what you contracted with us for - you - the buyer client - get to keep the excess - not us.
Isn't using a Traditional Agent a "Free Service to Me"
Whether you realize it or not - if you use a traditional Realtor (with no contract at all between you), or a so-called "buyer's agent" who has no contract with you at all -- it isn't "free." They and their broker get paid a "cooperative commission" (note the word cooperative) from the seller with money that you - the buyer provides for the transaction. In most instances - about 2.5% of the purchase price.
When you have no contract with an agent - their brokerage makes whatever the offered "coop" is on the MLS listing sheet. It may be 2.5%, it may be 3%, it may be 3% plus a bonus - or it may be something else. Where does the money come to pay them? From you - the buyer. Everything is paid out of the funds that you provide - isn't it?
The seller calls the commission, their expense, in the settlement statement - and deducts it from their asset basis when figuring taxes -- but the money always came from you - didn't it? The commission to the brokerage that brought the buyer, AND the commission paid to the listing firm comes from you - the buyer.
What are the Advantages of Signing an Exclusive Buyer Agency Agreement?
The buyer agency agreement protects both of our interests - yours and ours. Unlike the buyer agency agreement used by most buyer agents that work for a company that list property for sale - our agreement protects the buyer's interests much more - and GUARANTEES that you are fully represented at all times - and that we have a fiduciary responsibility to you. Without it - you don't have those protections. Would your hire an attorney without a guarantee that they would fully represent you? Of course not. So - you surely don't want to take the risk that you aren't fully represented at all times - in the most important financial transaction of your life.
The services of an Exclusive Buyer Agent (EBA) and that of a "buyer agent" -- are two different services. The "buyers agent" (working for a company that lists property for sale) is a salesperson, and is trying to sell you something - a house (even ones that you may only be slightly interested in.)
EBA's are consultants. We offer a completely different service - pointing out the NEGATIVES about a house as well as the positives - providing unbiased research, facts, and home showing, and serving in a fiduciary capacity - with our financial incentives aligned your incentives, as the buyer. While "buyer agents" make more money when their buyer pays a higher price for a home - we make more when you pay LESS for a home! It's a WIN/WIN any way you look at it.
We put the financial interests of our buyer clients first - before our own financial interests.
Would you rather work with someone who is constantly giving you the high pressure sales pitch because they have to sell you something - (before you might buy through another agent) - because there is no exclusive agreement? Our agreement takes the pressure off of our relationship. It basically says that when you are ready to buy, you agree to buy through us. Like in a good marriage - where there is mutual loyalty - there is a better result because there is mutual trust and hard(er) work.
We think that's pretty fair, and it allows us to invest the time needed in order to do a good job for you. Otherwise we could be working hard for you for weeks, only to find out you strolled into an open house and bought through another agent. Because of the agreement, we can afford to invest a large amount of time to ensure that you get the best results. With an agreement - everyone knows what each party is promising the other - instead of leaving that up to chance. Make sense?
We
have the objectivity to be able to tell you to walk away from a bad deal. Our
clients appreciate our total honesty and integrity. They use us again when they
purchase in the future - and trust us to refer them to the best listing agents
when they sell. Simply - what we do is provide the best honesty and integrity
to home buyers. They don't have to worry about who's side we are on.
What is an Exclusive Buyer Broker and an Exclusive Buyer Agent?
What Are The Other Advantages of Using an Exclusive Buyer Agent?
Full Representation -- Have you ever felt like the agent you were working with really wasn't representing you when you bought? For example - they persuaded/intimidated you that "You shouldn't make an offer less than 98% of the purchase price...no one offers less than that around here..." or "You don't want to offend the seller with too low of an offer.."
Full representation = having someone work hard to get you the best possible price. This might mean digging up unique information about the seller, the property and the community so that the buyer (and seller) has the best information possible - to help make the best decision possible. (The seller's listing agent might not have told them the truth about recent comparable sales in the area - in an attempt to "buy the listing." Consequently - the seller's home might be way overpriced. We give them a "reality check")
Expert Research -- Have you ever felt like the agent you worked with really didn't listen closely to your needs - or that they didn't do much research and analysis? Ttraditional agents have to split their time between buyers and sellers - and don't have much time to serve their buyer by doing expert research. We specialize in only serving home buyers - and focus on YOU - not other clients.
Lower Purchase Price -- Our exclusive buyer agents help buyers buy homes for less, using a variety of powerful innovative strategic research and negotiation techniques. We "position" your purchase offer based on a variety of highly researched facts.
Using a buyer agent at a typical Real Estate company - you can get into a "dual agency" conflict of interest situation if you like one of the homes that the agent you are working with, has listed. Would you hire an attorney with the knowledge that your opponent could hire an attorney at the same law firm? Of course not! That is what "Dual Agency" and "Designated Agency" is. Even if the "buyers agent" doesn't become a "dual agent" - they are a "designated agent." They means that they are all on their own - without their broker's support - because their broker is legally representing the company's sellers. ALL agents in our company - including the broker are on your side. (We reject "designated agency")
Many home buyers actually try to buy a home through the agent who was holding an open house. That is the WORST possible thing a buyer could do!! The listing agent represents THE SELLER - NOT YOU! They will pass along information they know about you - to the seller - and attempt to get the highest price possible for the seller. Noting you say will be kept in confidence. You will be exploited ini every way imaginable.
In Illinois - disclosure of who represents who - and what type of agency relationship they will have with you - is supposed to be on first contact - and in writing. Unfortunately - this rarely happens in practice - which is a huge disservice to the consumer.
So - who's on your side? We are. You'll have it in writing.
How Do You Ensure That There is No Conflict of Interest?
At Relocation Advisors Group - we don't list property for sale - in order to ensure that we NEVER get into a "dual agency" situation. We are NEVER in a position where we are representing the seller. Home buyers and sellers are in an adversarial relationship. Information can be slippery - and shared between agents in Real Estate companies who represent both sides -- sometimes accidental - sometimes not. They have shared desks, shared file cabinets, shared fax machines and more..... Things are overheard.... Files can be left out on desks....
Buyers want the lowest price and best terms, and sellers want the highest price and best terms. if the seller has their 100% representative - the buyer needs theirs. We are just balancing the scales.
Are There Other Exclusive Buyer Brokerages / Exclusive Buyer Agents in Chicago's Northwest Suburbs?
No. We are the only Exclusive Buyer Brokerage (EBB) in Chicago's Northwest Suburbs. But there are over 3,000 of them across the United States. See the National Association of Exclusive Buyer Agents web site for more information about Exclusive Buyer Agents. If you are moving - we can refer to an Exclusive Buyer Agent at your destination - before you get there.
Call us at 847-566-7558 to arrange for a no-obligation meeting to discuss your needs, and how we can help you achieve your home purchase goals.
I Am Planning on Selling My Home - Do You Work With Sellers?
If you want to sell your home - at no cost to you - we will refer you to the best listing agent in your area. Wouldn't you like to know what the REAL TRUTH is about an agent, before you interview them to list your home? We'll tell you! If you'd like to have several agents to interview - we'll provide several. To top it off - we'll ensure that each referral agrees to include professional "home-staging" services (professional preparation of your home for sale) as part of their marketing services to you - at no cost to you! (Otherwise - they don't get your business) With home-staging - your home can sell for 3-5% more than without it. That is $15,000 more, on a $300,000 home for example.
What Do Other Agents Think About You?
They appreciate that we bring them very qualified buyers and that we stay on top of the details to make the transaction as smooth as possible. They may not like that we are tough negotiators - but all is fair in love and war, and they respect that.
They find that we are very easy to work with, once the price negotiation is completed. The listing agents appreciation that we base our negotiations on well-analyzed market facts - to help take the emotion out of negotiations. Both the seller and the listing agent find it hard to argue with thefacts. If they aren't based in reality - we feel sorry that they aren't being logical - but we move on to make a bid on another house where the seller IS being realistic.
We even run down quotes if there are problems with a home inspection, so that home inspection credits are based on realistic figures - not something that is "pie in the sky."
They think it is odd that we show ALL for-sale-by-owner homes because they don't. They think it is odd that we take the time and energy to do all the fact-based research necessary to ensure that our buyer doesn't overpay for a home - and present it to the seller. They think it is odd that we tell the buyer about the Interstate Highway going behind the home the next year and the other defects or disadvantages of a given property - without "selling them" on it. They think it is odd that we can have so many buyer clients - without even having to list property for sale to get them! They find it odd that we don't list property for sale - because they think that it would produce double the revenue for us. They find it odd that we aren't into "double dip" commissions - but just doing what is best for the buyer.
They think it is odd that we work so hard to get the buyer the best price and terms. Yet - they respect what we do, because they know that there is more integrity in what we are doing.
Absolutely! If you are selling a home by-owner, or before you list a property for sale with a Real Estate agent -- it is very smart to send our office a description of the home you have to sell. If we have any buyers in the market for that type of home -- we will call you for a showing appointment. You have no obligation. You sign no listing contract. We just bring qualified - well informed, buyers through your home.
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