Some brokers who call themselves buyer advocates are actually working for the firm that also represents sellers. A good way to get a broker who has no such conflicts of interest…an agent who pledges to help you get the best deal possible and has no ties to sellers.” –
Smart Money
"If your agent isn't a Buyer Broker - he works for the seller" - U.S. News & World Report
The relationship between home buyers and their agents has always been tenuous. Agents are paid a cut of the selling price, so the higher the price, the better for them -- but not for their clients.
One way around the conflict is to 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.
All contents © 2007 The Kiplinger Washington Editors
BUYERS: Find an Advocate
As a home buyer, it's important to know that no matter what agent you use, he or she is really working for the seller of the house (even if your agent hasn't met that person yet), since that's where the agent makes commission. The idea of this is scary, since you want to get the best deal possible -- and it seems you're playing for different teams. But there are ways to test agents' loyalty: See if they'll sign a Buyers Contract. In a nutshell, this is a form that would guarantee your agent will reveal all pros and cons of each house -- leak in the pipes, termite damage in the walls, asbestos found. If your agent knows about it, you will too. To find out more, check out the National Association of Exclusive Buyer Agents.
If this contract isn't available in your area, your agent's loyalty (or lack thereof) will be clear from the houses he or she shows you. Do the houses meet the description you wanted? Does the agent point out the houses' flaws?
www.thenest.com 2007
Newsweek
July 16, 2007 issue - House shopping? It's good to have help, especially in a buyer's market like this. If you're just driving yourself from one open house to another, you're missing homes buried in the multiple-listing services that only agents have access to. And an agent who specializes in helping buyers may be able to negotiate a better deal than you could.
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.
“Exclusive buyer’s brokers…are obliged to help you find the best deal and lowest price. Traditional agents may also work with buyers, but they’re technically working for the sellers and are supposed to go after that high-price, quick-sale goal.” – Kiplinger’s Personal Finance Magazine
"Most agents who show you homes don't represent your interest. They work for the seller, and their objective is to sell the house at the highest possible price."
- USA Today
"Exclusive agencies are the best. They remove any conflict of interests, which is the main reason for considering a buyer broker in the first place."
- Kiplinger's Changing Times
"Unlike the traditional agent who looks out for the seller, a buyer broker acts as your advocate, helping you find the home you want and then negotiating the lowest possible price. The best buyer brokers are so-called exclusive agents - that is they represent only buyers, never sellers. Buyers average a 5% savings when represented by a buyer's agent rather than a sales agent.”
- Money Magazine
"A buyer's broker . . . works for you. He or she is bound to keep your confidence and negotiate with the seller for the lowest price"
- Jane Bryant Quinn
Buyers: If you want representation, work with a buyer's broker. They are legally obligated to represent your interests in negotiations with the seller.
- The Consumer Federation of America
To protect themselves, buyers can retain their own exclusive representative, called a buyer broker . . . Your local agent may offer such services, but a buyers broker who also works as a seller's broker can sometimes end up on both sides of the deal.
- Business Week Magazine
“Many people don’t realize that, unless specifically stated otherwise, brokers are legal representatives of sellers.”
– Good Housekeeping
“A buyer’s agent could be helpful, but many who hold themselves out as buyer’s agents work for the same firms as listing, or sales agents. That means that their loyalties are muddied, and they not negotiate for the lowest price.”
- Consumer Reports
“With so many online tools for finding property, why would you want a buyer’s agent? There are a number of advantages.”
– CNN/Money
“Accredited buyer representatives can represent sellers or buyers. Exclusive buyer’s agents act as agents or advocates of the buyer.”
- Consumers Digest
