Frequently Asked Questions
(FAQ's)
 What is the difference between a Traditional
Agent and an Exclusive Buyer Agent?
- How much does it cost to retain the services
of an Exclusive Buyer Agent?
- Does an Exclusive Buyer Agent have access
to all of the same resources as a traditional agent?
- Exactly how does an Exclusive Buyer Agent
save me money?
- Who does the listing agent represent?
- What is the difference between a customer
and a client?
- Can an agent represent both the Buyer and
the Seller?
- How can I be sure the agent is representing
me as a buyer?
1. What is the difference
between a Traditional Agent and an Exclusive Buyer Agent?
The primary difference is that the Traditional Agent is
working in the best interest of the seller, and the Exclusive
Buyer Agent is working for the buyer. A Traditional Agent
lists properties and works with both buyers and sellers.
In order to eliminate the conflict of interest caused by
this type of arrangement, an EBA never takes listings and
only represents buyers.
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2. How much does it
cost to retain the services of an Exclusive Buyer Agent?
There is no additional cost for the services provided by
an EBA. Even if you purchase a home through a conventional
Realtor, a percentage of the sales price is used to compensate
both agents. The conventional agent and any sub-agent are
representing the seller. As long as you are paying for it,
you may as well get someone who is going to be working in
your best interest.
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3. Does an Exclusive
Buyer Agent have access to all of the same resources as a
traditional agent?
Of course! Your EBA is a licensed real estate agent and
belongs to local real estate groups, such as the Board of
Realtors. In addition to all of the homes listed on the
Multiple Listing Service, your EBA can show you for-sale-by-owners,
foreclosures, and new constructions. Best of all, your EBA
does not list properties, so s/he can give you a completely
unbiased look at all available properties. Some EBA’s
even specialize in new home construction; they can help
you locate lots, screen builders, select materials and much
more.
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4. Exactly how does
an Exclusive Buyer Agent save me money?
An EBA is legally and ethically bound to get the best
price, terms and conditions for the buyer. There are two
main ways an EBA will save you money--disclosure of all
information to the buyer and negotiating on the buyer’s
behalf.
Things an EBA will reveal to the Buyer:
- Willingness of the seller to accept a lower price
- Any information relating to the motivation of the seller
to sell the property quickly, such as relocation, purchase
of another home or financial problems
- Any information relating to the motivation of the seller
to sell the property quickly, such as relocation, purchase
of another home or financial problems
- Any facts that will either positively or adversely affect
the value of the property
- Any information that will enable the buyer to obtain the
property at the lowest possible price with the best possible
terms.
Negotiating Strategies:
- Making sure you pay no more than the fair market value
for the property
- Making termite treatment and repairs a part of the contract
- Obtaining favorable mortgage rates and terms
- Obtaining the best rates on home warranties and insurance
- Adding any special provisions to the contract that will
protect the best interest of the buyer and/or provide the
buyer with an additional concession or savings.
- Have a thorough inspection and re-negotiate contract for repairs.
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5. Who
The listing agent is bound by contract to represent the
best interests of the seller. Any sub-agent for the listing
agent is also representing the seller.
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6. What
is the difference between a Customer and a Client?
Webster defines a customer as; A person who purchases
goods or services.
A client is defined as:
- A person under protection of another.
- A person who engages in the professional advice or
services of another.
An Exclusive Buyer Agent is not selling anything to the
Buyer/Client. The EBA is hired by the buyer and is therefore
bound to provide service to the buyer that is always in
the buyer's best interest.
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7. Can an agent represent
both the Buyer and the Seller?
Can a lawyer represent both the defendant and the prosecutor?
Maybe, but not very well. If you are shown a home by an
agent that has that home listed, that agent has a signed
contract with the seller of the house stating that the agent
will protect the best interests of the seller. To be safe,
only select an Exclusive Buyers Agent who works for a company
that does not take listings. This eliminates the conflict
of interest. Also avoid any agent that mentions dual agency,
facilitation, transaction brokers, assigned agents, contract
brokers or designated agents; this type of representation
gives the buyer less than full representation. This type
of relationship is not beneficial for the buyer or the seller.
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8. How can I be sure
the agent is representing me as a buyer?
The key word in buyer representation is Exclusive. You
will want to make sure that neither your agent, nor your
agent's company, lists properties. You should also have
a signed agreement with your agent stating that s/he will
be representing your best interests. This signed agreement
makes your EBA legally bound to represent you--not the seller.
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