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. Kiplinger. “Hire your own agent.” June 7 2011 http://www.kiplinger.com/magazine/archives/2007/03/buyers.html
If you want representation, work with a buyer broker.
They are legally obligated to represent your interests in any negotiations with sellers. Consumer Federation of America. Changes in Real Estate Agent Representation. P.4 http://www.consumerfed.org/pdfs/realestagn.pdf
Sellers’ agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer. … A buyer who relies on the seller’s agent or on dual agency does not receive the same degree of legal protection as that afforded by an agent acting solely on behalf of the buyer. Realty times “Oklahoma Supreme Court slams real estate commission” dated 9/24/1999
exclusive buyer’s agent’, who will be working for you. U.S. Department of Housing & Urban Development
It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an ‘exclusive buyer’s agent‘, who will be working for you. U.S. Department of Housing & Urban Development, “Shopping for Your Home Loan: HUD’s Settlement Cost Booklet.” Rev. Dec. 2009. P. 6 http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12164.pdf
Home truths: Know before you buy BUYER BEWARE Even in a favorable market, house hunters should be cautious.You can’t get more direct than this e-mail we received from Maria Rosenfeld of Miami: “I’m a first-time home buyer and need help on getting started. I don’t know how to buy a home. What are the steps I need to follow?
”Even if you’ve been in the real-estate game before, today’s market is confounding. An estimated 1.1 million homes are in foreclosure, the most since 1979. And it’s not just subprime mortgages that are a problem; the default rate for borrowers who qualified for prime loans is climbing as well.
“Buying, selling, remodeling” offers advice for consumers who face a variety of scenarios in today’s fragile housing market. Sellers are obviously in a tough position. And we’ve been hearing how great it is to be a buyer right now and how it may be a good idea for investors to pick up a house or two while prices are low. I turned to our finance editors at Consumer Reports, our finance advocates at Consumers Union, and experts at other consumer groups for their advice. They had strong words of caution.A home is to live in. For most people, seeing real estate as an investment that will surely appreciate is risky business.
For one thing, while prices are already down in many parts of the country, they might go lower. So the cheap house you buy now could still sink in value. And while we’ve become accustomed to 6 or 7 percent returns on real estate, historically prices have just kept pace with or barely exceeded inflation. It’s probably wise to buy a home you want to live in rather than an investment with four walls.Choose your mortgage (and your broker) carefully.
The mortgage broker may be more focused on selling you a mortgage than on getting you the best deal—that’s your job. Find out what you can afford and the best terms for you; up to half of borrowers who took a subprime loan would have qualified for a conventional mortgage with better terms. Start by going to www.bankrate.com or www.hsh.com for worksheets.
Don’t count on refinancing out of a bad loan; falling home values could prevent that.Search on your own terms. Once you have a clear idea of your budget, your hunt should be easier. Consider an exclusive buyer-broker who will represent only you, not the sellers. Nonexclusive real-estate agents tend to show you their own listings first, since they won’t have to share the commission if they represent both the buyer and the seller.
Then they’ll probably show you their firm’s listings, since they stand to gain from those sales as well. It can help to search online first and target some homes that might be right for you, no matter who has the listing.
What Is A Real Estate Agent?
What Is An Exclusive Buyer’s Agent?
Why Use An Exclusive Buyer’s Agent?
The Case For Buyer Agents
How Do I Find An Exclusive Buyer’s Agent?
National Assocation Of Exclusive Buyer Agents
Real estate glossary
Learn About Different Types of Buyer Agents
An Exclusive Buyer’s Agent or EBA is someone who is an expert in the buy-side of a real estate transaction. Just as you would see a cardiologist for your heart or would hire an electrician to wire your home, an EBA is a specialist in the real estate industry. Most NAEBA member EBAs have years of experience and have learned to strongly negotiate on a buyer’s behalf, what to look for when viewing a property, and how to overcome obstacles that a buyer may face along the way.
Exclusive Buyer’s Agents give buyers their undivided loyalty. Most real estate agents and buyer’s agents work in traditional brokerages that take listings. Because of that, they have an inventory that they must sell. In addition, if that brokerage brings both the buyer and the seller into the transaction, they get to keep the entire commission, making the transaction more profitable. These can be strong incentives to steer a buyer to one of their own listings. It also means that their buyer loses many of the benefits of hiring a real estate agent including negotiating on his behalf as well as the agent’s ability to point out reasons why the buyer might not want to purchase that particular property. Since Exclusive Buyer’s Agents must work in a brokerage that only works with buyers and never takes listings, a buyer can rest assured that the EBA will remain on their side throughout the entire transaction, getting the buyer the lowest price and the best terms possible.
National Association of Exclusive Buyer Agents Standards of Practice
Principles That Buyers Can Count On
The National Association of Exclusive Buyer Agents is an independent alliance of real estate professionals who provide client-level services and whose real estate companies do not accept seller-property listings. We, the members of this Association, set forth the following principles as the minimum professional standards which will guide us in serving our Buyer-Clients. An Exclusive Buyer Agency relationship requires that we operate according to these fundamental commitments. The essence of Exclusive Buyer Agency practice is undivided loyalty to our Buyer-Clients. We recognize that it is our duty as real estate professionals to serve our clients with fidelity to these Standards of Practice. We also pledge to adhere to the Code of Ethics established by this Association.
A. SERVICES PROVIDED IN THE INITIAL COUNSELING INTERVIEW PHASE
Standard A(1): A Buyer Agent will disclose that he/she is a Buyer Agent and define his/her agency relationship to a prospective Buyer-Client. A Buyer Agent will explain how different agency relationships may affect the level and type of service a
Buyer-Client may receive from a real estate agent.
Standard A(2): Before entering into an agreement with a Buyer-Client, a Buyer Agent will determine if any conflict of interest may exist on his/her own part or that of a Buyer-Client. If a conflict should occur, a Buyer Agent should be precluded from representing a Buyer-Client, who should have the option of seeking representation elsewhere.
Standard A(3): A Buyer Agent will provide a copy of these professional Standards and answer any questions a Buyer-Client may have about them.
Standard A(4): A Buyer Agent will enter into a written Agency Agreement with his/her Buyer-Client. The agreement will include beginning and ending dates, the service fee structure and payment method, and the responsibilities of both parties.
Standard A(5): A Buyer Agent will make him/herself available to his/her Buyer-Client in a timely manner.
Standard A(6): A Buyer Agent will pledge absolute confidentiality to a Buyer-Client when representing him/her, thereby protecting that Buyer-Client’s ability to negotiate all aspects of the transaction.
Standard A(7): A Buyer Agent will counsel a Buyer-Client regarding his/her financial qualifications and will assist that Buyer-Client in seeking and working with mortgage lenders. A Buyer Agent will not steer his/her Buyer-Client to any one lender but instead will assist him/her in evaluating interest rates and closing costs.
B. SERVICES PROVIDED IN THE GENERAL PROPERTY SEARCH PHASE
Standard B(1): A Buyer Agent will discuss objectives and preferences in property styles, age, floor plans, and so forth with a Buyer-Client, then develop from this information a target property profile for him/her.
Standard B(2): Based upon the target property profile, a Buyer Agent and his/her Buyer-Client will determine the appropriate level of property preview services to be provided.
Standard B(3): With a Buyer-Client’s target property profile in mind, a Buyer Agent will search the real estate market, including properties for sale by owners and builders, to locate properties to show that Buyer-Client.
C. SERVICES PROVIDED IN THE PROPERTY SELECTION/CONTRACT OFFER PHASE
Standard C(1): A Buyer Agent will discuss and evaluate the properties viewed with his/her Buyer-Client, comparing each property shown with the target property profile.
Standard C(2): Before preparing an offer to purchase, a Buyer Agent will inform a Buyer-Client about any defects or problems he/she has observed or in any way discovered regarding the target property.
Standard C(3): Before preparing a contract offer on behalf of his/her Buyer-Client, a Buyer Agent will prepare a comparative market analysis, including explanations and documentation, to determine the target property’s market value. A Buyer
Agent will not prepare an offer to purchase a property he/she has not seen.
Standard C(4): Before a Buyer-Client signs an offer to purchase, a Buyer Agent will provide that Buyer-Client with an estimate of closing costs and, whenever possible, with the truth-in-lending estimate provided by the mortgage company.
Standard C(5): A Buyer Agent will counsel his/her Buyer-Client and explain the choices available in completing a real estate contract. This real estate counseling is based upon a Buyer Agent’s experience in negotiation and real estate business decisions and is not legal advice. Legal matters should be identified and a Buyer-Client advised to seek legal counsel where appropriate.
Standard C(6): Whenever possible, a Buyer Agent will prepare the contract offer on a form which has been designed to protect a Buyer-Client’s interest. A Buyer Agent will provide proper disclosures regarding agency representation and other matters as required by law.
Standard C(7): A Buyer Agent will develop contract negotiation strategies with his/her Buyer-Client, establishing pre-set limits on key points of negotiation when that Buyer-Client wishes to do so. A Buyer Agent will actively negotiate only on behalf of his/her Buyer-Client.
Standard C(8): Before submitting a contract offer to a Seller, a Buyer Agent will counsel his/her Buyer-Client regarding the time requirements specified in the contract and will encourage that Buyer-Client to have professional inspectors inspect the property if the contract is accepted.
D. SERVICES PROVIDED IN THE ESCROW-TO-CLOSING PHASE
Standard D(1): A Buyer Agent will counsel a Buyer-Client regarding the types of home inspectors, the suggested criteria for selecting home inspectors, and the comparative costs of inspection services. A Buyer-Client will select real estate inspectors. A Buyer Agent will encourage his/her Buyer-Client to be present during inspections.
Standard D(2): A Buyer Agent will notify a Seller or a Seller’s Agent in writing of inspectors’ findings and of corrections/repairs mandated by a Buyer-Client. A Buyer Agent will specify a Buyer-Client’s desire to proceed or cancel the purchase contract whenever such notification is required.
Standard D(3): A Buyer Agent will maintain contact with a Buyer-Client’s title company and mortgage company to make sure that his/her Buyer-Client’s interests are being protected.
Standard D(4): A Buyer Agent will review a settlement statement with his/her Buyer-Client at or before closing, if possible.
Standard D(5): A Buyer Agent will accompany a Buyer-Client on a property walk-through before closing.
Standard D(6): A Buyer Agent will attend a closing with a Buyer-Client. A Buyer Agent should be prepared to support his/her Buyer-Client’s position at closing.
Standard D(7): A Buyer Agent will keep records of transactions for a reasonable period of time and will provide this information to a Buyer-Client on request.
These Standards of Practice establish obligations that include all those consistent with the “Common Law of Agency” and are considered to be client-level, not customer-level, services. These obligations are, in many instances, higher than those mandated by law. If there is any case where the law requires a greater obligation than these Standards of Practice, then the requirements of the law must be followed. It is the duty of each individual Exclusive Buyer Agent to make himself or herself aware of the laws which may affect him or her.