The Exclusive Buyer’s Broker

Exclusive Buyer's Broker

Exclusive Buyer’s Broker

I’m Robert Owen Deane, an Exclusive Buyer’s Broker. I only represent Buyers, never Sellers in an agency relationship.

My loyalty is undivided, I am 100 percent loyal to you, the home buyer. My fiduciary responsibilities are always directed to your best interest.

Agency Relationships

Agency relationships are created when one person agrees to act on another’s behalf, or represent them in dealings with a third party. Once an agency relationship is established, agents owe their clients “fiduciary duties” of loyalty and obedience. They are typically required to place their clients’ interests ahead of their own, providing services with honesty and good faith while avoiding conflicts of interest or “self-dealing.”

Among the roles the typical real estate agent can play  are buyer’s representative, seller representative or dual agent (an agent working for both the buyer and the seller at the same time). It is important that you know which role your agent is fulfilling, you don’t want to retain the seller’s agent when you are buying a home – do you?

What is a seller’s agent? Think of an agent walking in the shoes of the client…and by law who must put the client’s best interest first.

Remember that while the seller is paying the commission, you are bringing the money to the table. The cost is the same to the seller if the commission is shared by the buyer’s agent and the listing agent or if the listing agent retains the full commission. While real estate transaction do not have to be adversarial, we acknowledge that if on no other point than the price buyers and sellers have diametrically opposed opinions.

[blockquote]How can the same agent represent both the buyer and seller at the same time? While it is legal in California, it is not legal in all States and some REALTORS doubt the ethics of representing both the buyer and seller.[/blockquote]

 The Beginning Determines the End

How often have you met an agent at an open house or called to see a listing and entered a conversation about your goals and objectives in buying a home?

Unfortunately, buyers often tell the agent things that could, if  known to a seller,  compromise their bargaining position in buying a home.

This meeting is termed a “first substantive contact”, and the agent should stop you, explain his or her relationship to the seller (providing you with Agency Disclosures) and give you a choice on how you would like to move forward.  This disclosure must be made before substantive discussion takes place with you about your real estate needs and financial capabilities.

You need to know because you could unknowingly be proving information that benefits the seller’s agent.These disclosures should be signed at the first meeting, but  according the the  National Association of REALTORS®, such disclosure statements are only sighed at the first meeting 31% of the time – 32% of the time they are never signed or the agent doesn’t remember.

Dual Agency is a Conflict of InterestWhy is this important?  If you met the agent at an open house or by calling the listing agent, you are talking to the Seller’s agent, or a subagent of the seller. Their primary loyalty is to the seller. Working for you as a buyer will create a conflict of interest.

Or perhaps you selected an agent  recommended by friends or family and arranged to see some homes you had identified from your internet search.  The home tour may start without encountering this conflict of interest but if you choose to view any listing represented by your agent’s broker, your relationship changes and not all agents make a point of informing buyers of this change.

[quote_right]The only persons to benefit from a Dual Agency is the Broker and listing agent – they get both sides of the commission; doubling their income.[/quote_right]You have entered a Dual Agency; your agent is now representing both you as the buyer and the Seller.  I would encourage you not to allow an agent with whom you are working to engage in dual agency. As long as they are showing you homes not listed with their Broker, you will not encounter dual agency.

Dual Agency

[quote_right]The responsibility of a Dual Agent is to obtain the best deal for the seller. Moreover, while they are restricted to giving the buyer only material facts about the property, they can report everything they know about you, the buyer, that would assist the seller in achieving the highest price. [/quote_right]Because all real estate agents are licensed under a real estate broker, it is possible to work with one agent who is licensed by the same broker as the listing agent. This situation creates a dual agency. The agents could work at separate offices and be strangers to each other, but since they are licensed by the broker, they are still operating under dual agency if one agent represents the buyer and the other represents the seller.

California allows dual agency but it is not something high on the mind of buyers as they start their home search. Most buyers don’t realize their agent of choice may be subject to dual agency. Dual Agencies create a conflict of interest. How could it be otherwise when a seller’s best interest is to get the highest price and the buyer’s to get the best possible price and the agent is the in the middle of the negotiation?

 

 Exclusive Buyer’s Agents Never Represent the Seller

In this video you will learn about Exclusive Buyer’s Brokers – the purist form of buyer’s agent – and how a Dual Agency is a conflict of interest in meeting a buyer’s full needs in a real estate transaction. 

Only Exclusive Buyer’s Agents represent buyers exclusively. 

Loyal to You from Deane on Vimeo.

I Hope to Be of Service

Contact me to discuss your needs and we can create a Buyers Representative Agreement to protect both our interests in moving forward.

This Agreement Between Home Buyer and Buyer’s Agent clearly specifies our mutual obligations; but don’t worry it is far from an open ended contract.  You specify your exact needs – limiting your contractual obligations to Specific Areas, Price Range, Location and Time Frame.  This contract is structured to provide you with the services you need throughout the Home Buying Process, from defining your needs to collecting your keys. I require a contract as I will be spending an extraordinary amount of time in meeting your needs, with mutual loyalty we both benefit. And yes, my commission is paid by the Seller.

The following presentation will answer more of your questions about Exclusive Buyer’s Agents.  This video covers an  interview with two executives of  the National Association of Exclusive Buyer’s Agents

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