So… what is an exclusive buyer’s agent (EBA) anyway?
An exclusive buyer’s agent is a different sort of real estate professional compared to a traditional agent, as they never accept listings and therefore never represent sellers. By eliminating the conflict of interest that comes with trying to work both sides of the deal, an exclusive buyer’s agent better serves the interests of homebuyers
OK… What exactly does this mean to me?
Say you’re driving through a Dallas area neighborhood, looking for your next home, or surfing the Internet for available Dallas area homes on a listing broker’s site. You see a sign in the yard (or contact info online) and call the phone number for more information. You of course want the best possible price and expert representation for what may likely be your largest personal transaction to date.
Guess what? While the agent on the other end of the line may be kind, responsive and helpful, they also represent the seller. This means they are legally obligated to represent the seller’s interests only, and tell the seller everything they can find out about you, including:
- The amount you are willing to spend.
- The maximum amount your lender has agreed to finance.
- Your time frame.
- Anything else that will help the seller get the maximum sales price possible.
On the other hand, they won’t tell you:
- The seller’s motivations.
- How to negotiate an offer.
- Problems with the home (other than required by law).
- Negatives about the neighborhood or schools
- Downward area trends in market value.
- About a lower-priced home that better meets your needs.
Wow… Does this mean that agents who take listings are bad?
Of course not! They’re just doing their jobs. They have what’s legally referred to as a fiduciary duty to the seller that naturally puts them in a position that is adverse to you. You need someone on your team that owes you the same fiduciary duty, not the seller. That someone is an exclusive buyer’s agent.
What does an exclusive buyer agent do for me specifically?
An exclusive buyer agent represents only your interests as a homebuyer. This means:
- Never representing a seller.
- Keeping information provided by you confidential.
- Assisting you with financing sources and programs.
- Providing all known information about the seller’s motivations.
- Pointing out both the positive and negative features of a home.
- Never pushing you toward a more expensive or inappropriate home.
- Providing comparable market data to evaluate a sales price.
- Helping you formulate a negotiating strategy.
- Writing an Earnest Money Contract that protects your interests.
- Coordinating with your inspector, lender, and title company.
- Managing the closing process and solving any problems.
Great! What else will an exclusive buyer’s agent offer me?
Based on your criteria, they will show you not only any home listed by any agent anywhere in North Texas, but they will also explore FSBOs (for sale by owners), foreclosures, and any other available home on the market. They have no vested interest other than getting you the home that you want. Plus, they provide you with free, full access to the Dallas Area Multiple Listing Service (MLS) for you to browse at your leisure. If you want more info about a particular home, they will track it down for you
What will this cost me?
Generally, not a thing. In the case of listed or new homes, they will be paid by the listing broker or the builder. In other situations, the contract for sale will add as a seller’s closing cost our negotiated commission.
Do you put all this in writing?
Absolutely! A written buyer agency agreement is the only way to expressly spell out an agent’s legal obligations to you during the crucial period before an offer is made. Don’t worry… they won’t try to bog you down and tie you up with a bunch of legalese.
Their written agreement with you:
- Is in plain English.
- Spells out our obligations to you.
- Identifies your criteria and parameters.
- Is cancelable by you at any time if you are not satisfied
Sounds like you need an exclusive buyer’s agent? For additional valuable information contact us.
