Exclusive Buyer’s Agent FAQs
1. Are there different kinds of real estate agents?
Yes, basically there are two different kinds of real estate agents; Traditional Agents and Exclusive Buyer Agents.
Traditional Agents can work with both buyers and sellers. Exclusive Buyer Agents only work with buyers, never sellers .Traditional Agents can then be further subdivided into Seller’s Agents, Buyer’s Agents and Transaction Brokers. Agents that work as Transaction Brokers basically just manage the transaction. Seller’s Agents have a signed contract with the sellers to get the best price and terms for the sellers. Buyer’s Agents have a signed contract with the buyers to get the best price and terms for the buyers.
2. What’s the difference between a Buyer’s Agent and an Exclusive Buyer’s Agent?
A Buyer’s Agent may write into their contract with you that if you become interested in one of their listed properties, they will switch over to becoming a transaction broker, representing neither you nor the seller. Since Exclusive Buyer’s Agents never list properties they will never switch away from the exclusive representation of their client.
3. How do you get paid? Do I have to pay you extra?
No, we are paid the same way that all real estate agents are paid. When a listing agent signs a contract with a seller to help them sell their house, the agent and the seller agree on a commission rate, based on the final sales price. If the listing agent is a member of a Multiple Listing Service (MLS), they get the seller’s permission to list the property through the MLS. the listing agent then offers to share their commission with whatever other agent brings the buyer to closing. The percentage to be given to that broker is disclosed on the MLS listing. At closing, the agent’s office is given their check and it comes out of the seller’s proceeds. The agent’s office, gives a specified portion of the check to the agent (depending on office policy) and retains the difference themselves.
4. Can I use as many real estate agents as I want?
When you first decide to start looking at properties, feel free to interview several agents until you find one that you feel comfortable working with. But it is good to decide on one agent to work with, before you start using up too many agents’ time. Since agents are only paid if you end up buying a property, each agent is giving of their time with the expectation that should you find the right property at the right price, that you will eventually make a purchase. It is not really fair to use several agents’ time since only one stands a chance of getting paid.
5. If I’m interested in a house I see while I’m driving around, I just call the agent whose name is on the For Sale sign, right?
The person whose name is on the For Sale sign works for the seller. they either have a Seller’s Agency agreement with the seller, promising to get the best price on the best terms for the seller, or they have a Transaction Agency agreement, which means they are technically representing neither the seller or the buyer. You could certainly ask the agent in which capacity they are working. If they are working as a Seller’s Agent, you do not want to be talking to them. You want to get a Buyer’s Agent who will represent you throughout the negotiations.
6. Can you help me sell my house?
If you decide to sell your home we can certainly refer you to a few listing agents who we think will best serve you as a seller. Different agents have various specialties, track records and personalities. Since we have worked with all of them -from the other side of the fence, so to speak- we can suggest who you should interview. We cannot however represent you or list your property, since doing so goes against our office policy and mission.
7. Why does listing my house for me go against your office policy and mission?
As Exclusive Buyer Agents, we offer to our clients our unique ability to help them discern between all properties equally.
Since we have no listings, we have no properties that we are interested in selling over another property. We take this so seriously that office policy does not allow to even sell/list our own homes. We have to hire a listing agent to do it for us!
8. Would you recommend I use a discount listing broker or a regular listing broker?
In our current market, which has many more sellers than buyers, I think a regular, full-service listing agent can help you in many ways a discount broker cannot. First, they will help you price your home correctly/competitively. Most discount brokers leave that up to you, and frankly you probably don’t have access to all of the information available to agents via the Multiple Listing Service, not to mention the full-service agent’s extensive personal understanding of the market. Secondly, the full service broker markets your property extensively within their developed systems. With over 80% of all buyers starting their search online, and with our resort community finding many of the buyers from around the country, in fact the world, it is important to have good marketing. Thirdly, the full service agent can represent you throughout all of the negotiations and hitches that can inevitably arise.
9. Can you help me buy a “For Sale By Owner” property?
Yes, in most cases we can. Most “For Sale By Owner” property owners are willing to work with Buyer’s Agents to one extent or the other. Many are willing to pay our commission and appreciate our assistance with the various steps involved in the home buying process. Others are not willing to pay. If this is the case, we ask the buyer to pay our commission. Often, the savings we gain for our client, through negotiations on both price and terms and peace of mind, covers the commission they pay.
10. Can you help me buy a “short sale” property?
Yes, we can help you buy a “short sale.” Short sales are listed in our Multiple Listing Service, and we can help you buy any of those properties. Sometimes the commission amount is known and posted on the MLS sheet. Other times it is to-be-determined (TBD) by the lender with the final settlement. Short sales can be very time consuming and frustrating, and often the commission paid is less than would be paid on a regular sale. Therefore, we ask our clients to be willing to pay us the difference between what we would normally be paid for an equally priced non-short-sale property and what the lender pays in the end, if in fact, and only if, there is a difference.