What is a Buyers Agent?
As exclusive Buyers Only Agents, we are devoted to working only with buyers seeking to invest in Southern Arizona real estate. Our firm, BUYERS ONLY REALTY, does not take listings and we do not practice DUAL AGENCY. That is, we do not represent sellers nor do we attempt to represent both buyer and seller simultaneously (dual agency). We owe complete fiduciary loyalty to the buyer.
We do work with all real estate agents in the area and are members of three local Multiple Listing Services. We also work with many of the "For Sale by Owner" properties. Through us you have access to the entire Southern Arizona real estate market whether you're considering new homes, resale homes, land, or for sale by owner properties.
Our clients are often surprised that we don't try to SELL them on the homes and land we show them. We usually point out what we see as the good and bad points of properties that we tour. Our purpose is to help buyers find the one property that will best suit them. We have no vested interest in any particular property. It keeps us objective and focused on our clients' needs rather than promoting a particular real estate companies properties listed for sale. So, we don't sell; we don't have to. Our clients tell us what they like and when they are ready to make an offer.
What is Dual Agency & why is it a disservice to buyers?
Say you've decided to have the "buyer specialist" at CBA Realty represent you in your search for a new home. Everything is fine until the agent shows you, as the agent inevitably will, one of CBA's homes listed for sale. It's inevitable because the agent is likely to earn a bonus if they sell you one of their company's own listings. Any time the focus of the search is on a CBA listing, "your" agent transforms, by law, into a Dual Agent because the agent is now required to attempt to represent the seller as well as you, the buyer, in the transaction. It's akin to having an attorney represent both sides in a lawsuit. I strongly believe DUAL AGENCY is to be avoided. At the very least, you have lost whatever advantage you might have had by employing a buyer's rep as well as the agent's objectivity regarding the property.
Why is a Buyer Agent a benefit to the buyer?
As Exclusive Buyer's Agents, we at BUYERS ONLY REALTY offer 100% loyalty and representation to buyers. Using our training in advanced negotiation techniques, we bargain hard for the best terms and price for the buyer.
The natural tendency for buyers, when they see an attractive property advertised, is to contact the listing agent directly. Seems to make sense because, presumably, that agent knows the most about that property. BAD IDEA! The listing agent is contractually obligated to obtain the best price and terms for the seller. The agent has already established a working relationship with the seller. He or she must not divulge any weaknesses in the seller's negotiating position.
An Exclusive Buyer's Agent, on the other hand, can and should use every legal and ethical device to obtain the most favorable outcome for the buyer through every step in the property buying process. We are committed to that objective.
Do all "Buyer Agents" provide the same service and loyalty?
Buyers are increasingly demanding buyer representation and many real estate agents have been advertising him or herself as a "buyer agent," "buyer's rep," "buyer specialist" or "Buyer's Broker." It makes an already confusing concept even more so. This concept needs to be addressed to differentiate between true buyer agents who represent buyers exclusively and those who continue to practice dual agency. If you were to ask the vast majority of so-called "buyer agents" the question, "Does your firm have real estate listings and do you ever practice dual agency?" - you would likely get, "Yes, but..." Don't buy the "yes, but..." The larger the firm (and the more listings it has) the more likely it is that a dual agency situation will arise and that agent will not hesitate to sell you his/her firm's listing (they usually receive a bonus for selling a company listing).
BUYERS ONLY REALTY is unique among Southern Arizona real estate companies in that we only represent buyers. We are truly exclusive buyer agents.
As long as the choice comes down to true buyer agents, your decision as to whom you want to work with is a matter of personal comfort level and confidence. But, do be careful of "buyer agents" in name only. The Accredited Buyer Representative (ABR) designation does not require that the agent represents buyers exclusively and fewer than 1% do nationally.
Are your fees high?
Our buyer representation does not cost the buyer any additional expense and usually saves the buyer because of our knowledge of the market, our reseach capabilities, and our negotiations on behalf of the buyer.
Do You Charge a Retainer Fee?
No. The practice of charging retainer fees, typically $300 to $1000 or more, deductible against the agent's eventual commission, is gaining popularity among Exclusive Buyer Agents. The rationale for it is threefold:
1. To cover some of the agent's upfront time and expenses in representing the buyer.
2. To screen out those prospective buyers who are unprepared to commit to the process.
3. To bind the buyer to the agent.
We find that the majority of buyers need time to check out Southern Arizona and the real estate market. It has been our experience that once we have begun to work with a client and they get to know us, they will continue to work with us and become our loyal clients. We have to earn that trust.
Once they are serious, though, we do ask two things. The first is to sign the standardized Buyer's Agency Disclosure form that we are representing them as an exclusive buyers agent. All agents are required to have this form signed by buyers. The second is to sign a standardized Exclusive Employment Agreement to employ BUYERS ONLY REALTY to represent you in your purchase of property. This form is for your protection from aggressive real estate agents that you may encounter (especially at an "open house" where the agent is representing the seller) and that we are your exclusive buyers agents. The National Association of Realtors Standard of Practice 16-13 requires agents to ask buyers whether thay are a party to any exclusive representation agreement before providing any substantive services. I would question the ethics of any agent that ignores this Standard of Practice.
BENEFITS OF EXCLUSIVE BUYER AGENCY
Avoids Conflicts of Interest
Agent Owes Complete Fiduciary Loyalty to Buyer
Agent Has Access to ALL Properties on the Market
Agent Thoroughly Researches Property Defects & Potential
Agent Strives, Ethically, to Gain Bargaining Advantage for Buyer
Agent Negotiates for Buyer to Get Optimum Contract
Agent Protects Buyer's Interests Throughout the Entire Process
No Additional Cost to Buyer
Buyer Often Saves a Lot of Money