Types of Realtors

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    Dual Agents

    A dual agent is one that works for the buyer and the seller in the same transaction. Dual agency isn't legal in Texas, but there is a way around the law that works against both Sellers and Buyers. Should a Texas Realtor wish to sell a Seller/Client's house to one of their Buyer/Clients, they use a third party in their office to handle negotiations for one of the parties. The only party that wins here is the broker!

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    Buyer Agents

    Buyer's agents work for companies that represent both buyers and sellers (Re/Max, Keller Williams, Ebby, C21, etc.). There are incentives and pressure for these agents to try to sell in-house listings, so they really aren't working for the buyer, even if they claim otherwise. If a Realtor works for a company that works with both buyers and sellers, they are NOT an Exclusive Buyer Agent.

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    Exclusive Buyer Agents

    Exclusive Buyer Agents (EBAs) work solely for buyers, avoiding the conflicts of interest inherent in the traditional seller-oriented purchase transactions. This unique relationship of committed trust and care assures buyers the best possible homebuying experience. For those who have used an EBA, they know it's a win-win situation. In this market, more so than ever before, it's in your best interest to use an EBA.

Studies

A study by Sprint found that "232 relocating Sprint employees who hired buyer's brokers paid an average of 91 percent of a home's list price. People who used traditional agents typically paid about 96 percent. On a house originally priced at $150,000, that's a difference of $7,500." Source: Money Magazine.

A study conducted by Chandler & Chandler confirms that property purchased through an alliance with an EBA shows a 67% greater appreciation in value. Additionally, a survey conducted by the National Association of Exclusive Buyers Agents (NAEBA) found that among survey respondents, there were only 15 foreclosures out of 1,849 closings. That represents a foreclosure rate of just 0.8%, compared to the nationwide rate of 1.84% in 2008.

Exclusive Buyer Agency

Any Realtor can SAY that they work for the buyer, but if they work for a company that takes listings (like Re/Max, Ebby, etc.), they are NOT an Exclusive Buyer Agent! Exclusive Buyer Agents (EBAs) represent buyers 100% of the time. They work for companies that never take listings and never represent sellers. There is never a conflict of interest that will jeopardize your negotiating position. Our job is to help you buy the home of your choice at the best possible price and with the best terms. And since our fee is paid out of the seller’s proceeds at closing, there is no cost to you for our services.

Don’t confuse Exclusive Buyer Agents with a regular Buyer’s Agent, who works for the seller one day and the buyer the next. A “Buyer’s Agent” is simply a “Dual Agent” in disguise, and “Dual Agency” is the worst case scenario for the buyer. When you want to buy a home without getting ripped off, hire an EXCLUSIVE Buyer Agent.

HelpUBuy America has been protecting the rights of homebuyers since 1995. We have a stellar reputation with the Better Business Bureau, the Texas Real Estate Commission, the National Association of Exclusive Buyer Agents (NAEBA), and Consumer Advocates in American Real Estate (CAARE).

Dual Agency – The Nightmare Scenario

The following is an example to illustrate what it is like to work with a dual agent. Suppose you drive by a house that interests you and notice that there is a Century 21 sign in the yard. You decide to call the number printed on the sign, and a very nice Realtor answers the call. This Realtor was hired by the owners of the house to sell their property and get them as much money as possible. On the phone, the Realtor offers to show you the house, so you set up a time to meet and view her listing. You like the house, but are not ready to commit, so the Realtor offers to show you some other homes that you might like. While looking at the first house, the Realtor represented the seller. Now they are showing you other agent’s listings in which they would represent you as a buyer’s agent, should you opt to buy one of those homes. In the meantime, they’ve asked you all kinds of questions and have a clear picture of your purchasing power and the level of your motivation. If you decide to buy the first house they showed you (or any of their other listings), they’d have to turn you over to someone else in their office, but would be legally obligated to tell their seller/client everything they know about you. And, from the seller’s standpoint, the agent used their house as a source of buyer leads. The seller most likely shared all of their secrets with this agent, only to have that information used against them if both the buyer side and seller side of the transaction are handled in-house with the same broker. It’s a convoluted mess, it’s unfair to both the seller and the buyer, and the only ones who win here are the Realtor and his/her broker.

Endorsers of Exclusive Buyer Agency