Welcome to Your 30 minute Home Buyer Boot Camp.
After reading through the subjects here on my site, you will be better equipped to by a home than 90% of the home buyers out there.
Please call or email or comment any questions you may have. Even if you are not buying in my area – I would be happy to assist you.
OK . . . Here we go !
Did you know that> 99.9 % of the real estate agents out there- that says – they represent buyers, also represents Sellers !
So . . . . ” How can an agent fully represent buyers, when they are also representing Sellers” ?
The answer is, “They Simply Cannot”
The Law in our state, ” and in most states”, significantly restricts and limits the agents ability to share ” Pro- Buyer information and negotiation strategies, when that agents company also represents sellers.
Traditional agents try their best to make it seem like they offer Exclusive representation on all homes.
Many Agents in our market have gone so far as to use a Buyer Agent Agreement that is Titled “Exclusive Buyer Agency Agreement”. This form was created by the local Board.
This agreement is far from Exclusive. Half way down the agreement page they have inserted what I call a “Switch Clause”. This clause allows the agent to switch you to a Limited / Reduced level of representation. In my market they call it “Limited Consensual Dual Agency”. Let’s break this term down.
Limited . . . this means the agent is limited in giving the buyer full representation. Meaning the agent cannot negotiate for the lowest price for the buyer. The agent cannot share information that could enhance the buyers bargaining position. The agent will not share neighborhood comparables if their company has listings in that neighborhood. I agree that the buyer is definitely limited in having an agent that will look out for them when they agree to this.
Consensual . . . . So the assumption here is; If it is disclosed to the buyer that they will be receiving limited representation, and the buyer consents, then it’s OK for the agent to take the buyer down this path of reduced representation. . . ? ?
Dual Agency . . . . Dual Agency is a situation which the agent attempts to represent both the Buyer and The Seller. Dual Agency is illegal in many states – as it should be, but is allowed in Alabama. As long as the buyer consents to “limited”, reduced representation..
In 2010 , 2011 & 2012 Over 1/3 Of the Buyers in my market received reduced levels of representation. That’s over 2900 Buyers per YEAR !
Sadly, Many buyers, go through the home buying process, unaware that they were not fully represented.
But The GOOD NEWS is:
“A buyer does not have to agree to Reduced or Limited Representation”
We Have A Better Solution . . .
There are a few Realtor companies around the U.S. that has taken Buyer Representation to its highest level by representing “Only Buyers”.
The Buyer’s Advocate Realtors Is Such A Company.
Click the link below to view a True “Exclusive Buyer Agency Agreement”. If you choose our company, this will be the agreement we use. If you are not from our market or if you choose another agency, feel free to use it.
Use Our “Downloadable” (PRO-BUYER) Exclusive Buyer Agency Agreement
By Eric Kruse