Buyer Agency Explained
Do you know who will represent your best interests as a first-time home buyer? The answer may surprise you.
A lot of first-time home buyers assume that all agents are the same. But that’s simply not the case.
For instance, if you’re navigating the market alone and you find a home you like, you may be tempted to talk with the listing agent to purchase it. But that agent has loyalty to the seller, and so you might not get the best deal you can on the property.
This is where buyer agency comes in.
Buyer agency is a principal-agent relationship in which the broker is tied to the buyer and is responsible for maintaining his or her loyalties to the buyer.
Thus, there is a key difference between a seller’s agent and a buyer’s agent. And there are even such a things as a dual agent and a designated agent.
A seller’s agent is responsible for obtaining the best deal for the seller. The agent is only allowed to give material facts about the property to buyers.
Meanwhile, a buyer’s agent is responsible for getting the best deal for the buyer. They can pass on any and all information they get about the seller or the property to the buyer.
A dual agent is one who has to be loyal to both parties. This most often happens when a real estate agency owns a listing and then an agent from the office (who is working as a buyer’s agent) shows that listing.
Finally, a designated agent is one where the broker-in-charge designates two agents to complete a transaction, one on the buyer side and the other on the seller side.
An Even More Specific Breakdown of Buyer Agents
Did you know that there are two different definitions for buyer agents in the real estate world?
For instance, the National Association of Exclusive Buyer Agents believe that buyer agents should represent only buyers. Thus, they never handle listings, not even for their own home.
There’s another school of thought from the Real Estate Buyers Agent Council where the guidelines are more lax. Agents may choose to exclusively represent buyers or they may represent both buyers and sellers. This group awards two designations to members: the ABR (Accredited Buyer Representative) and the ABRM (Accredited Buyer Representative Manager), which is more advanced.
Representing Your Needs as a Raleigh Area Home Buyer
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