buyer's agent? (RE agent, contract, Realtors, agreement)

[marmac]

Could someone explain to me exactly what a buyers' agent is?
I will be buying a house (soon hopefully) and still am confused what a buyer' agent is.

Awhile back I recieved info from a realtor stating she welcomed the opportunity to be my buyers agent--------yet she is listed as a realtor who sold property and had property listed with her name on in the brochure.

To me that would be like a car salesman from Wilson Pontiac stating they would like to be my buyers agent and yet their office is located in Wilson Pontiac bldg and they draw their paycheck selling cars for Wilson Pontiac.

Anyone want to clarify? Is there such thing as a buyers agent who is not affiliated with a company selling real estate and doesn't sell real estate themselves?

[MikiJayne]

In my area, all Realtors can help you buy or sell your home. I don't know of any areas that are different. When they are representing you, they are acting as your agent, whether you are a buyer or seller.

The trick is when they are representing both sides at the same time on the same house, there are special rules for this circumstance.

[kensgirl]

The phrase "Buyer's Agent" tends to have many meanings, depending on where you live. In my state, for me to be a Buyer's Agent, I need to have a written agreement with the Buyer, stating that I am acting on their behalf only. In turn, the buyer agrees to only work with me for the time period set in the agreement.
I have met many realtors in this area who only work for buyers - they do not take listings. However, for the majority of real estate professionals, they work either for the seller or the buyer.

[olecapt]

Originally Posted by marmac

Could someone explain to me exactly what a buyers' agent is?
I will be buying a house (soon hopefully) and still am confused what a buyer' agent is.

Awhile back I recieved info from a realtor stating she welcomed the opportunity to be my buyers agent--------yet she is listed as a realtor who sold property and had property listed with her name on in the brochure.

To me that would be like a car salesman from Wilson Pontiac stating they would like to be my buyers agent and yet their office is located in Wilson Pontiac bldg and they draw their paycheck selling cars for Wilson Pontiac.

Anyone want to clarify? Is there such thing as a buyers agent who is not affiliated with a company selling real estate and doesn't sell real estate themselves?

Buyers Agent can mean a lot of differing things depending on the context.

At its simplest it means an agent representing a buyer. This is as opposed to an agent representing the seller or both the buyer and the seller.

It can be an agent who will represent buyers or sellers but only one side in a given transaction.

It can be an agent who represents only buyers. May work for a Broker who takes listings but the Agent does not.

It can be an agent who represents only buyers and works in a brokerage that represents only buyers.

There are probably local variants of some of these.

All are not present in all states.

Dedicated buyer brokerages do not appear to have been very successful though there are some exceptions.

[Silverfall]

To me that would be like a car salesman from Wilson Pontiac stating they would like to be my buyers agent and yet their office is located in Wilson Pontiac bldg and they draw their paycheck selling cars for Wilson Pontiac.

This scenario is more akin to dual agency, where ONE agent represents the buyer and seller.

You should think of buyer agents and listings agents in an attorney-esque situation. Say for example you are a corporation and you have attorney John Doe on retainer for your company. You get sued so you are the defendant and he represents you. The next time, you sue someone, you are the plaintiff and he still represents you. The attorney doesn't represent both sides at the same time, but can represent you as the plaintiff or the defendant.

A buyer agent is one whose loyalty and fiduciary duty lies with the buyer only. Yes there are agents that only represent buyers and NEVER list or sell a home. They are called Exclusive Buyer Agents. The NAEBA has a list I think.

I don't practice dual agency, but I can say that representing both buyers and sellers (not in the same transaction) has made me a much better agent. I feel that I am better able to explain to sellers, why buyers do what they do, as well as prepare buyers for what to expect from sellers.

If you want to go with an EBA you can, but I think it is more important to pick a real estate agent that you trust. You may just ask them to not act as a dual agent. Out here in Oregon, you can't act as a dual agent unless both parties consent. You don't have to consent. That way you know they are representing ONLY you.

Hope this helps!

[PghREA]

To put it in very elementary terms: By definition of the word "agent" - an agent must work for someone. The listing agent works for the seller, the contract is the listing agreement. The buyer's agent works for the buyer, the contract is a buyer's agency agreement. If you are a buyer and you DO NOT sign a buyer's agency agreement with the agent who is helping you, that agent is a sub-agent of the seller (working for the seller.)

It is in your best interest to sign a buyer's agency agreement and have that agent working for you.

[olecapt]

Originally Posted by PghREA

To put it in very elementary terms: By definition of the word "agent" - an agent must work for someone. The listing agent works for the seller, the contract is the listing agreement. The buyer's agent works for the buyer, the contract is a buyer's agency agreement. If you are a buyer and you DO NOT sign a buyer's agency agreement with the agent who is helping you, that agent is a sub-agent of the seller (working for the seller.)

It is in your best interest to sign a buyer's agency agreement and have that agent working for you.

No...that is not true. Buyer Broker Agreements need not be signed to have a client relationship with a buyer. It may be customary or required by law in some states but not in others.


Buyers Broker Agreements mostly favor the Agent and do little good for the client. You sign one because you are required to in some states. Otherwise why?

[PghREA]

[quote=olecapt;2928412]No...that is not true. Buyer Broker Agreements need not be signed to have a client relationship with a buyer. It may be customary or required by law in some states but not in others.

In Nevada!

[olecapt]

[quote=PghREA;2931288]

Originally Posted by olecapt

No...that is not true. Buyer Broker Agreements need not be signed to have a client relationship with a buyer. It may be customary or required by law in some states but not in others.

In Nevada!

Nonsense yet again. Both CA and AZ do not require a buyers broker agreement. Here is a little quote from a Century 21 Agent in Phoenix...

"Buyer Broker Agreement
Many agents require their buyer clients to sign this form. It locks you into using their services. We prefer to provide great customer service so our clients WANT to work with us. A form is not the right way to build customer loyalty. "

CA uses three version of the form including one that has no compensation clause. The CA forms can be cancelled in writing at any time by either party and may be limited in multiple ways.

How about yours? Cancel on demand? No compensation clause? Negotiable on whether or not to include a compensation clause?

Get over it. The BBA is a tool of the RE Agent that benefits him. It has more risk than reward for the client. That is why agents like it being required by law...

[gbone]

Originally Posted by olecapt

No...that is not true. Buyer Broker Agreements need not be signed to have a client relationship with a buyer. It may be customary or required by law in some states but not in others.


Buyers Broker Agreements mostly favor the Agent and do little good for the client. You sign one because you are required to in some states. Otherwise why?

Olecapt, the Buyers Broker Agreement that I use with my clients in Tennessee benefits and protects both the buyer and agent equally. This may be State specific but I think it is misleading to say that that the Agreement mostly favors the Agent and why sign one if the state doesn't require it.
I'm a proponent of Buyer Rep Agreements and would use them even if it wasn't state law. I personally think it is good business practice to have the responsibilities and obligations of both parties in writing, especially when we are dealing with business transactions worth thousands of dollars. If I was not a Realtor and buying a house I would want the business relationship in writing.
The OP seems to lack knowledge about what a Buyer Agent does. They may even lack knowledge about their responsibilities and obligations. I would think that spelling out the business relationship in writing would serve the interests of both parties.