Exclusive Buyer’s Agency Vs. Dual Agency
When it comes to purchasing a home, every decision, even if it seems minor, is a big deal. You will be spending a large amount of time and money on this investment, so it is important that you begin on the right path. When a home is a proper financial fit for a buyer, it results in major benefits down the line such as tax breaks and long-term savings. Most aspiring new homeowners will need assistance when they are undergoing this process to ensure that everything runs smoothly. It is important that you seek out an agent who has plenty of expertise and who will not lead you astray. An Exclusive Buyer’s Agent (EBA) is able to focus solely on the buyer and address all of their issues promptly. It is important to note that every buyer’s agent is not an Exclusive Buyer’s Agent, so while they are similar, there is a difference. Buyer’s agents can locate properties that fit your specifications, and schedule showings for you, but they are not bound to just buyers. They can opt to represent sellers as well seeing as is permitted by their agency. An Exclusive Buyer’s Agent can only represent the buyer, so you can have the assurance that they will put you first.
What Does an EBA Do?
Exclusive Buyer’s Agents are at a much higher standard than a typical buyer’s agent. With an EBA you receive a variety of benefits. They will make sure that your budget and wants are kept confidential and they will look out for your needs no matter what. An Exclusive Buyer’s agent will assist you in understanding the market so that you don’t end up paying more money for a home than it is worth and closing on a bad deal. They will compare property prices for you and negotiate dealings on your behalf. With an EBA representing you, you will have an easier time reaching terms that are agreeable for you. These agents also have what are known as fiduciary duties. A “fiduciary” is someone who has the power to act on someone else’s behalf and make decisions for them. Their duties include disclosing all relevant information to their client such as purchase offers, keeping personal information confidential, and not representing the other party in the same sale.
Look Out for Dual Agency Disclosures
If your buyer’s agent provides you with a dual agency disclosure, this means that aren’t truly representing you. An EBA is the only agent who can give you 100% representation and promise to negotiate your interests on your behalf. A dual agent is one who represents and negotiates on behalf of both the buyer and the seller in the same sale. This setup is not very practical for buyers and sellers due to the fact that agents cannot adhere to their fiduciary duties for both parties simultaneously. Not to mention, this setup could lead to a major conflict of interest between agent, buyer, and seller. From a dual agent’s perspective, it makes sense that they would lean toward the seller’s interests since the higher they sell the home for, the more they will receive in commission pay. This means that their client (the buyer) would suffer as a result. Dual agents also cannot assist buyers in deciding the best price to offer on a home because doing so would mean betraying their loyalty to the seller. In short, when you work with an Exclusive Buyer’s Agent, you get what the title entails, exclusivity. You can also receive counseling before closing and referrals to mortgage lenders if needed. However, working with a dual agent means you will have to share their attention with the seller as well. They cannot be exclusive to you and they also cannot negotiate terms on your behalf due to the conflict that comes from representing both sides of a deal. If you are looking for a high-quality home buying process that will help you get the best deal for your money and a significant return on your investment in the long run, then look no further than an Exclusive Buyer’s Agent. They are committed to helping their clients in any way they can, and you don’t need to worry about sharing their services with anyone else or risk them leaning more toward the seller’s needs than your own. If you are searching for an agent, an EBA is the one you need.