What is Exclusive Buyers' Brokerage?
What is an EBA?
Occasionally the Buyer may elect to pay the commission of the Buyer’s Agent directly. For instance, sometimes we help Buyers go after Pre-Foreclosure properties, FSBO (for sale by owner) properties, or properties that are not for sale at all. In these cases Buyers often do not want the potential Seller to have to consider commission in the sale cost, so the Buyer will contract to pay the Broker directly.
Won't I save money by going to the listing agent?
First of all, Sellers think that they are going to keep the money from any reduction in Commission. And they should, because they are giving up the complete fiduciary loyalty of their Agent. A Buyer also gives up the complete loyalty of their Agent when involved with Dual Agency. With so much at stake, it’s just not worth it.
Remember that before you even walk in the door or pick up the phone, the listing agent has a contract saying that he or she is going to represent the best interests of the seller, which means selling for the highest possible price in the shortest possible time and with the least amount of hassle. So, is this the person who you want to coordinate your investigations of the property and help you determine the fair market value?
There is one person who benefits from double-ending. The Listing Agent is actually walking away with more commission, not less, and this for providing a limited level of service to both Buyer and Seller. Read this article for more.
What is Dual-Agency and why should I avoid it?
What if I want to sell my house?
Sometimes it might be appropriate to sell your property yourself, but successfully marketing a property and completing a sale is a difficult operation and requires some serious expertise to be done effectively and within the bounds of the law. Knowledgeable FSBO Sellers are aware of the benefit when a Buyer uses a Buyer’s Agent, because they know that the Buyer’s agent will help the transaction go smoothly and will request the proper disclosures and documents required by law, protecting both Buyer and Seller. If a FSBO seller wants to avoid Agents, the intelligent Buyer will consider the potential reasons for this and think very carefully before proceeding with that Seller.
Whether you are planning to buy or sell a FSBO property, read this page.
The local full-service company has a "Buyer's Agent". Is that the same thing?
Remember that the Salesperson is an agent of the Broker, and the Broker is the agent of the Client, whether Buyer or Seller. So when two “Agents” (salespersons) working for the same Broker represent each side of a transaction, in reality the Broker is the Dual Agent of both the Buyer and the Seller. In this case neither agent (salesperson) is allowed to give full undivided loyalty to the client. Both agents are compromised.
In a company that takes listings, in-house “Buyers Agents” or “Designated Buyers Agents” act to bring more proceeds to the Brokerage by offering a perceived separation between the Agents. In reality, it’s just Dual Agency, with its incumbent limitations in fiduciary duty, and by law you’ll be presented with a form stating exactly that.
Since an Exclusive Buyer’s Brokerage doesn’t list property, there is no chance of a conflict of interest where the Brokerage stands to make commissions on both ends of the deal. With a traditional Brokerage, the more listings the company has, the higher the chance of a conflict of interest where the Buyer is looking at a house listed by the Broker. With such large sums of money involved, there is great value in the peace of mind provided by Exclusive Buyer’s Agency.
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Santa Cruz Buyers’ Brokerage (831) GET-HOME