1. About Exclusive Buyer’s Agency
   

2. 

   FAQ
   
3. 

   Your Next Home
   
4. 

   About Dual Agency
   
5. 

   Get your own Agent
   
6. 

   
   

7. Glossary (soon)
   

8. 

   Buying Property Worldwide
   

FAQ

(frequently asked questions about Exclusive Buyer Representation)

What is an Exclusive Buyers’ Brokerage?

An Exclusive Buyers’ Brokerage is a real estate company that only works with Buyers. The Brokerage provides no Agency for Sellers. We work for the best interests of Buyers, with no compromise, no conflict of interest, and with 100% loyalty to Buyers, 100% of the time.

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What’s an EBA?

EBA is a common abbreviation for Exclusive Buyer’s Agent. We are a member of NAEBA, the National Association of Exclusive Buyer’s Agents.

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Who Pays?

Usually, not the Buyer. In a typical MLS transaction, the Seller pays the Seller’s Broker, and then the Seller’s Broker offers to pay a portion of that commission to the cooperating Broker (that’s me), the Broker who brings the Buyer. So the Buyer usually can get the complete loyalty and expertise of an EBA paid for by the Seller. The fact that the commission paid to the Buyer’s agent comes from the Seller does not create any agency relationship between the Buyer’s agent and the Seller. We are agents of Buyers, and only Buyers.

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.

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Won’t I save on commissions if I go directly to the Listing Agent?

It might be suggested that you can save money by allowing the Listing Agent to “double-end” the deal, but there are a few important things to consider.

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.

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.

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What is Dual Agency and why should I avoid it?

Dual Agency is such an important concept to understand– and to avoid– that it is worthy of its own page. In a nutshell, Dual Agency is when either one agent or two agents in the same brokerage attempt to represent both sides of a real estate transaction. Both Buyer and Seller receive an overtly diminished level of service while each thinks he or she is saving money. Only the Agent benefits for certain. Read more here.

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What if I want to sell my house?

We have listed and marketed property in the past, before opening the Santa Cruz Buyers’ Brokerage. We don’t do it any more, but we know how it’s done and how it can be done well. There are some exceptional listing agents in the area, and we can refer you to an expert fitting to you and your situation. We don’t accept referral fees on properties where we represent the Buyer, but we can help you find someone to do the job right.

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.

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The local “full service” real estate company has a “Buyer’s Agent”. Is that the same thing?

Not at all. If the Brokerage or company offers real estate for sale in any way, then they are not an Exclusive Buyer’s Brokerage and can not act as Exclusive Buyer’s Agents.   

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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What about....?

We are always working on improving this web site, including this FAQ. If you have a question that you would like answered, please don’t hesitate to call or write.

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