Real Estate Agent or Buyer's Agent?

David · Joined: 19 May 2004 Posts: 754 Location: Atlanta, GA

According to a National Association of Realtors survey, 90% of buyers use a real estate agent, and the agent is working on behalf of the seller to get the highest price possible. Somehow it doesn't seem like such a person would be on your side when it comes to the numbers.

On the other hand, a buyer's agent works on behalf of the buyer. They may be paid by commision, hourly rate, or flat fee. In theory, it seems a buyer's agent may be the best bet, but this can be misleading, because often they are employed by the same firms as the listing agents, meaning their loyalties to the buyer may not be as high as one might hope.

The best way to find a true buyer's agent (who does not work for a company that also sells houses) is through the National Association of Exclusive Buyer's Agents.

What are your thoughts on using a true buyer's agent versus a real estate agent?

chow · Posted: Tue Apr 05, 2005 10:56 am Post subject:

About the only time I get nervous is when the same agent is on both sides of the sale, and the home has issues, or they hound the LO for information and want to control the whole deal because they know they have ignorant buyers.

capnmorgan5555 · Joined: 29 Jan 2005 Posts: 29

David,

The way I understand the Buyer's agent (BA) relationship- it is to your advantage to have a Buyer's agent IF you have good rapport with him/her, you trust them and THEY KNOW WHAT THEY ARE DOING.

The BA has a fiduciary responsibility to the client, unless they client is buying one of the BA's listings- then that fiduciary responsibility goes back to the seller.

Here is an example of how a BA can be of benefit to you. The BA works for Realty Execs and Sally Smith is blabbing around the office that she has a listing that really needs to sell, her seller lost his job and they are about to lose the house. (Obviously a situation where you could get a deal). Since the BA is an agent for Realty Execs if you DON'T have a buyers agency agreement signed with them they CAN'T tell you about that information- their fiduciary responsibility falls to the seller because the listing agent is with the BA's brokerage and you don't have an agreement with the BA. Basically, any inside info that the BA comes up with they can't tell you about it unless they have a BA agreement with you.

If you do sign with a BA make sure you get it in writing how things will be handled if you end up finding and buying a FSBO. Don't accept any verbal agreements get it in WRITING. All in all, if you find a true RE Pro you can't go wrong with a BA. Just always give yourself an out IN WRITING in case you find a flake that you thought was a pro. If you can't get out of it, go to the broker and explain how you have been wronged and that your next stop is the paper and the local news channel that would love to do an expose' on the mean old Realtor.

I hope this helps.