Just as traditional agents work for the seller, the BUYER'S ADVOCATE AGENT only works for the buyer and is obligated, according to A Realtors' Guide to Compliance with the Law of Agency, to reveal to the buyer: "the willingness of the seller to accept a lower price, any facts relating to the seller's need to dispose of the property, facts affecting the value of the property, and any information that would affect the buyer's ability to obtain the property at the lowest price and on the most favorable terms."

Although BUYER'S ADVOCATE is the premier company that represents the buyer, other companies might attempt to represent the buyer from time to time. Many traditional companies, in the past, have avoided buyer representation since their legal accountability is usually to the seller. Representing the buyer can create a conflict of interest if they are legally accountable to the seller.

Exclusive Buyer Representation

In 1983, a Federal Trade Commission study revealed that over 72% of all home buyers nationwide mistakenly believed they were being represented by the agent who was showing them homes. As a result, laws requiring agents to disclose exactly who they represent have been passed all over the country. When consumers became aware that most agents work for the seller, they began demanding their own representation. In response, BUYER'S ADVOCATE began offering exclusive buyer representation to home buyers.

While exclusive buyer's agencies in other areas of the country use an a la carte menu or require you to sign a contract with them, we don't. We never accept a fee from our buyers. We are paid in the same way any other real estate agents is paid: the typical commission paid by the seller at closing is divided between the listing broker and the buyer's broker.

Agents who list properties enter into a signed contract with sellers to represent them in the sale of their property. In other words, they have a signed contract to get the best price in favor of the seller. The problem is, if you have gone to the listing agent to buy that property, the listing agent obviously must show loyalty to the seller in negotiating the deal.

We do not use contracts at Buyer's Advocate. State law says we must provide a copy of our office policy, which we do, if we do not use contracts. Our office policy clearly states that we will never accept a fee from the buyer and that we work only on your behalf. It's as simple as that.

If you had to go to court, would you use the same attorney the opposing side was using? Responsibility and accountability to a client are two legal requirements of agency representation. By law, real estate licensees who act as seller's agents must negotiate in the best interests of their clients (the sellers), not withhold information from them, and must present their property only in a favorable manner. Exclusive buyer's agents negotiate in the best interest of the buyer, do not disclose confidential information about the buyer, and reveal all facts affecting the value of properties to the buyer.

Of course agents try to be fair and nice to the buyer since they want to make a sale. But, because they are bound by Real Estate License Laws, the Law of Agency, and their Code of Ethics, they can only do so much without jeopardizing their license to practice. For instance, traditional agents cannot tell you if a property is over-priced or how to negotiate the best purchase price. In this case, "technically" means legally, and if the seller has representation, shouldn't you? As THE BUYER'S AGENT, we always negotiate ONLY in the best interest of the buyer.