Where is the conflict between "Exclusive Buyer Agent (EBA)" vs. "Buyer Agent?"

From a legal and ethical standpoint, there are no hurdles preventing Brokers from steering any given buyer into purchasing a home from within their own inventory of homes.  Brokers who represent both buyers and sellers have a vested interest in making that happen.  Brokers who successfully coerce buyers into purchasing a home from within their own inventory typically stand to earn twice the commission upon the sale!  It's a classic case of double-dipping at the expense of the uneducated buyer.

 

What does fiduciary responsibility mean?

A fiduciary responsibility is defined as: "owing an obligation to carry out the responsibilities with the utmost degree of good faith, honesty, integrity, loyalty and undivided service of the beneficiaries’ interest."  Other real estate Brokers who take listings (or sell properties) cannot legally make this claim.  Those Brokers owe a fiduciary responsibility to the party who pays their commission for the sale of any property, and that party is typically the seller - which only serves to expose the buyer to potential conflicts.

 

How will you negotiate on my behalf?
The negotiation phase of the deal can be both tedious and frustrating for all parties involved.  While your EBA's primary responsibility is to protect your best interests in this process, a good agent knows they simply can't afford to become emotionally involved.  Your EBA understands you're putting your hard earned money on the line and that you want to get the best deal you can, but you should understand your EBA is a professional who's been trained to prevent his/her own personal feelings from clouding their better judgment.  At this point in the process, you'll need to trust your Agent's integrity, strength, insight and -- most importantly -- experience, to help you make the right final decisions.

 

What can be negotiated?
A good EBA operates on the philosophy that everything in real estate is negotiable. That would include the asking price of the home, the terms and conditions of the offer, contract clauses, disclaimers, exclusions, and contract dates.  Remember: An Exclusive Buyer's Agent is your ally and advocate in the home buying process.  You have every reason to expect them to negotiate a deal on your behalf as if they were purchasing the property for themselves. 
This is the is the "make it or brake it" phase of the process -- and your EBA is the expert in your corner.   

 

How can you save me money?
By helping you negotiate the best price upon offer including terms and conditions of the offer, contracts clauses, and contract dates.  We can aide you in the renegotiations after the home inspection.  We can ensure that your offer reflects the current condition of the property.  

 

Advantage and disadvantages of buyer/sellers market?  
The state of the market, whether it be a sellers market or buyers market, can affect your negotiations dramatically.  When there are rising prices, fewer homes and multiple offers competing against yours, you have much less of a chance of negotiating a bargain.  You may end up in a bidding war when the market is hot and it may even be necessary for you to be "likeable" to the sellers when they must choose from among several offers on the table.  On the other hand, when it is a buyers market, sellers are forced to be more accommodating and you stand a better chance of striking your best deal.

 

What do you mean by client vs. customer? 
At Total Real Estate, we treat you as our client. You the client have selected us to work on your behalf. In most real estate transactions involving only one realtor, the seller is served as the Broker's client (note: I did not say the listing agent’s client)which leaves you, the buyer, to be represented as nothing more than a customer in the transaction.  While the seller may pays the commission to the Broker upon thesale of their home, the buyer pays the ultimate price by failing to have their best interests represented and protected during the entire transaction within that scenario.

 

Where is the conflict between "Exclusive Buyer Agent" vs. "Buyer Agent?" 
From a legal and ethical standpoint, there are no hurdles preventing Brokers fromsteering any given buyer into purchasing a home from within their own inventory of homes.  And Brokers who represent both buyers and sellers have a vested interest in making that happen.  Brokers who successfully coerce buyers into purchasing a home from within their own inventory typically stand to earn twice the commission upon the sale!  It's a classic case of double-dipping, furnished at the expense of theuneducated buyer.

 

Why does dual agency and designated agency exist?
They exist to keep the status quo for the outdated business practices of real estate firms in order to exist.  This enables a real estate firm to take work for sellers and buyers at the same time.  We feel this should be handled by two different firms, that is you either work for sellers or you work for buyers.  

 

Who pays the commission?  How does that work?
Our commission is paid by you as part of the transaction fee in buying the property.  As the buyer all the money that is brought to the transaction is from you.  The majority of that of course is your mortgage amount.  There is no out of pocket expense.

  

When is the best time to buy a home?
The best time of the year to buy a house is when the season slows down and there are fewer home buyers in the market – Thanksgiving to mid-January. Homes listed and available during the slow season are from serious home sellers. Most people don't want to move until the summer months so they don't start actively looking until early spring.

 

Is a home inspection worth the money?
Yes…. 
Home Inspectors will tell you all houses, including brand new homes, have defects; some of which are incurable.  Some defects will be obvious to you, such as peeling paint or broken windows; others will call for the education and skill of a good home inspector and/or other professionals to test for the presence of pests, radon, or lead paint. 
A thorough home inspection will help you determine if the home is in the condition represented by the seller and your EBA will be ready to renegotiate should repairs be needed, or to request a credit to cover certain repairs.

 

Should I go to Open Houses?
Absolutely!  However you should always identify yourself as a client of Total Real Estate.  

 

What can I afford?

You can afford the combination of the amount of cash you have available plus what you can qualify for a mortgage.  The mortgage becomes the loan and the money your bank provides for the transaction.  

 

Are there any hidden costs - what monies will I have to pay out of pocket? 
In a real estate transaction most costs you should know well in advance through the use of a closing statement provided by the bank.  However, you should be prepared to pay out of pocket for the mortgage application fee, home inspection, attorney fees, home insurance, moving costs and a locksmith.  

 

What is the first step I need to take?
Call us, meet us, agree to work together as our client, get pre-approved at a bank of your choice, then you’ll be buying your house soon and moving in!