And Not All BUYER AGENTS are Created Equal.
NOT knowing the Difference can be Costly!
In the past few years, many real estate agents in New Hampshire have been advertising themselves as a “buyer agent,” “buyer’s rep,” “buyer specialist”, “buyer’s broker”, “exclusive buyer broker” or “exclusive buyer agent.”
What is dual agency?
With dual agency, the buyer agrees at the outset of the relationship to allow their “buyer’s agent” to stop representing the buyer’s best interests if the buyer wishes to purchase ANY home listed by the “buyer agent’s” COMPANY. When the buyer wants to purchase a home listed by the “buyer agent’s” COMPANY, the “buyer’s agent” then becomes a DUAL AGENT, “representing” both the Buyer and the Seller in the same transaction. When this occurs, both the Buyer and the Seller are entitled to limited services and they both lose the right to undivided loyalty, advice and advocacy.
Why is dual agency a disservice to buyers?
What makes Dual agency most troublesome is that you–as a buyer-can never judge how likely it is that the home you may want to buy may be listed, or later become listed, by the COMPANY that is acting as your buyer’s agent resulting in you giving up your right to undivided loyalty, advice and advocacy.
Think about it. How can two agents WITHIN THE SAME COMPANY—fully represent the interests of two OPPOSING parties at the same time? THEY CAN’T!!!
These and other conflicts can strip you of the 3 most important reasons for having a buyer’s agent in the first place…undivided loyalty, advice and advocacy.
There is only one type of agent who can GUARANTEE he/she can represent only the BUYER throughout the entire real estate transaction. These are agents who work in COMPANIES that NEVER represent SELLERS so there is no possibility of being drawn into a situation where the agent changes from being your Buyer’s agent to a DUAL AGENT.
If you ask the vast majority of “buyer agents” the question: “Does your firm have real estate listings and do you ever practice DUAL AGENCY? You would most likely get: “Yes, but…”
As long as the choice comes down to true buyer agents, your decision as to whom you want to work with is a matter of personal comfort level and confidence. Do be careful of “buyer agents” in name only. The ABR (The National Association of Realtors, “Accredited Buyer Representative”) designation does not require agents to represent buyers exclusively. Less than 1% of agencies nationally practice only Buyer Representation. BUYER’S OPTION REALTY is part of that less than 1%.
Hidden Costs of Dual Agency
- You lose the right to have an advocate on your side who will fight for your interests throughout the home buying process.
- You lose your right to have an agent give you the information necessary to establish a range of value for the property.
- You lose the right to have an agent provide you with information about the property such as:
- Whether the property has been listed before
- When the property was first listed
- Whether there has been a price change
- The motive for the seller in selling (if known to the agent)
- You lose the right to have a purchase and sales agreement which is more “buyer friendly”.
- You lose the right to have an agent that will tell you both the good and bad about a property.
- You lose the right to have an agent assist in formulating a good offering/negotiating strategy.
- You lose the right to have your agent present the offer in the best light to the seller and the seller’s agent and to negotiate on your behalf.
If you have any questions about dual agency and exclusive buyer agency contact us via email or give us a call at (603) 881-3800.