In fact, you shouldn't call anyone who advertises
homes for sale! If you are thinking about buying a home, think about this.
The real estate agent whose name is on the "For Sale" sign represents the
seller. Their job is to sell you the
home.
It is the listing agent's job to obtain the best
price, not for you the buyer, but for her client, the seller.
Most people, who call
the real estate agent whose name is on the "For Sale Sign,"assume that the
real estate agent is "their agent," when, in fact, that agent is actually
representing the seller.
A Federal Trade Commission study found that over
72% of the people who purchase property were unaware that the real estate
agent who "helped them purchase their home," really represented the sellers
of the property.
A seller's agent is bound by law, to tell the seller
all he knows about
the buyer and to keep all information about
the seller confidential. Sales people representing the seller are not allowed
tell you what the seller's motivation is, how long a property has been on
the market, or what price the seller might accept. This information is
confidential between the seller and the seller's agent. When a buyer visits
an "Open House" that seller's agent is trained to ask what a buyer might
think are innocent questions. Such as:
-
"How soon do you plan on moving?"
-
"Do you have a contract on your house?"
-
"Can I help you get your present house sold, so
that you can enjoy this one?"
-
"Our company can help you with any special financing.
How much do you think you will need?"
On the other hand, any information the buyer may
have told that agent will be passed along to the
seller. After all, that seller's agent is obligated
to obtain the highest price and the best terms for his client!
You be the judge. Can
someone who, by law and contract, is obligated to represent the seller
successfully negotiate the best terms and conditions for a you, the buyer?
Traditional
Agent or
an Exclusive Buyer's
Agent?
The
Seller's Agent or Listing
Agent
The seller's agent, also known as the listing agent,
is the worst type of agent for you to use when buying a home.
They are the best agents for sellers, but you
are not selling! Using a seller's agent to buy
a home eliminates any possibility of having a honest and knowledgeable real
estate agent working to protect your best interest.
All confidential information a buyer discloses to
a seller's agent is, by law, passed on to the seller, thus seriously affecting
your ability to negotiate. Seller's agents are
committed to the seller to get the highest price possible from a buyer.
The
Nebraska Buyer's Agent
In Nebraska, all real estate agents, except the
listing agent and any additional agents designated by the listing broker,
represent the buyer. However, if you agree to be represented by this
type of agent, they normally can not represent you on all homes. You
may very well be asked to sign a "Duel Agency Agreement" which means that
you no longer have an Agent working for you!
If you have interest in any of their listings, they
will ask you to agree to a Dual Agency Agreement.
This means that they are no longer
representing you, but instead are trying to
dance with both you and the seller.
Dual Agency, by law, forbids the agent from getting
involved in any discussion, suggestions or negotiation with regard to price
or terms of the sales contract, for either party. Dual agents may try to
convince a buyer that the service being offered is equal to that of an Exclusive
Buyer's Agent. The simple truth is, it
is not.
Using a dual agent creates the possibility similar
to that of having one's lawyer representing both sides of of a legal dispute.
Would you use the same attorney as your adversary in a legal confrontation?
Of course you wouldn't, but this exactly what you do when purchasing a home
through a seller's agent! It is impossible to
have anyone's best interest represented when the buyer and the seller are
working with the same real estate agent.
The more successful the agent is, the more listings
they have. The more listings they have the less likelihood of a buyer getting
the representation they deserve. Dual
Agency is really no Agency.
Let's consider the case of your interest in one
of their listings. After you express an interest in one of their listings,
how hard are they going to work to find you a different and superior home?
The
Exclusive Buyer's Agent
Using an Exclusive Buyer's Agent is 1990's way to
purchase a home. It is the only sensible way to shop for a home. You get
an agent that never takes listings, and will, therefore, never have a desire
to steer you towards in-house listings.
The Exclusive Buyer's Agent always, 100% of the
time, has only the buyers concern at hand, never the seller's. The Exclusive
Buyer's Agent represents the best interest of the home buyer and becomes
the buyer's personal advisor, consultant and negotiator at all times during
the house hunt and purchase.
There is no additional cost to the buyer for this
service when purchasing a home. All fees can be, and usually are, paid
by the seller.
To put it simply, an Exclusive Buyer's Agent works
only with buyers. The Exclusive Buyer's Agent works for a company that does
not take listings. They have no reason not to show you the very best values
in housing, instead of steering you to in-house listings, to their fellow
agent's listings, etc. Exclusive Buyer's Agents work exclusively for the
buyer, 100% of the
time....