What Most Real Estate Agents
Won't Tell You
Companies listing homes for sale are sellers' agents and by law represent and work for the interests of homesellers. Their exclusive right-to-sell property listing agreement establishes this agency relationship. Sellers' agents are legally obligated to negotiate for the highest possible price at the best possible terms. Sellers' agents are required to disclose anything they know about the buyer's financial and personal criteria and level of motivation to the seller.
Practically every listing company nowadays offers buyer agency. Agents from listing companies claiming to be so-called buyer agents are Non-Exclusive buyer agents, and as such, cannot guarantee loyalty to homebuyers. Dual agency conflicts can easily occur when a buyer becomes interested in purchasing a home listed by that buyer agent's company, since the firm already represents the interests of the homeseller.
The use of an "Exclusive Right-to-Represent Buyer's Agency Agreement" by Non-Exclusive buyer agents benefits the real estate brokerage, not the homebuyer. This contract locks a homebuyer into using only that real estate company for any home purchase, including their own company listings. This allows the company to become a dual agent, or no representation at all if the seller rejects dual agency, relegating the buyer to unrepresented "customer" status acting on their own, while the seller remains a represented Client. As you can see, the term "exclusive" has various meanings in real estate, all of which are typically misunderstood by the public. The use of an Exclusive Buyer Agency Agreement does not turn a Non-Exclusive buyer agent into a true Exclusive Buyer's Agent.
Dual agency financially benefits the interests of the listing company with a double commission and transactional control, while compromising the interests of homebuyers with limited, unbalanced, or even no representation. Unbalanced representation can result if you agree to dual agency with designated sales associates. Be especially wary of this form of dual agency.
A true Agent places the interests and goals of the Client (also known as a "Principal") before that of the Agent's and anyone else in the transaction at all times. "Agent" refers to the entire company, not an individual sales associate from the company.
The New York State Department of State Counsel's Office says that homebuyers have the right to refuse dual agency, and can choose a real estate broker/agent (company) which represents their own interests with undivided loyalty. The U.S. Department of Housing and Urban Development (HUD) recommends homebuyers use the services of an Exclusive Buyer's Agent.
Only an Exclusive Buyer's Agent-a real estate company which represents the sole interests of homebuyers and does not list property for sale-provides homebuyers with undivided company loyalty at all times on any property without conflict of interest or reduction of fiduciary duties.
Buyer's Edge Realty is Westchester's premier Exclusive Buyer's Broker company whose Exclusive Buyers' Agents solely represent and protect the interests of homebuyers.
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