Exclusive Buyers Agent
An exclusive buyer’s agent is an agent that represents you exclusively when you purchase. It is impossible for a Realtor® to represent both a buyer and seller exclusively in the same transaction. An exclusive agent has a statutory duty to his client. To truly be a client you need to have a buyer’s agreement or a seller’s agreement with your agent.
Here are some things an exclisve buyer’s agent can do for you that a listing agent cannot.
- Find out and tell you what the last sale price was.
- Find out and tell you what the seller owes on the property.
- Possibly find out if there are or have been other offers on the property.
- Possibly find out if the seller has a “bottom line.”
- As the listing agents questions about urgency of sale and other personal things that the listing agent should not, but may reveal.
- While unethical and illegal for a your agent to directly contact the seller it sometimes does happen in the course of setting up a showing, previewing the property or something else. Sometimes sellers make statements and disclose information to the buyer’s agent that may be to your advantage. Like they have to move by such and such a time. This is also a warning to any sellers who may be reading this. You should never reveal information to an agent who you do not have a buyer or seller agreement with that you would not tell the other party.
- Same point for buyers visiting open houses, having a listing agent show them a house. Never tell them how much you can spend. How much you are prequalified for, for a loan. Refrain from telling them how much you like the house! Realize that anything you sale can and will be used against you and for the seller’s advantage.
Agents are to provide prospective real estate customers or clients an agency brochure at the first substantial communication with that prospective buyer or seller. This can be found at
http://www.irec.idaho.gov/publcs/agency-disclosure-brochure.pdf. You should first save this page and come back but you should get that brochure and read it.
There is some confusion about exclusive agency. There are exclusive agency websites and agents who only act as exclusive buyers or seller agents. They feel that no one else should call themselves an exclusive buyers agent. But they are in error. While an agent cannot act as an exclusive agent for both a buyer and seller in the same transaction, an agent certainly can list homes but be an exclusive buyer’s agent for a home that another agent is listing. The key is honest disclosure and it starts with understanding the agency brochure mentioned above. Many believe to be the most effective buyer’s agent it helps to have experience on the other side too. Your agent can be exclusive to you if they are not in an agency relationship with the other party (buyer or seller) in your transaction.
There is an explanation in the brochure of dual agency. This is when a a buyers agent happens to show you a home that they are listing. You need to understand before that happens. That is why it is the law that Realtors® provide you with this information. In that situation the agent can give neither party’s confidential information to the other.
Just know that a Seller agent is already in contract with the seller. If the seller agent knows you are making a low offer but will pay more they will and should by law tell the seller. The point is don’t tell a seller agent anything! If your buyer agent is going to show you a home they are listing definitely talk about this first and consider a buyer’s agreement. If you don’t want to sign a buyer agreement for all homes maybe you should sign one for this home before you even look at it! Call Jon Gosche at 208-870-2115 to answer questions you may have. Agency is important for you to understand.