Why should a buyer always consider contracting an Exclusive Buyer Brokerage agent?

Most buyers do not realize that without an Exclusive Buyer Brokerage Agent contracted via an Exclusive Buyer's Broker Agreement to protect them then they are usually working with the seller’s broker.  How does this happen?  Usually, a buyer calls a brokerage office in reference to a property.  The information of the selling brokerage firm was acquired through a posted sign, from the MLS listing or from a newspaper announcement.  The broker (the seller’s representative) will give you information about the property and will show you the property.  If you decide to purchase and you disclose your financial situation during conversations or you disclose how much you are willing to pay then the seller’s broker will pass that information to the seller.  You may give this information inadvertly even as you negotiate for a better price.  This will put you at a disadvantage and will cost you money. 

In addition, there are other cost saving negotiations or important agreements or contract addendums or contingencies that the seller’s broker may not mention or suggest to you (the buyer) because they are legally bound to represent the seller and must look after the seller's best interest.  In all fairness the buyer should contract a broker to represent their interests. 

The Exclusive Buyer's Broker Agreement assures the buyer that he is contracting with a broker that is going to be loyal and will look after his/her best interest.  There is no cost to you for having a Buyer’s agreement.  At the time the seller signed the exclusive seller listing agreement the seller agreed to pay a commission.  This commission is split between the listing agent and the selling agent.  The only time you could be obliged to pay the commission (and this is not true on all cases) is for a ‘For Sale By Owner’ (FSBO) property, were the owner of the property is not willing to pay the commission.  Your agent would know the situation before showing you the property and would pass this information to you.  If you decide to purchase the property, then you would be responsible for the commission.  Fortunately, this rarely happens and usually the FSBO property owner will agree to pay the Buyer’s agent a customer procurement commission.  As for new home subdivisions, the same holds true as in FSBO and the developer will pay the Buyer’s Agent commission.  Please call or email us at Office Manager, Broker if you have any additional questions about this service.