Exclusive Representation is the best!   But don't just take our word for it...

According to the National Association of REALTORS®: Realizing that cooperation with other real estate professionals promotes the best interests of those who utilize their services, Realtors® urge exclusive representation of clients; etc... Source:  Code of Ethics and Standards of Practice of the NATIONAL ASSOCIATION OF REALTORS ® Effective January 1, 2008

 

You've just taken the first step in buying smart. There are many good, ethical real estate agents in the Yakima Valley. However, any time an agent or broker tries to represent both the buyer and seller in the same transaction, there is a potential conflict of interest. Think about it... it's impossible for the agent to help the buyer get the lowest price, and the seller get the highest price - it just can't be done!

 

No Dual-Agency     No Conflict of Interest     No Confussion

 

We've given up sellers
to serve our buyers better.

FREQUENTLY ASKED QUESTIONS?

Q. How can The Buyer's Agent - Buyer's First Realty claim to be different and save homebuyers money?

A. We are different! Traditional agents can spend 50%-75% of their time trying to get listings and representing sellers. We never work for sellers, so we can focus all of our time and efforts helping homebuyers find the best home and save money (7 different ways)! We also sign a "pledge of loyalty" which guarantees we will ALWAYS BE ON YOUR SIDE.

 

Q. Can I get a "better deal" if I buy directly from the agent who listed the home?

A. NO! The listing agent owes their loyalty to the seller and is obligated to get the HIGHEST PRICE for the seller.  However, if the same agent showed you a property from a competing firm, they "could be your buyer's agent".  The challenge that faces a buyer working with a traditional agent is that they never really know who that agent (and broker) is legally representing until they identify a property.  If that property is listed with that agent, or even another agent within the firm, you will be exposed to Dual-Agency (less-than-full representation).

 

Q. I spoke with another agent, and they said they could be a buyer's agent. Were they correct?

A. Sometimes! There are basically 4 types of agents: buyer's agents, seller's agents, designated buyer or seller agents and dual agents. Unfortunately, you never know what type of agent you're working with until you identify a home. If that home is listed with the agent or the agents company, you will be losing out on the FULL BENEFITS of exclusive buyer representation and they cannot fully represent you or help you negotiate a lower price! Sorry - it's the law.

 

Q.What's this I've been hearing about buyers' agents and sellers' agents?

A.In 1983, a Federal Trade Commission study revealed that over 72% of all home buyers nationwide mistakenly believed they were being represented by the agent who was showing them homes. As a result, most states have passed laws requiring agents to disclose whom they represent. Unfortunately, when you spend time with a friendly agent looking at homes, you forget what they told you weeks earlier, and you "feel" like they will look out for your best interest. You never really know who that agency is working for until you find a home.

 

Q. Who is ultimately responsible if something should go wrong during the transaction?

A. Remember, every agent is working as an "extension of their BROKER". In fact, it is illegal for an agent to act independent of their broker. If you experience a problem and want someone to take your side, and the seller is represented by the same broker, then you a have a problem. They can take no action which is ADVERSE to either the buyer or the seller. In other words, you would have given up your rights by signing a "consent to dual-agency form".

 

Q. Are there additional fees for your services?  How do you get paid?

A. There are a number of ways buyer's agents can be paid, in general the best way is to have us paid right out of the seller's proceeds just like a traditional real estate agent. This way you can have the services of a buyers agent and not pay any more than if you had used a traditional agent. (Often you would pay much less because we are negotiating for you.) There are other ways we can be paid, which you can discuss with the agent during your first meeting.

 

Q. What areas do you service?

A. From Toppenish to Selah, from West Valley to East Valley. If you are interested in other areas give us a call and we can usually direct you to the best buyer's agents in any given area.

 

Q. What is the next step?

A. Call us to arrange a no obligation meeting to discuss your needs and how we can help you achieve your home purchase goals. Call (509) 575-1212, if no one is at the office when you call, leave a message with times that would be convenient for you to meet. Our voice mail system usually pages an agent so they can respond to you fairly quickly, even after hours.

 

Q. I am going to sell my home. Do you work with sellers?

A. We offer no services to sellers. What we have is buyers looking for homes. If you are selling a home it is very smart to send our office a description of the home you have to sell. If we have any buyers in the market for that type of home we will call you for a showing appointment. You have no obligation. You sign no listing contract. We bring a well informed, well qualified buyer through your home.

Now, if the buyer is interested in your home we will write a purchase offer for the buyer and present it. That offer may include you paying some closing costs for the buyer and it may not be at your asking price. (Since we work for the buyer we are working to get the home at or below market value.) However, if you don't like the offer you can always counter us at terms that are acceptable to you.

The net result is that we do a lot of business with for-sale-by-owner home sellers and they normally end up saving thousands in commissions and a lot of frustration.

 

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Myths real estate agents are still telling home buyers:

Many real estate agents are honest. Unfortunately, many others are either dishonest or very confused. Here are some actual statements from agents in our market:

1. "We can be your buyers agent." Commonly heard at open houses.

What the agent probably means is "we can be your designated buyer's agent or dual agent". Does the company have homes for sale? If so, you will be losing out on some of the most important benefits of having a buyer's agent. Don't get "suckered" into the bait and switch. Ask for a written guarantee of loyalty, if you don't get one, you may be working with a dual agent or designated agent.

1.  We do everything that The Buyer's Agent does for you."  Often heard when you ask a traditional agent about our company.   

Not likely, but just in case, ask them if they provide:

Written guarantee of loyalty 100% of the time. Never any bait & switch buyer agency, never any dual agent double cross. At THE BUYER'S AGENTsm BUYER'S FIRST REALTY, we will always be on your side.
Written guarantee of savings. At THE BUYER'S AGENTsm BUYER'S FIRST REALTY, we are never sure before hand how much we will save you, but we are committed, in writing, to save you money on your home purchase.
Written guarantee that they work hard to negotiate the lowest possible prices from title companies, home warranty companies, home inspection companies, lenders, or any other service providers. At THE BUYER'S AGENTsm BUYER'S FIRST REALTY we are always looking for ways to save you money and we arrange any bonuses or kickbacks come back to you.
OR, FOR A DIFFERENT TWIST,
Ask them how they saved home buyers money when they were working as a buyer's agent compared to how they cost buyers money when they were showing buyers homes as a seller's agent. If they didn't negotiate hard to get money out of a buyer when they were working for the seller, why would you think they would negotiate hard for you when you are a buyer?

3. "Buyer Agency laws have changed real estate."

There are no "buyer agency laws". The truth is that buyer agency has been around for decades. The "new" law just requires real estate agents to tell home buyers the truth about who they are working for. Real estate companies didn't want you to know.

4. "Real estate agents never receive bonuses or incentives."

The truth is, often seller's will offer a bonus to the selling office. If the real estate agent is a REALTOR, they are required to disclose this to you by the REALTOR code of ethics.

5. "All mortgage companies charge about the same." Commonly heard when a buyer is asking a real estate agent for advice on who to use for a mortgage.

Some naive real estate agents do actually believe this. The truth is that for many types of mortgages rates can vary up over 1/2% between lenders on any given day. On a $100,000 loan this is equal to about $2,000 out of your pocket. Our local lenders also vary by as much as $700 on their "junk" fees. At THE BUYER'S AGENTsm BUYER'S FIRST REALTY , we shop rates for you with as many as 5 different lenders, both local and national. Then you can choose the best loan for your needs at the lowest overall cost. The savings is often in the thousands of dollars!

6. "Even though the property is listed by our office, I'll still be representing you and the other agent will be representing the seller." Heard when a home buyer starts to get concerned about getting the dual agent double cross.

The truth is that in Washington, two agents from the same office cannot represent different sides of a transaction without being designated agents. The company or broker becomes a dual agent and the agents take on the agency role of the company. But, since all agents work "on behalf of their BROKER", neither agent can fully represent their client or help them negotiage a higher or lower price. There is no other choice.

Some agents are still confused by this and some agents would rather lie that tell their buyers and sellers the truth.

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Wondering on if you want to use a Buyers agent to help you buy your next home?

For the past twenty five years or so home buyers have had two kinds of agents  they could use to buy a home, buyers agents or sellers agents. The problem was  that very few home buyers knew that buyers agents were available. Traditional  real estate agents were taught to make the best of this confusion and as a  result most home buyers thought the agent showing them homes represented them.  In fact, the agents were legally obligated to represent the sellers unless there  was a written agreement with the home buyer to represent them.

This confusion about the roles of the real estate agents is one of the major  reasons the public has such a low opinion of the real estate industry. The  Federal Trade Commission did a study of the real estate brokerage industry in  1983 and determined that the vast majority of home buyers thought that the real  estate agent showing them homes worked was working in their best interest. The  vast majority was wrong! The FTC then started putting pressure on the states to  have real estate agents disclose in writing to consumers who they represent.

In the early nineties, most states adopted agency disclosure laws requiring  real estate agents to finally tell consumers the truth about who they were  working for. The National Association of REALTORS had long been against buyer  representation in the market place, but with the requirement that real estate  agent now tell consumers the truth, the handwriting was on the wall. Few buyers  would knowingly want to work with agents that are working for the seller's best  interests.

The real  question for a home buyer is:

Do I want to use a part time buyer agent from a traditional office and expose  myself to the dual agent double cross?(Some  areas of the country refer to this type of agent only as a dual agent or  designated agent.)

or

Do I want to use an exclusive buyer's agent  and get 100% loyalty 100% of the time?

MORE ON  AGENCY - Who represents whom?

Basic definitions:

Client: One operating under the protection of  another.
(There is a client relationship when a seller works with a seller's  agent or when a buyer works with a buyer's agent.)

Customer: One who buyer goods or services.
(A buyer working  with a traditional real estate agent is a customer. Just like when a car buyer  goes into the showroom to buy a car.)

Agency in Washington real estate refers to the company policy of  representation. Agents have no individual agency identity, they must follow the  company identity. There are four variations:

1. The traditional seller's agency. This firm represents only sellers. They  have signed an agreement with sellers in their office and from other offices to  try to get them the highest price and best terms. They usually still serve  buyers as customers because they can't serve them as clients.

2. Dual agency office. This firm was a type 1 above until they  had to tell home buyers the truth. Now they want to offer buyer agency services  to buyers while still hanging on to their listings. They promise to get sellers  the highest price unless there is a agent from their office who is acting as a  buyer's agent. In this case they represent both the buyer and the seller without  giving full service to either. This conflict of interest is bad for both the  buyer and the seller but great for the company because they get to pocket both sides of the commission.

On houses that are not listed inside the firm they may still be  dual agents if one agent from their company is trying to sell the house as a  traditional seller's agent while another is acting as a buyer's agent.

3. Buyers only office. This is a company that never takes  listings and only works for the buyer's best interest. This allows a higher  level of service and a higher level of loyalty. The Buyer's Agent of Ann  Arbor^{SM is a buyer's only office.}

4. Single agency office. This is a company that will represent  sellers and buyers, just never both in the same transaction.

WHAT THE  PRESS HAS TO SAY ABOUT BUYER'S AGENTS VERSUS SELLER'S AGENTS:

Los Angeles Time:

"Buyer agents work only for consumers and can save them money-and they don't  cost more to hire."

Money Magazine:

"Unlike the traditional agent who looks out for the seller, the buyer broker  acts as your advocate, helping you find the home you want and then negotiating  the lowest possible price."


Which Buyer's Agent?

The question now comes to which kind of buyer's agent to pick;  A buyer's agent from a office that takes listings (a dual agent), or a buyer  agent from a buyer only office. (Often referred to as an exclusive buyers  agent.)

Note: As reported on the Today show, an agent will never  introduce themselves as a dual agent. You must look at their buyer agency  agreement to see if it contains the dual agent double cross or find out if their  company lists homes for sale. In either case you are talking to someone who acts  as a dual agent. Unfortunately, even with the agency disclosure laws, some real  estate agents are still trying to hide the truth.

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WHAT THE PRESS HAS TO SAY ABOUT DUAL AGENTS VERSUS  EXCLUSIVE BUYER'S AGENTS:

Detroit Free Press

Buyers and sellers get less service in a deal with dual agents because they  no longer have someone bargaining on their behalf, but the brokerage reaps a  higher profit because it keeps the whole  commission.

Alan Fields from the book he co-authored "Your New  House"

"Consumers should be aware that any buyer's agent agreement that includes a  dual agency possibility (representing both the buyer and seller) is not  acceptable."

U. S. News and World Report

"Exclusive agencies are the best. They remove any conflict of interest, which  is the main reason for considering a Buyer Broker in the first  place."

Kiplingers Personal Finance  Magazine

You'll get the surest representation from a single-agency broker or an  exclusive buyer's broker."

Dan Birchman, Texas Real Estate  Expert

You have a choice of working with a traditional Realtor who spends 90% of  their time soliciting listings and representing sellers. Or choosing an  Exclusive Buyer's Broker, who spends 100% of the time helping the home buyer get  the best house possible. Make sure you choose an exclusive buyer's broker. There  is a difference.

Business week

To protect themselves, buyers can retain their own exclusive representative,  but be aware that a buyer's agent who also works as a seller's agent can  sometimes end up on both sides of the deal."

National Home Buying Institute press  release

Conflicts of interest occur when home buyers want to buy a home that is  listed with their buyer agent's company. This situation is called the in-house  sale and according to national statistics it happens to one out of every three  home buyers. Since a real estate agent cannot legally provide undivided loyalty  to both the home buyer and home seller at the same time, the agent must ask both  buyer and seller to give up their right to undivided loyalty by signing a  disclosed dual agency agreement. The dual agency agreement supposedly  facilitates the in-house sale and means double commissions to the only real  estate company involved in the transaction.

The tactic of baiting the consumer with undivided  loyalty and switching to dual agency may be illegal according to the guidelines  of the Federal Trade Commission. These bait and switch tactics are proving to be  costly to home buyers...

Money Magazine:

The best buyer brokers are so-called exclusive agents - that is, they  represent buyers, never sellers...

Mobility Magazine:

Only by using an exclusive buyer agent can a buyer be sure all information is  kept confidential. Only an exclusive buyer agent can give the buyer an  objective, experienced opinion of the homes viewed to ensure the buyer gets the  right home, in the right location, at the right price

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