What is an EXCLUSIVE BUYER AGENT and do I need one when BUYING A HOUSE?

Hey, everybody, it’s Janine Sasso, are your local Chicagoland real Hawaii? And in today’s episode, we will be discussing what an exclusive buyer agent is. So stay tuned. Let’s start off with the definition of an exclusive buyer. Agent is an agent that only represents buyers who will never represent a seller or take a listing. Now, what does that mean for you? One of the clauses is that they cannot get caught in between a seller and a buyer representation. This is what we refer to as dual agency. An agent all of a sudden has a perfect listing for the perfect buyer, which also is claimed. And now he’s stuck right in between his seller and his buyer. So what is he to do as a double agent? You do have the chance to represent both parties and become a transactional broker in which you really cannot go for either parties best interest, because it’s impossible to get the seller the most amount of money while getting the buyer the best deal possible. So you get reduced to doing paperwork. Now the other option is you take one of the parties and you refer them over to another agent. In this case, you then working for one party, you have an agent on the other side working for another, and the deal can still work out.

However, the risk is that sometimes information gets transferred between the parties, between the agents, and then you’re kind of stuck in between a rock and a hard spot again. So what the National Association of Realtors came up with is the exclusive buyer agent. The exclusive buyer agent will never get in this position because they do not represent sellers and they do not take listings. But what’s the big difference between a buyer agent and an exclusive buyer agent? Now, many realtors you encounter will be buyers agents, not exclusive buyer agents, but buyer agents. So the exclusive buyer agents, one of the main differences is that because he only represents buyers, he oftentimes needs to encompass a much larger area that he covers for his business, needing to cover more area. Oftentimes goes hand in hand with you cannot niche down on a market. You are not as knowledgeable on a neighborhood than a very hyper local or local agent that is a buyer’s agent. Also, the exclusive buyer agents sometimes are independent of brokerages, meaning that the brokerage to brokerage relationship. Larger companies have four comingsoon listings, private listings. That exclusive buyer agent oftentimes misses out on that.

Just because he’s kind of separate from this entity. So if you don’t want to miss out on, you know, a super neighborhood that oftentimes sells before something hits the market, maybe a buyer agent that has, you know, the ins and outs of the neighborhood might be a better solution for what you need. But regardless of if it’s an exclusive buyer agent or buyer agent, the most important part is that you find somebody that represents you that you can trust, that listens to you, and definitely makes sure that he gets all your wants and needs in the home purchase. Correct. That’s it for today’s episode. I hope you enjoyed it. And stay tuned for next week.

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