Buyer's Broker- Real Estate
I am a California Real Estate Broker that works only with real estate buyers - a Buyer's Broker. As an Exclusive Buyer's Broker (Single Agency) I never represent a seller during a transaction. I focus purely on a buyer's needs and do not take listings from sellers. Newport Beach Life Real Estate Services is exclusively structured to help buyers looking to buy residential property, whether for a primary residence, a second or vacation home, a rental property, retirement property, or as an investment.
I feel that representing any seller creates a conflict with my brand promise: "I always work in your best interest." Working for only the buyer eliminates any responsible for looking after the interests of the seller. I am free to reveal nearly any information to you that will result in a better deal on the property. This commitment comes at a cost, when my buyers become sellers, I refer them to a reliable listing broker. Since I do not compete with local brokers for listings, make referrals, and bring buyers, it is easy to build a congenial and cooperative relationship with seller's agents and brokers. This helps my buyers.
Advantages of working with a Buyer's Broker.
"In a traditional home-buying real estate transaction, in many jurisdictions the real estate agents involved - even the agent assisting the buyer - are legally obligated to the seller. This is because a great many real estate agents work for brokerages known as dual agency brokerages, meaning that its agents accept listings on behalf of sellers and also represent buyers. Since many real estate agent fees are set as a percentage of the sales price, the natural incentive - for any agents involved in the transaction - is to get the highest price for the house and make the sale happen as soon as possible. For the most part, these are advantages for the seller." Source: The National Association of Exclusive Buyer Agents
FAQ
Q.What is a Buyer's Broker/Agent?
A. Prior to the formation of Buyer Agency, every person involved in the real estate process was an agent of the seller and all fiduciary duties were owed strictly to the seller. Even the agent who was working with the buyer was considered an agent of the seller! When a Realtor represents a seller, he/she is obligated to tell the seller anything that he/she can discover about the buyer. The buyer's agent's obligation lies with the buyer.
In the early 90's, advocacy groups did a survey of homebuyers and discovered that 78% thought they had been represented by the agent that sold them the property. These advocacy groups informed homebuyers and homebuyers started demanding equal representation.
Buyers, feeling that the deck was stacked against them, started demanding that they have equal representation in the transaction; therefore, Buyer Agency was formed in the early 1990's. Real estate brokers fought the introduction of Buyer Agency, but in the end the consumer won. The National Association of Realtors recently conducted a survey of homebuyers who had purchased a new home within the past five years. This survey discovered that 85% stated they would use a Buyers Agent on their next real estate purchase. It's only logical that buyers would choose to have an expert representing them on one of the most important transactions in their lifetime. Buyer agency is an agreement between you (the buyer) and the real estate agent that can last for one day to one year.
SOURCE: Buyers - Agents.com
Q. Does it cost me more to use a "Buyer's Agent" than a traditional agent?
A. No. Similar to a typical agent I work on a commission that is paid at the close of escrow. In fact, it is likely that a buyer's agent will save you money on your purchase.
Q. Why would a Buyer Broker work for a better price for the buyer if the agent is working on commission?
A. My brand is built around the promise "I always work in your best interest". It is a real promise, and to my benefit, often results in satisfied clients and referrals. Saving you $10,000 results in a a loss in commission of approximately $250, a minor expense to build good will and a positive reputation.
Q. Can a Buyer's Agent represent me if I buy a "For Sale By Owner"?
A. Yes. It is highly unlikely that a "typical agent" will deal with any home that is not listed and where a commission is not guaranteed. But a Buyer's Agent will approach For Sale By Owner homes with your permission. When I disclose to the seller that I am representing a buyer, normally the seller is receptive to negotiating a commission.
Q. Some agents say they can represent both me and the seller. How can this be?
A. Although such an agent may claim to be a “Buyer’s Agent”, their obligations to you as a buyer are ambiguous if they are woking for Brokerage that takes listings. When Agents of such brokers are woking for you they may be directing you to listings held by their Broker. In this case it becomes a “Dual Agency” because if they work with a buyer on a property listed by their employing broker, they have the same obligations to that seller as their broker.
This is what is called "Dual Agency" - it means that one office represents two principals in the same real estate transaction. One agent has the listing agreement with the seller. This agent or another agent with the same real estate firm has a buyer under a buyer agency agreement, thus dual agency is formed. What buyers usually don't understand is that when an agent shows a buyer any home listed with that agent's firm, that agent, or his or her firm, is obligated to protect the interest of the seller. You must be careful never to fall into a dual agency situation!
Q. What are the benefits of using an Exclusive Buyer's Broker?
A. Being an Exclusive Buyer's Broker/Agent means you have someone to help you who has NO allegiance to the seller. As an exclusive Buyer's Broker, I never take listings. If I am offered a listing, I refer is to a competent Brokerage I trust.
As an Exclusive Buyer's Broker my obligations and motivations are never ambiguous; you have an advocate - someone who is 100% on your side and who NEVER splits their allegiance. Since I never take listing, I have no fiduciary responsibility to a seller - I will never be pressured into revealing any of your negotiation strategy to the seller’s agent under any circumstances. My fiduciary responsibilities are to you alone.
Q. Since I am contracting with you as my "exclusive agent", will you do more than the "typical agent"?
I will work with you from day one in the Home Buying Process; the typical agent generally enters the process only when you need to view homes you found on the Internet. Most people start their own discovery process but this can be challenging and time consuming. I provide you the resources to conduct your own research with no strings attached. This website is rich with resources and provides the most advanced search technology that not only helps you find home but answers questions about neighborhoods as you search.
You get to know my market knowledge during this process, helping you make the decision to contract with me as your Exclusive Buyer's Broker. Since I have a contract with you for a specific task and time frame I have the confidence to provide you a level of service that the typical sales agent will never provide.
My goal is not only to help you to find the right property at the most advantageous price and terms, but to find the "Perfect Match Between Home, Neighborhood & Lifestyle. When you select a home I’ll guide you through the negotiation process and help you with obtaining a mortgage.
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