A new article on CNN Money talks about how people should use an Exclusive Buyer Agent.... Unfortunately - the terminology they used was "buyer agent" in this article at CNN Money

But the point is clear... use an agent that is on your side - and the only type of agent that you can be assured of that does that - is an agent that doesn't list properties - so they can give you unbiased home showing, no conflicts of interest, and always be on your side 100% of the time.

I think most people get confused - as there are so many terminologies in Real Estate that they don't understand... An agent that works at a company that lists property for sale calls themselves a "buyer agent" - that is what most people think they are getting - someone that will always be on their side 100% of the time. It is too bad for the consumer - that that isn't the case. These agents can get into what is called "dual agency" situations where they are representing you and the seller equally.

Unfortunately - there is only a 20% upfront disclosure rate by "buyer agents" about how they can get into such conflict of interest situations - even though the law says that they should always disclose that they could get into that - with the potential client (upon first meeting.) Without "named differention" the consumer can get confused.

Hmmm - buyer agent - sounds like they will be representing my interests 100% of the time... That is what is so nice about the use of the term "Exclusive Buyer Agent" - because officially - it means that the agent and their company don't list property for sale - and so they can never get into a conflict of interest situation. 

Though they blew that terminology in the article -- that is what it is talking about... And even more unfortunately - many traditional agents sometimes use the word "Exclusive Buyer Agent" - when they aren't - which confuses the public even more. What is what? What kind of representation is someone giving me? What name can I trust? What does the name mean? etc.  When in doubt - get it in writing.

With our company - there are no home showing biases based on what the commission payout (co-op) is in a listing.  if the co-op commission in the listing is higher than what we contract with the buyer - the buyer gets the difference in their pocket.  We also ensure that our financial interests are aligned with our buyer client's - so unlike other agents - we get paid a bit more when they buyer's price goes down.  Most agents get paid more when their buyer comes up in price.   That is what happens when a buyer doesn't have an agreement with an agent.

A traditional agent might be influenced by what is paid out as the co-op - perhaps pushing the higher commission property a bit more - all else being equal....  Though I don't think that enters the picture for most agents - the fact is - it could be an influencer.   

Like the article mentions - we give all advertised bonuses directly to the buyer - as we feel that the buyer should have received a price discount for that anyway...