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Is there really an advantage to working with an exclusive buyer's agent over an agent who also takes listings?
The concept appeals to me, as it would seem the exclusive agent would have less (even if unconscious) bias toward their own listings. There do, however, seem to be very few exclusive agents and it seems to be difficult to find feedback on them other than on their own websites. Any insight into whether it really pays to limit my choice of agent in order to work with an exclusive buyer's agent would be appreciated. Thanks!
Is there really an advantage to working with an exclusive buyer's agent over an agent who also takes listings?
The concept appeals to me, as it would seem the exclusive agent would have less (even if unconscious) bias toward their own listings. There do, however, seem to be very few exclusive agents and it seems to be difficult to find feedback on them other than on their own websites. Any insight into whether it really pays to limit my choice of agent in order to work with an exclusive buyer's agent would be appreciated. Thanks!
Not sure about other states...but in NC a buyer (or seller) can absolutely elect to not allow their respective agent to operate in dual-agency.
When this election is made; and an agent has buyer-clients who are interested in a property for which they are the listing agent; they will often refer the buyers to another agent in the firm to exclusively represent them in the transaction.
Even if a buyer and/or seller doesn't elect to disallow dual-agency; most agents with integrity will refer-out anyways in many cases. IMO (and fortunately in the opinion of many quality agents) it really isn't possible to negotiate/represent both sides of a transaction with the highest-level of fiduciary responsibility.
Is there really an advantage to working with an exclusive buyer's agent over an agent who also takes listings?
The concept appeals to me, as it would seem the exclusive agent would have less (even if unconscious) bias toward their own listings. There do, however, seem to be very few exclusive agents and it seems to be difficult to find feedback on them other than on their own websites. Any insight into whether it really pays to limit my choice of agent in order to work with an exclusive buyer's agent would be appreciated. Thanks!
I think it's imperative to find a buyer's agent who really likes to represent buyers! But not necessary that they will ONLY represent buyers. It might seem like a fine distinction, but it is an important one. Not all listing agents really like driving buyers around, so find one who does... but I also don't know any buyer's agents who will NEVER take listings. In fact, such an exclusive model might actually just result in a lack of broader perspective to the process.
As for bias on the agent's own listings.... It would be unusual for even a really successful agent to have a complete lock on all the good listings. Unless it's a particular neighborhood you must be in where literally everyone there lists with Bob... I think you should have a fair selection and choice. And hopefully YOU will be strong enough in your opinions and choices to know if you really like Bob's listing more than the others, or he's pushing you into it.
And if you DO look all over town and really like Bob's listing the best? You can ask Bob for a referral to another agent if you're concerned. You may or may not think it's an issue. Depends a lot on what kind of home, and what kind of offer you want to make. Is it going to take a lot of negotiation to make this deal work, or do you like everything, including the price? If you feel funny about it, Bob should be happy to give you a referral or let you out to seek your own agent.
I have shown our own listings to buyer clients before. They've known the listings were our listings. So far, none have been the right house for our client, and I don't think they felt pressured to like them more because of our relationship to it. In some cases, I don't think I could have represented both sides evenly, because of what I knew about each. In some cases I could have. It just depends.
There have been MANY times when a call about one of our listings results in a buyer who goes on with us to buy something else, because our listing was not what they were looking for and we were honest about that. That's not an uncommon story either.
Thank you both for your helpful input.
Just to clarify a bit, I am asking about agents who ONLY represent buyers when I say exclusive. There are three (that I've found online) such agents in the area I'm looking at moving to in SC. Would such an agent have any advantage to me over a buyer's agent at a regular brokerage?
The fact that they want to specialize in buyers is a plus for you! I would definitely talk to them.
Too many variables to know if that aspect alone give them a clear advantage. It's all about the skills and aptitude of those agents and how well they work for you.
Choose the agent you get along with the best, the one who you think best 'gets' you... Whether that agent is one of the exclusive buyer agents, or not.
Is there really an advantage to working with an exclusive buyer's agent over an agent who also takes listings?
The concept appeals to me, as it would seem the exclusive agent would have less (even if unconscious) bias toward their own listings. There do, however, seem to be very few exclusive agents and it seems to be difficult to find feedback on them other than on their own websites. Any insight into whether it really pays to limit my choice of agent in order to work with an exclusive buyer's agent would be appreciated. Thanks!
No.
There is no advantage to working with an EBA.
It is merely a marketing shtick. No agent needs a shtick to be effective.
Qualify your agent to your satisfaction in terms of experience, skill, character, responsiveness, local knowledge, and, really, are they someone you are comfortable with personally.
And, don't allow dual agency or designated dual agency, and you should be in good shape.
When you engage an agent using a Buyers Agency Agreement, only do so if the agreement includes the right to terminate the agreement unilaterally up to the point you locate the house you want.
The only advantage that I can see to using a buyer's agent is having the buyer's agent drive you around to houses and open all the doors so you don't have to make individual appointments with listing agents.
Beyond that the buyer's agent doesn't make a nickel off you until somebody sells you a house. The agent's priority is the commission first, you second.
If you prefer the convenience of being chauffeured around from house to house, fine, go for it. Just make sure you do your own due diligence and verify everything you are told by anybody.
The only advantage that I can see to using a buyer's agent is having the buyer's agent drive you around to houses and open all the doors so you don't have to make individual appointments with listing agents.
Beyond that the buyer's agent doesn't make a nickel off you until somebody sells you a house. The agent's priority is the commission first, you second.
If you prefer the convenience of being chauffeured around from house to house, fine, go for it. Just make sure you do your own due diligence and verify everything you are told by anybody.
The OP had a sincere and reasonable question, which you have not addressed.
Thank you Mike, the marketing angle was the sort of thing I was wondering about.
adjusterjack, since we will be moving to another state, an agent will be very helpful to us. Although we've visited the area several times and have a pretty good idea where we want to be, we don't know what we don't know. Having an advocate who has a more in-depth knowledge of things like plans for a new high school in the middle of that nice rural area we're looking at can be invaluable.
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That's not an uncommon story either.
