Exclusive Buyer Agency Agreements
What they are and why they are valuable to real estate buyers.
There are so many misconceptions about what an Exclusive Buyer Agency Agreement is, and what it can do for buyers. There are some traditional real estate professionals that say it should not be signed, however, most that make these claims also list properties--not recognizing the value of these agreements to buyers. Buyers need to know that an exclusive buyer agent works for them only, and buyers should use an exclusive buyer agency agreement to negotiate--laying the foundation of mutual understanding upfront.
Any exclusive buyer's agent worth their weight in gold will negotiate an exclusive buyer agency agreement until both buyer and agent feel good about working together. With expectations communicated clearly upfront, and in writing, there will be no room for misunderstandings to develop. There should also be an exit clause negotiated in writing, so that there is peace of mind for everyone involved.
Exclusive Buyer Agency Agreements Not the Same as Non-Exclusive Buyer Agency Agreements
An exclusive buyer agency agreement should not be confused with a non-exclusive buyer agency agreement. They are both very different. An exclusive buyer agency agreement makes the buyer a "client," which means that the buyer is owed "fiduciary duties" by the agent. A non-exclusive buyer agency agreement makes the buyer a "customer," which means that no fiduciary duties are owed to the buyer.
What are "fiduciary duties?"
According to Random House Webster's Dictionary 3rd Edition, "fiduciary" means:
1. a person who holds something in trust for the benefit of another, 2. of or being a fiduciary, 3. of, based on, or in the nature of trust or confidence
Bottom line is that buyers have a choice and, with knowledge of those choices, buyers have the power to make the best decisions for themselves; real estate decisions included.
Exclusive Buyer Agent Seattle Blog
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