About Exclusive Buyers Agents

What is an Exclusive Buyer’s Agent (EBA)?

Simply put, an EBA is a real estate agent who works with a real estate company that does not accept property listings. Neither the agent nor his/her company works for sellers – ever! Both the agent and his/her company represent only buyers.

What difference does it make if the agent’s company takes listings or not?

There is a big difference! Technically, in North Carolina, you agree to be represented by a real estate company, not an individual agent. So, if you fall in love with a property listed by that company, the company would be in the position of serving two clients with directly opposing interests – the property owner (seller) and the buyer (you).

This situation is permitted in North Carolina. It is called “Dual Agency”. Frankly, the only party to the deal who benefits from dual agency is the real estate firm, which will earn the selling-side commission from its listing agreement with the seller and the buying-side commission from its buyer’s representation agreement with you! Unfortunately, neither you nor the seller will benefit from your individual agent advocating on your behalf because North Carolina law forbids agents in dual agency situations from advocating for either side. That means your agent will be unable to offer the most fundamental advice. For example, when you ask, “What do you think we should offer for this property,” by law, the agent must tell you “I’m sorry. I can’t advise you on that.” An Exclusive Buyers’ Agent’s company doesn’t accept listings, so he/she is never in the position of being a dual agent. An EBA always works for you and always advocates for you.

One more difference is that an agent working with a company that takes listings may tend to promote those properties over other properties that may better suit your needs.

What is the difference between an Exclusive Buyers’ Agent and a buyers’ agent?

Many real estate companies employ agents who work only with buyers. However, an agent can only be an Exclusive Buyer’s Agent if his/her company never accepts listings.

I’ve seen other agents who work with companies that take listings call themselves Exclusive Buyers’ Agents. How is that possible?

Buyers’ agents who call themselves Exclusive Buyers’ Agents, but work for companies that take listings are not Exclusive Buyers’ Agents. By definition, an Exclusive Buyers’ Agent works only as a Buyers’ Agent. If he/she works as any other type of agent, they can not be an Exclusive Buyers’ Agent. Some agents work only with buyers (which is different from working only as a Buyers’ Agent), making them a Buyers’ Agent most of the time. However, whenever one of their clients becomes interested in a listing with their company, the agent becomes a Dual Agent. Any agent who can be put in a position of working as a dual agent is not an Exclusive Buyers’ Agent.

Will I have to sign a contract if I use an Exclusive Buyer’s Agent?

Whether or not you will be required to sign a contract initially depends on the agency’s policies. In North Carolina, all agents are assumed to work for the seller, unless they have a buyer’s representation agreement with the buyer. Initially, the agreement can be a simple verbal agreement. However, North Carolina real estate law requires an agent to have a signed written agreement before he/she can write an offer on the buyer’s behalf.

Because Just For Buyers’ Realty never works for the seller, we will need at least a verbal agreement that we are representing you before we can start working on your behalf. We will then provide up to three phone consultations and one area tour under the verbal agreement. This will give you the opportunity to get to know your Just For Buyers’ Realty agent and determine if she/he is a good fit for you before committing to work with us. Once you feel comfortable with choosing Just For Buyers’ Realty as the agency you’ll engage to assist you with finding your new home or property, you’ll sign an Exclusive Buyer’s Representation Agreement and we will arrange for your first series of home tours.

If I’m uncomfortable signing a contract that commits me to using Just For Buyers’ Realty, Inc. as my representative in the real estate transaction, what should I do?

You should be frank and discuss your concern(s) with one of our agents. We are not here to trap you! We’re here to assist you. Our goal is to make sure you have the best representation possible in your real estate transaction. We work to make sure you pay as little as possible to acquire the property that best suits your needs and desires while making the entire process as smooth and trouble-free as possible for you.

We recognize not every one of our agents will be the perfect match for every potential client. But, we DO recognize it is critical the agent working with YOU is a perfect match! That’s why we provide as many as three phone consultations and one in-person area tour with you before asking you to sign a contract. If you’re still not sure, you are encouraged to talk with our Broker-in-Charge about the possibility of working with another Just For Buyers’ Realty agent. Remember, we all want your home or property buying experience to be a positive one and we acknowledge up front that not all personality types automatically make for great working partnerships. So, please don’t settle for the wrong agent or, worse, start all over again because you are worried about hurting the first agent’s feelings or causing an uncomfortable situation.

Will it cost more to use an Exclusive Buyers’ Agent?

No. It costs the same to use an EBA as it does to work with a traditional agent.

How are Exclusive Buyers’ Agents compensated?

Different firms have different policies. At Just For Buyers’ Realty, Inc., our agents’ fees are most often paid by the listing agent who agrees to share his/her compensation with the agent who brings a buyer to a transaction that closes successfully. A common question is, “If you’re receiving compensation from the agent representing the seller, aren’t you really working for the seller?” The answer is an emphatic, “NO!” When you take a close look at almost any transaction, it is the buyer who provides the money that pays for virtually all of the costs associated with the purchase of a property. Even if that weren’t the case, it’s the contract that determines for whom an agent is working, not where the agent’s payment comes from.

What if I have a question about Exclusive Buyers’ Agents that hasn’t been answered here?

Call Kathleen Baylies, Broker-In-Charge at Just For Buyers’ Realty, Inc. Her number is 910-470-3190. She’ll be happy to answer any questions.