The Home Buyer's Agent of Ann Arbor, Inc. A different kind of REALTOR.
1908 W. Stadium Blvd., Ann Arbor, MI 48103
734-662-6240 or email to send a note
Buyer's agent or traditional seller's agent?
Buyer's agent or traditional seller's agent?
History
For the past twenty five years or so home buyers have had two kinds of agents they could use to buy a home, buyers agents or sellers agents. The problem was that very few home buyers knew that buyers agents were available. Traditional real estate agents were taught to make the best of this confusion and as a result most home buyers thought the agent showing them homes represented them. In fact, the agents were legally obligated to represent the sellers unless there was a written agreement with the home buyer to represent them.
This confusion about the roles of the real estate agents is one of the major reasons the public has such a low opinion of the real estate industry. The Federal Trade Commission did a study of the real estate brokerage industry in 1983 and determined that the vast majority of home buyers thought that the real estate agent showing them homes worked was working in their best interest. The vast majority was wrong! The FTC then started putting pressure on the states to have real estate agents disclose in writting to consumers who they represent.
In the early nineties, most states adopted agency disclosure laws requiring real estate agents to finally tell consumers the truth about who they were working for. The National Association of REALTORS had long been against buyer representation in the market place, but with the requirement that real estate agent now tell consumers the truth, the handwriting was on the wall. Few buyers would knowingly want to work with agents that are working for the seller's best interests.
The NAR did a reversal and endorsed buyer agency as a alternative in 1993. In 1994 Michigan's agency disclosure law prompted the general manager of the area's largest real estate company to say "It's the single most important change in real estate law in all my 19 years in real estate" It is a sad statement about the real estate industry that a law requiring agents to tell the truth can by itself be a tremendous change.
Now in Michigan most home buyers use some form of buyer's agent.
The real question for a home buyer is:
Do I want to use a part time buyer agent from a traditional office and expose myself to the dual agent double cross? (Some areas of the country refer to this type of agent only as a dual agent.)orDo I want to use an exclusive buyer's agent and get 100% loyalty 100% of the time?
Wondering
which company/agent to use?
Basic definitions:Client: One operating under the protection of another.
(There is a client relationship when a seller works with a seller's agent or when a buyer works with a buyer's agent.)Customer: One who buyer goods or services.
(A buyer working with a traditional real estate agent is a customer. Just like when a car buyer goes into the showroom to buy a car.)Agency in michigan real estate refers to the company policy of representation. Agents have no individual agency identity, they must follow the company identity. There are four variations:
1. The traditional seller's agency. This firm represents only sellers. They have signed an agreement with sellers in their office and from other offices to try to get them the highest price and best terms. They usually still serve buyers as customers because they can't serve them as clients.2. Dual agency office. This firm was a type 1 above until they had to tell home buyers the truth. Now they want to offer buyer agency services to buyers while still hanging on to their listings. They promise to get sellers the highest price unless there is a agent from their office who is acting as a buyer's agent. In this case they represent both the buyer and the seller without giving full service to either. This conflict of interest is bad for both the buyer and the seller but great for the company because they get to pocket both sides of the commission.
On houses that are not listed inside the firm they may still be dual agents if one agent from their company is trying to sell the house as a traditional seller's agent while another is acting as a buyer's agent.
3. Buyers only office. This is a company that never takes listings and only works for the buyer's best interest. This allows a higher level of service and a higher level of loyalty. The Home Buyer's Agent of Ann Arborsm is a buyers only office.
4. Single agency office. This is a company that will represent sellers and buyers, just never both in the same transaction.
U. S. News and World Report
"Like it of not, the real estate agent helping you house hunt is usually working for the seller and is legally bound to try to get the seller the highest price. But buyers no longer have to fend for themselves. You can hire a buyer agent to work on your behalf."
Los Angeles Times
"Buyer agents work only for consumers and can save them money-and they don't cost more to hire."
Money Magazine
"Unlike the traditional agent who looks out for the seller, the buyer broker acts as your advocate, helping you find the home you want and then negotiating the lowest possible price."
Interested? drop us a note at send a note or call (734) 662-6240.
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