Buyer Agency, Hire Your Own Buyer Agent, Beware of Casual Buyer Agents, Exclusive Buyer Agents, Buyer Brokers

In general, home buyers can work with agents who represent the seller, agents who represent the buyer, agents who try to represent both the seller and the buyer (dual or designated agents) or agents who represent neither the buyer or the seller (transaction brokers or facilitators). Agents who represent the seller, by law, must look out for the seller’s best interest and work to get the highest price and best terms for the seller. And, generally, agents who attempt to work for both (dual or designated agents) or work for neither (transaction brokers or facilitators) must remain neutral.

Agents owe fiduciary duties, client level services to their clients. As a buyer you should seek out the services of an agent who will give you these full duties. These duties generally include: Confidentiality, Accountability, Reasonable Skill and Care, Undivided Loyalty, Obedience to Lawful Instruction, Advocacy and Disclosure of all material facts pertaining to your purchase. An agent who represents the seller can not provide any of these duties to you, the buyer. And, an agent operating as a dual or designated agent or transaction broker or facilitator can only provide limited fiduciary duties.

A buyer’s agent acts like a consultant to you and should never try to “sell” you a home. Such an agent is obligated to work in a buyer’s best interest and to get a buyer the best price and terms in a transaction and to act as an advocate on your behalf. Having a buyer agent working for you is the best method to use when buying a home.

What if you start off working with a buyer agent but end up wanting to purchase a home listed by that agent or another agent in the same real estate company? Your buyer agent can’t continue to represent you fully as a buyer agent as the firm and all agents associated with that real estate company would be representing the seller of the home you have chosen to buy. There are several options for you at that point. One option is that you can continue working with the agent you were working with but in a different relationship then you have been in. They won’t be representing you fully as a buyer agent anymore. They could now work with you as a “customer” rather than a “client”. They would no longer be able to provide the full fiduciary duties to you as they would be providing them to the seller exclusively. For a discussion of client vs. customer status see the side panel to the left. Another option, provided both the seller and you agree and give your informed consent, would be for the real estate company to function as dual agents. In that event, the company and its agents would have to remain neutral. They couldn’t represent either side against the other, but rather would function more like a mediator. A third option would be for the real estate company to release you from any further obligation to them and you work with a new agent with a different company who then would be able to fully represent you. Which option is best for you if the agent can’t represent you fully? That depends on how comfortable you are with regard to understanding the process. You may very well be able to continue in one of these situations without it negatively affecting your purchase. All agents in NY State still have to deal with you honestly, fairly and in good faith and must disclose all facts known to the agent materially affecting the value or desirability of property, except as otherwise provided by law, regardless of the agency relationship that they have with you. For a copy of the agency disclosure form for NY State see side panel to the left.

The best option, if available, is to use an exclusive buyer agent. Fortunately for you there is one exclusive buyer agency company operating in the greater Albany, NY area - Home Buyers Best Realty LLC. Tom Wemett is the founder, manager and broker of record for Home Buyers Best Realty LLC and founded the company on a “conflict-free” business model for home buyers only. A true exclusive buyer agent is one who represents buyers only and who also is with a company that doesn’t list property for sale or represent sellers. All other agents who work with buyers in the Albany, NY area are with a company that takes listings and hence prone to conflicts of interest and a compromise of their fiduciary duties to you. I’ve represented buyers only for the last 18 years. I’ve taken every buyer agent course and certification program that is offered in order to be the best I can at representing buyers. That definitely puts me a head above all other agents in the area besides my representing buyers only.