What is a Home Buyer Realtor?

Buyers Real Estate Group: Minnesota Agents for Home Buyers – Representation

Home buyers on the cutting edge of what’s current in the Real Estate industry are choosing agents that ONLY represent home buyers. Buyer agents are a fairly new phenomenon. Before 1987, all real estate agents represented the home seller. Law suits initiated by home buyers brought this fact out in the open. (See our agency disclosure!)

Home buyers realized thatNobody told us who represented who, we had no idea that the agent involved didn’t represent us, too.” Consumer action groups demanded a change in the industry to “even the playing field”.  As a result, Exclusive Buyer Agencies sprung up all over the country.  These changes brought about the implementation of disclosure forms which the State of Minnesota dictates real estate agents must make sure you, as the home buyer, understand.

At Buyers Real Estate Group, we are licensed real estates agents who work for the best interests of Minnesota home buyers at all times. There are several types of representation available to those entering in to a real estate transaction. When you work with Buyers Real Estate Group, you have an exclusive buyer agent. That means we represent the best interests of home buyers at all times. We never represent the seller.

Recently, the National Association of Exclusive Buyer Agents, or NAEBA, sent out a warning to Consumers to be aware of “Fake” Exclusive Buyer Agents being on the rise. Their press release states that NAEBA Headquarters has seen complaints regarding “Fake” EBA’s increase from 2-3 per month to 2-3 per week! Safeguard yourself against false claims of Buyer Agency.

The other forms of representation include:

  • Seller agent: Representing the seller. Could become a dual agent.
  • Buyer agent: Representing the buyer. Could become a dual agent.
  • Dual agent: Dual agency occurs when the same salesperson or real estate company represents both parties to a real estate transaction. This role limits the level of representation the salespeople can provide, and prohibits them from acting exclusively for either party.
  • Facilitator: A broker or salesperson that performs services for a buyer, a seller or both but does not represent either party.
  • Exclusive Buyer Agent: Representing ONLY the home buyer at all times and NEVER represents the seller.

Neal Gendler of the Star-Tribune writes, “Unlike other U.S. metropolitan areas, two giant real estate brokerages together do about half the Twin Cities area’s residential transactions. That means there’s a good chance that a buyer with an agent from either of these two companies, as well as many others, will make an offer on a home listed by another agent from the same company.”

The state of Minnesota requires that real estate agents school home buyers and sellers about the different kinds of agency relationships at the “first substantive contact” by presenting them with the State mandated form called Agency Relationships in Real Estate Transactions. When the “first substantive contact” occurs, is defined differently by different agents. At Buyers Real Estate Group, the first substantive contact is defined as anything after “Hello”.

Matt Difanis, an agent with another company writes, “Both buyers and sellers benefit from the advice and zealous representation of their own agents, especially when those clients are suddenly confronted by adversity. At best, dual agency provides less effective representation for the same price as exclusive agency; at worst, dual agency leaves clients out in the cold while providing a strong financial incentive for the agent to cut ethical corners. I like my work as an expert consultant and advocate on behalf of my clients. Dual agency strips away the most important and most rewarding aspects of my job.”

Simply put, our focus is on YOU, the Twin Cities home buyer. Buyers Real Estate Group is a tremendous resource. Our initial meeting serves a purpose. It allows us to hear what you need and want in a house and it allows you to determine if your needs and wants in a professional REALTOR® are met. For more information, check out our sample contract.

Check out our list of Minnesota Buyer Agents.

NOTE: Neal Gendler of the Star-Tribune writes, “Twin Cities home buyersare among the most likely in the nation to find themselves being represented by a dual agent.”

Make sure your agent explains the different ways you can be represented.

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