In the News

The 'Conflict of Interest' that occurs when a Home Buyer is represented by the same Real Estate Broker as is the Seller of the home has become a serious issue for Consumer Groups.

These articles pinpoint the issues:

 

"An informal survey by long-distance company Sprint in 1991 showed that employees who used Buyer Brokers saved an average of 9% off the asking price, vs. 3% for all home buyers."

"To protect themselves buyers can retain their own exclusive representative, called a Buyer Broker...Your local agent may offer such services, but be aware that Buyer's Brokers who also work as Seller's Brokers can sometimes end up on both sides of the deal.

"A conflict of interest is more likely when a real estate firm that represents sellers assigns you one of its brokers as a Buyer Agent. That's why many people believe an "exclusive" Buyer Broker is preferable.  If there aren't any in your area, and you have to use a listing broker, "make sure they disclose when they are showing you properties they have a financial interest in," says Stephen Brobeck, executive director of the Consumers Federation of America.

Business Week

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"Agents: How to hire one for your side." "Most agents who show you homes don't represent your interests. They work for the seller, and their object is to sell the house for the highest possible price."

USA Today

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"You have a whole new evolution of practice in the marketplace," said Sharon Millet, a Maine real estate broker who headed the 22-member NAR task force that issued the report. Millet said that the report's recommendations are designed to give home buyers and sellers easier access to the "kind of representation" that they want.

Washington Post

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"Buyer advocacy appears to be taking off." "I'll never buy a house any other way." -Mrs. Renee Talley, Highland Park TX

The Wall Street Journal

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"Exclusive agencies are the best. They remove any conflict of interest, which is the main reason for considering a buyer broker in the first place."

Kiplinger's CHANGING TIMES

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"To Buyers: If you want representation, work with a Buyer Broker. They are legally obligated to represent your interests in any negotiations with sellers."

The Consumer Federation of America

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"Groups such as the Consumer Federation of America and AARP recommend using Buyer's Agents.

SmartMoney Magazine, June 1995

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"Many people don't realize that, unless specifically stated otherwise, brokers are legal representatives of sellers. A Buyer Broker, representing only the buyer, may be able to secure a better price and better terms."

Good Housekeeping

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"When one salesperson has a home listed for sale, and another salesperson working for the same brokerage locates a buyer, the second salesperson can't be a true Buyer's Agent.  Why?  Because both people work for the same brokerage.  A "dual agency" with both buyer and seller is the usual solution. To solve this problem, a few states are experimenting with laws allowing the agent who finds a buyer for a home listed with the same brokerage to be a fully-disclosed Buyer's Agent for the buyer.  This "legal fiction" enables the buyer to work with his own agent who, by law, doesn't also represent the seller."

Robert J. Bruss - Real Estate Weekly/The Virginian-Pilot

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"Buyer Brokers: agents that buyers can call their own...If your real estate agent isn't a Buyer Broker, he/she works for the seller...Buyers no long have to fend for themselves."

U.S. News & World Report

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"Level the playing field when you buy a home...You may get a better deal with your own broker pulling for you...The introduction of Buyer Brokers takes a horribly one-sided process and simply makes it fair," says one broker.

Medical Economics

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"Buyer Brokerage is becoming accepted. Unlike traditional real estate arrangements, under which the agent works for the seller, Buyer Brokers work for the buyer."

Florida TODAY

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"Confusion often arises because many buyers believe that the agent who shows them houses works on their behalf. In fact, subagents of the listing broker - often they are agents who work for another office - also act on behalf of the seller."

New York Times May 19, 1995

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"We all know that dual agency is not legally definable in the real world.  We should not offer anything less than 100% client-level services to our buyer/seller clients. We should reject all anti-consumer proposals that do not offer our clients protective fiduciary duties and responsibilities."

Robert McAvoy 
President of the New Hampshire Assoc. of Exclusive Buyer Agents

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"Unlike the traditional agent who looks out for the seller, a Buyer Broker acts as your advocate, helping you find the home you want and then negotiating the lowest possible price. The best Buyer Brokers are so-called exclusive agents - that is they represent only buyers, never sellers, and thus are not tempted to push a house on which they stand to earn a commission.

Money Magazine May 1995

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"When buyers do not use an exclusive Buyer Broker, they are generally dealing with a professional, trained selling agent who has pledged to get the best price and terms possible for the seller. The better option is to contact a national Buyer Broker network."

Mobility Magazine May 1995

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"Buyer Brokers have the buyer's interests in mind. They act as a personal advocate, hunting for the right house and haggling with the seller's agent.  In fact, a 1992 study by a national long distance phone company, found that 200 relocating workers who used buyer brokers paid an average of 91% of the offering price, whereas those using traditional brokers paid 96%."

Diversion Magazine for Physicians

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A bill approved by the State of Virginia is having a serious impact on consumers. The legislation rescinded the "common" law of agency relative to real estate brokerage relationships and relieved only real estate agents of any fiduciary responsibilities. This "common" law has protected both parties involved in contractual relationships for more than 400 years. Some examples include, trustees, guardians, attorneys, and brokers, until now.

CANMAR REALTY specializes in buyer's representation. 
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