As a buyer in El Paso, did you ask the agent showing you a home who he/she represents? Unless you ask, that agent probably represents the seller and will most definitely have you sign an “intermediary agreement”. When you sign this type of agreement in El Paso TX you are being asked to keep the same brokerage as the Seller so that the broker can keep the total commission in the same office.
Today, with the advent of the internet, more home buyers are educating themselves about the buying process. As a result, many are choosing to be represented by a Exclusive Buyer's Agent. A buyer’s agent will take the buyer through the entire process. The Buyer’s Agent will share his/her experience and knowledge of the market then negotiate the best outcome for the buyer saving him/her thousands of dollars.
Buyers did not always have a choice. Up until three decades ago, real estate for sale was traditionally sold by the listing agent that obtained the listing from the seller and represented only the seller. Another agent called the "selling agent," would show the house to the buyer, but was acting as a sub agent of the listing agent. As a sub-agent of the listing agent he or she had a legal obligation to report to the seller all information the buyer revealed including any information about the buyer's financial position. Both the listing agent and the sub-agents had a fiduciary duty, a legal and moral obligation, to act in the best interest of the Seller.
Buyer’s representation did not change until 1983 when the Federal Trade Commission did a study that found 72 % of all buyers mistakenly believed the agent they worked with was representing their interests. By 1988, most states implemented disclosure laws that require agents to disclose who they represent upon their first substantive communication with a prospective buyer. Although, a 2001 survey found that 46% of home buyers used a Buyer’s Agent, more often than not real estate listing agents in El Paso TX still tend to forget their ethical duty to disclose their agency. The lines become very blurred particularly for Builder’s listing agents and El Paso Realtors whose bread and butter comes from listing homes. Real Estate designations are great but an ABR (Accredited Buyer’s Rep) doesn’t tell you where the agent’s loyalties lie. The true litmus test is asking the agent how much of his business comes from listing properties. A Buyer has the right to ask questions of the agent that will be representing him/her in the most important financial decision the buyer will make.
Any agent can arrange property showings, suggest sources of financing, provide accurate information and explain forms. But a Exclusive Buyer's Agent should perform services for you that the seller's agents can't, like show you reasons not to buy a particular property; negotiate the best price and terms for you; write contingencies in the contract that protect you; and keep confidential any information that could hurt your bargaining position.
There may be a home you want to buy that is listed in the same brokerage as your buyer’s agent. Your agent will ask you to sign an Intermediary agreement where his/her brokerage acts to facilitate the transaction. The best way out of this dilemma is simply to terminate your agreement with that agent and find another buyer agent not affiliated with that firm.
If you would like more information on Exclusive Buyer’s Agency in El Paso visit Russell-Realtor.comArticle Source: http://www.russell-realtor.com/el-paso-real-estate-blog.html
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