The truth is that real estate agents are legally bound to represent the seller. Until recent years, many buyers did not understand the role of their real estate agent. In addition, many agencies would not enlighten their clients about that fact. In the past, if individuals were interested in buying a home, they would choose a real estate agent. Most buyers did not realize that there was a better option for protecting their interests. They should have been selecting a buyer's broker.

Since the 1990s, the Federal Trade Commission (FTC) has taken steps to ensure that real estate agents are more upfront about their role. By 1993, due to pressure by the Federal Trade Commission, most agents nationwide were complying with the FTC regulation to disclose their role to customers. Real estate agents had to explain to buyers that they were working in the best interest of the seller.

The latest 2010 HUD Settlement Cost Booklet recommends the use of an Exclusive Buyer`s Agent, "If you want someone to represent only your interests, consider hiring an ?exclusive buyer`s agent? who will be working for you."

Yet many homebuyers still do not understand about the different types of real estate agencies. Individuals need to know why it is so important that they choose a buyer?s broker. Buyers must have an agent who is working exclusively for them.

A buyers agency is a company whose only interest is providing services for the buyer. This agency tries to get the lowest price and best available terms for buyers. There are three additional types of real estate agencies but only the buyer?s broker provides an exclusive service to a buyer. The agents at a traditional seller`s agency sign an agreement with sellers to try to get them the highest price.

In addition, within a single agency, agents represent buyers and sellers - as long as two agents do not work on opposite sides of the same sale. A dual agency attempts to work on both sides of the fence - as a representative for buyers and sellers.

Dual agencies can create a conflict of interest. While representing buyers and sellers is beneficial to an agent and company, it is rarely fair to the buyer. An exclusive buyer agency, such as Elika for New York City real estate, works only for the buyer. They do not list homes for sale, therefore, no conflict of interest ever arises with buyer?s brokers.

A buyer agency discusses the requirements, lifestyle, and budget and searches the market to identify the best property options. They will research and perform a comparable market analysis to establish fair market value. A buyer agency provides unbiased feedback and regular updates. They coordinate relevant services such as lawyers and mortgage brokers. A buyer agency will save you money and time and make buying a stress-free experience. The seller pays the buyer's broker fee but the he works for you.

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