For the past 90 years or so, all real estate agents were Exclusive Seller’s Agents.  When a real estate agent lists a home for sale, that listing agreement is actually a contract.  An agent from the listing company, as well as any agent from any company other than the listing company, by law represents the interests of the seller, in a client-level relationship (subagency).   This includes legal duties to negotiate for the highest possible price at the best possible terms for the seller, and to disclose everything they know about any buyer that would increase the seller’s final selling price, and improve the terms of sale. 

Example:  If a buyer customer tells an ordinary seller’s agent to make an opening offer of $340,000, but mentions he/she is also willing to pay the full asking price of $400,000 for the home if necessary, that agent is required by law to pass this information on to the seller (fiduciary duty of full disclosure).  This is traditional real estate [seller's] agency, and the way the real estate business has been for many, many years. 

Seller’s agency is good for sellers, but not very good for home buyers…

…which is why Exclusive Buyer’s Agencies and Buyer Agency Representation have grown tremendously in popularity in the U.S. over the past several years.

BEWARE:  Most real estate agents claiming to be ‘buyer’s agents’ are not true [exclusive] buyer’s agents!  This practice exposes the buyer to non-representation or dual agency on a property listed with that agent’s company, and only serves to benefit the financial interests of the listing company.  They are non-exclusive buyer’s agents, although they may require you to sign an ‘exclusive right to represent agreement’, which only benefits the agency, not the buyer.

If an agent claims to be an exclusive buyer’s agent, and that agent lists property for sale, or works for a company which lists property for sale, that person/agency is not an exclusive buyer’s agent.  This is an unethical and fraudulent use of  ‘exclusive buyer’s agent’ as an agency and agent choice.

Exclusive buyer’s agents work for companies called Exclusive Buyer’s Agencies.  Exclusive Buyer’s Agencies and their agents never list property for sale.  Sellers are considered customers, not clients (Refer to Definitions, Part 1 to explain these key terms).   

Not listing homes for sale is the only way to ensure, by law, that home buyers are fully represented 100% of the time by the company with undivided loyalty on any property, without the pitfalls of dual agency or non-representation to the buyer.   This practice enables the exclusive buyer’s agent and his company to concentrate on finding the best home for the buyer client.   No ordinary seller’s agent saying they can act as a ‘buyer’s agent’ can make this claim or guarantee undivided loyalty 100% of the time.

Exclusive buyer’s agents verify listing information for accuracy, provide fair market value reports, advise buyers on how to negotiate most favorable price and terms, protect and maintain buyer confidentiality of sensitive financial and personal information, disclose what is right and wrong with any property of interest, and much more.  Exclusive buyer’s agents are typically Realtors with the same access as any Realtor to visit any property listed with any  seller’s listing company.