Of course it will be helpful for you to know what you should be able to expect from a Buyer's Broker. A good one will be able to differentiate the things they can do that a traditional agent cannot. One Buyer's Agent recently ran an ad that said, "Other agents would lose their license if they did what we do." That's a clever way of pointing out that there is a difference!

There are some outstanding differences that immediately come to mind. A Seller's Agent will typically try to sell their own listings first and if there is no interest move to other properties in the MLS. They seldom will show properties in which their commission is not protected, A Buyer's Broker will typically start with the MLS and move on to For Sale By Owners, the foreclosure arena and even properties not on the market at all. A traditional agent will show a limited number of properties and utilize sales techniques to close the deal on the one the buyer likes best. A Buyer's Agent will show any and all properties that fit the criteria that emerged out of the initial counseling session. A Seller's Agent must disclose any material defects but not deficiencies in the property as must a Buyer's Agent. By law a Seller's Agent must use their experience and bargaining talents for the seller. A Buyer's Agent must develop a negotiating strategy for the buyer. A traditional agent must be concerned with the sale of the property that they think fits the buyer's objectives. The Buyer's Agent must counsel the buyer and help them determine and clarify what their objectives are. Buyer Agency is much more consultative and counseling-oriented in its approach. A subagent cannot unbundle the services for a buyer but must work within the seller's prescribed framework. An agent working for the buyer can agree to focus only on the work the buyer needs or wants done. A subagent cannot legally put together two offers at the same time for the buyer and present the lower. A buyer's representative can prepare two offers and submit the lower first without telling about the second. An agent working for the seller cannot advise a buyer that other similar properties have sold for less recently. A Buyer's Broker not only presents such information but helps the buyer study and interpret it. Without the seller's permission a seller's agent or subagent cannot tell the buyer of the seller's urgency to sell, adverse circumstances that would affect their bargaining position, or that there are other properties at a better buy. By law they must tell the seller anything and everything the buyer has told them. There can be no confidence or loyalty on the part of the seller's agent or subagent toward the buyer.

One concern about constantly switching agency hats from seller's agent/subagent to buyer's agent is the difficulty in reorienting. If I am usually in a sales mode with customers, how do I make the switch with a buyer I am now responsible to represent? If I spend most of my time protecting and working for the seller, how do I transfer those agency skills to the buyer? If it took me years of experience to learn how to effectively represent a seller, can I simply jump into buyer agency and go on with business as usual? My concern in all of this is that buyer agency may get a bad rap based on the untrained, unskilled Buyer Brokers who view it simply as another way to make a sale.

Perhaps rather than focus on the issues of counterfeit buyer brokering we ought to look at what authentic Buyer Agency looks like. I understand that when the Federal Bureau of Investigation trains their agents in identifying counterfeit money, they do very little in the way of competing the real with the phony. Instead they insist that their agents totally familiarize themselves with the genuine currency. The philosophy is that if they are familiar enough with the genuine, they will quickly detect a counterfeit.

The primary difference in genuine Buyer Agency is in approach and fulfillment of the fiduciary responsibilities. In approach working through a buyer's agent will be without sales pressure. As a Buyer's Broker I don't need to sell you on a particular property, but simply give you the support and information you need to make your own informed choice. Because we are under contract I know that you will eventually purchase through me. Conversely, a traditional agent knows that if they don't sell you a house today you may buy one from another agent tomorrow.
 

The fiduciary responsibilities owed to a client include: Confidentiality, obedience, loyalty, accountability, disclosure, and reasonable care or due diligence.
 

LOYALTY

A fiduciary relationship with a Buyer-client demands undivided loyalty. There can be no loyalty to the Seller the same as a Seller's agent can have no loyalty to the Buyer. However, I must be honest and accurate in my dealings with the Seller. The relationship of an agent to his or her client demands unswerving fidelity. It means that the client's interest must come before all others including the agent's. I must pledge my full allegiance to the Buyer.


OBEDIENCE

As a Buyer's Broker I must obey all lawful instructions of my Buyer-client. Obviously, I cannot break the law or violate the Realtor Code of Ethics, but I must, to the best of my ability, perform all legal and ethical requests of my client as well as doing what I know I should do as a Buyer's Agent.


DISCLOSURE

I am expected to know or find out all pertinent information about the property and other aspects of the transaction. As a Buyer's Broker it is my responsibility to disclose not only defects but deficiencies as well. Such information must be given to my Buyer in a timely manner.


ACCOUNTING

I am responsible for the safeguarding of all money, property, and documents that belong to my Buyer. Again, it is my job to see that their best interest is protected. I must also be accountable for the expenditure of my time on my client's behalf.


CONFIDENTIALITY

It is my legal and ethical duty to safeguard all information that might weaken my Buyer's bargaining power. I will not tell of any urgency on the Buyer's part to move. I will not disclose the Buyer's financial position other than to assure the Seller that the Buyer is capable of the offer as made. As a Buyer's Agent I may even keep the name of my Buyer anonymous if this is the Buyer's desire. The Buyer can tell me how much they would like to offer and how much they are willing to pay, and we may keep our negotiating strategy our own little secret. This is illegal for a traditional Seller's Agent.


REASONABLE CARE AND DILIGENCE

One of the advantages of Buyer Agency is the freedom I have as the Buyer's Agent to approach the purchase as though I were buying for myself. Formerly as a subagent of the Seller I would struggle over wanting to tell a Buyer, "No, don't buy this property," but by law I was prohibited from doing so. Now, as a Buyer's Agent it's a matter of applying my skills, experience, and expertise in a professional manner for the benefit of the Buyer-client. Yes, this places a lot more responsibility and liability on my shoulder as a Buyer's Broker, but it is wonderfully refreshing to work with personal integrity. I want to do the best job possible for my buyers, and for me Exclusive Buyer Representation was the way to go.