Exclusive Buyer Broker FAQs
• Will using an Exclusive Buyer’s Broker cost me more money?
No. Our fee is built into the price of the listed property you’ll be buying, as is the traditional seller’s broker’
s fee, unless you choose otherwise. At the closing, we are paid from the proceeds of the transaction.
In fact, a recent study shows that you have a better chance of paying less for your new home with me
and my firm than you do with a traditional agent or seller’s agent. The U. S. Sprint Corp. made a study of
their employees who relocated and found that 232 of them who used Exclusive Buyer’s Brokers paid an
average of 91% of the Asking Price, versus employees who used seller’s agents—they paid an average
of 96% of the Asking Price. That difference of five percent could save you as much as $25,000 more on
a home that costs $500,000, for example, when you use us.*
(*New York Times, “Talking: Agents; Buyers, Brokers of Their Own,” http://www.nytimes.com, Real Estate
Section, page 1: February 1, 2009.)
• If you are paid a percentage of the price, isn’t it in your interest to
keep the final price high?
Think of it from where I stand as a buyer’s broker: if I were to do that, for every $1,000 of higher price the
firm would get $15 and I or any agent of mine would get $15; for $10,000 it would be $150 for me or my
agent and $150 for the firm.
I am an Exclusive Buyer’s Broker with a legal fiduciary duty to operate in your best interests. I like being
an Exclusive Buyer’s Broker; that’s why I’ve chosen to deal only with buyers. Why would I risk my
reputation and my career, doing something I love doing, for $15, $150 or $300? Your goodwill and word
of mouth advertising will be worth much more than this, not to mention our legal obligation to represent
our client's best interest
You also forget that, in life, there are other motivations. For me, in particular, there is nothing I like
better than nailing down a great price on a home for my buyer client. The reward is not only in my
commission, but just as much in the enjoyment of my ability to negotiate that excellent price for you. Don’
t underestimate that as a motivating factor.
• What properties can you show us if you don’t list properties?
As a licensed real estate broker, I can show you any properties listed for sale in New York State. I
generally, with a few exceptions, limit myself to those in Manhattan and Brooklyn. When you give me or
an agent of mine a breakdown and description of your requirements -- type, price, area and so forth --
we will gather a list for you of the best homes in that area that meet those requirements, including listed
properties from all the different sellers’ broker companies and from for-sale-by-owner homes. When the
situation calls for it, we will even approach owners whose homes are not officially on the market.
Yet, non-exclusive buyer’s agents (those from seller’s broker agencies) most often receive higher
commissions for selling their own companies’ listings. This may limit the scope of the homes you are
shown. For-sale-by-owner homes are also included in the group of homes we show you, whereas such
homes are commonly under-represented in showings by many traditional type agents.
• Why don’t you list properties for sale?
For the same reason that attorneys don’t represent clients on both sides of a litigation: conflict of interest.
With my firm, buyers receive undivided company loyalty, professional due diligence, full disclosure and
advocacy on any home 100% of the time without conflicts or limitation of duties.
Brokerages who list properties for sale must cater to the interests of the owners who own them. They
sign exclusive agreements with those owners to sell their homes. Legally, one hundred percent of their
loyalty is to the owner. Never underestimate that loyalty, no matter what a nice personality the other agent
has or how trustworthy they seem to you as a buyer, because that loyalty is required by law.
Dual Agency and Co-broking. Immediately, a conflict of interest is set up for the broker or agent of the
seller if they also want to act as the broker or agent for a potential buyer. By law, the agent for the owner
can only be a “dual agent” for you, and that is only if both you and the owner agree. That means that they
don’t help either of you—don’t find out conditions in the area or in the home that the owner hasn’t
divulged that could influence you against buying, don’t give you a rundown on what similar properties
are selling for in the area, and so forth.
Thus, dual agency is like having no agent at all. But it is worse for the buyer, because some of the
information about you that the seller can use in the negotiations may have already been divulged to the
owner by their agent before their agent became a dual agent for both.
In New York City, when an exclusive seller’s agent sells a home to the “customer” (buyer) of another
traditional-type agent, sometimes called a non-exclusive buyer’s agent, that other agent becomes a co-
broker for the seller by the terms of the exclusive agreement signed with the owner by the seller’s agent.
That is, they cannot act as your exclusive buyer’s agent. They must negotiate for the highest price and
always in the seller’s interest.
Ask a non-exclusive buyer’s agent (one in a seller’s broker firm) if they can offer or guarantee to
provide undivided buyer loyalty and fiduciary representation 100% of the time. If they tell you they can, ask
them to put it in writing—they can't. We do.
• If I choose not to have representation and just go directly to the
seller's listing company, won't I save money?
Absolutely not. The fee that we would have received, which you are paying anyway as part of the
purchase price, will just go to the listing company. They will get a full commission (instead of only a
partial one) and you will only get dual agency or no representation at all.*
Thus, the smart way to buy a home is with me and my firm, exclusive buyer’s broker, Stock Properties,
because, as your agent solely, we can advise you on this most important investment and negotiate a
good price, unhampered by loyalty to the seller.
• I’d prefer to deal with the Seller’s Agent. They know the Seller’s
motivation and if the house is really ‘hot’ and in demand, I’ll be more likely
to get it—because the Seller’s Agent will get a bigger commission.
First of all, the Seller’s Agent is legally required to get the best deal possible for the owner, and you
should not assume that agent, no matter how nice, is going to ‘award’ you the home. Not if you aren’t
the best deal for the owner. This is a serious matter and they can be sued for not getting the best deal
for the owner.
Thus, you would be better served by having your own exclusive buyer's broker who has experience in
structuring and making a bid, which can often be a tricky and complex art. That will get you the home of
your dreams more reliably
The second point is that, since we are in a buyers’ market right now, your choices are large and your
biggest job will be sorting out the best bargain in an increasing inventory of available homes. That is
prime territory for the services of me and my firm, Stock Properties, because as your own broker, we will
be able to advise you in the fullest way. We are legally required to reveal to the buyer everything we know
about: the willingness of the seller to accept a lower price, any facts relating to the urgency of the
seller's need to dispose of the property, any facts affecting the value of the property, and any information
that would affect the buyer's ability to obtain the property at the lowest price and on the most favorable
terms. Seller’s agents and their colleagues who also act as your non-exclusive agent can't do this,
because they work for the seller.
You are paying the commission anyway, since it’s built into the price you pay. Which is your choice? Do
you want no help from the Seller’s Agent, or a lot of custom advice from your very own Stock Properties
Buyer’s Broker, just like the seller has a Seller’s Agent? In making your bid and negotiating a purchase,
think of which you would rather have to help you. It’s your choice.
• I must sell my home first. Can you help me do that?
I can refer you to some very good Seller’s Brokers, which I am happy to do. I cannot, though, act as your
Selling Broker. Think of it: using two brokers, one to sell your home and another to help you buy another
home happens all the time when people relocate. Why should this not happen also in the same city or
• Can you help me to find a lender? What about an attorney?
There are several professionals in the various aspects of residential real estate whom we work with and
have found to be among the best we know. That includes mortgage brokers and lawyers. We will be
happy to refer you to them. That is part of our service.
EXCLUSIVE BUYER AGENT PROGRAM
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