A growing number of brokers represent only the buyer, which is known variously as Exclusive Buyer Brokerage, Exclusive Buyer Representation, Exclusive Buyer Agents, Exclusive Buyer Agencies or Offices, etc.
ARE ALL AGENTS/BROKERS ALIKE? No. There are four types of agency that Brokers practice: Seller agency, Buyer agency, Dual agency, and Transaction agency. Some States have agents and brokers. North Carolina just transitioned into an all broker system they no longer designate anyone as an agent.
Exclusive Buyer Agency is a conscious choice by the agent/broker and the agency to not list property therefore they only practice one form of agency - Buyer Agency. Each state operates under its own regulations - not all states have every type of agency. An agency/office may be a member of the local REALTORS® Association in which case all of its member brokers are also members of the association or an agency may be independent. All members of the REALTORS® Association must be licensed by their respective state as Agents or Brokers, but not all Agents or Brokers are REALTORS®. It is not required for an agent/broker to be a REALTOR®. The REALTOR® designation is a registered trademark.
NOTE: The MLS is owned by the REALTORS® Association and member agencies may belong to the MLS for an additional fee, but not all do. If an agency is not a member, then their agents/brokers do not have direct access to the full MLS. However, most of the listings are available through IRIS (online) and are open to all. In addition, the listing agencies job is to sell their clients/customers property - they share information with brokers bringing willing and able buyers to the table.
Consumer advocates recommend that home buyers take advantage of the benefits offered by exclusive buyer agents. Exclusive buyer agents are specialists in the home buying process - because these agents do not list property, they do not have company listings to try to sell to you first. Instead, all homes are available to home buyers without bias, including For Sale By Owner (FSBO), New Build Construction by homebuilders, and Multiple Listing Service (MLS) homes.
Exclusive Buyer Brokers will better protect the interests of buyers than dual agents, sub-agents, designated agents, or so called split agents. For example, they are more likely to negotiate a lower sale price on a home. The entire foundation of exclusive buyer representation is not having any real or potential conflicts of interest with a buyer/client. When representing a buyer/client who has a home to sell an Exclusive Buyer Broker chooses not to list the property for sale. In other words, they turn down thousands of dollars in full commissions because their clients' best interests are at stake. Remember that while buyers and sellers need not be adversarial in actions and attitude, their personal interests are adverse. Buyers want the lowest price and best terms, and sellers want the highest price and best terms. EBA's don't make wild claims that we'll save a client $100,000 on their next home purchase. We do negotiate for our clients without any chance of real or perceived conflicts of interest. You would not expect less from your doctor, accountant, or attorney, so why potentially settle for less on the biggest financial transaction of your life?
Many real estate agencies in North Carolina are full service companies and offer seller, buyer and dual agency. North Carolina does not have Transaction Brokers.
Transaction Brokers are also known as a facilitators, finders, and statutory agents. Transaction Brokerage is legal in some states - including Florida and Colorado. Services by transaction brokers are substantially reduced from those of other forms of agency.
You should now go to the Disclosure tab on this site and review the North Carolina Disclosure Brochure. It is required reading for all persons working with Real Estate Brokers in the state. It is also very informative. Click here to go there.
NOTE: Until you are sure that an agent is not a seller's agent, you should avoid saying anything you do not want a seller to know. A seller's agent is required to give the seller any information about you (even personal, financial or confidential information) that would help the seller in the sale of his or her property.