METHOW
VALLEY REALTY, INC. is this area’s only Exclusive Buyer’s Agency.
In
January 2002, Methow Valley Realty, Inc. moved from its downtown Winthrop
location to a private home office in the Edelweiss community.
After 10+ years of being a full service real estate company, we decided
to concentrate our efforts on Buyers. Purchasing
real estate can be a confusing and stressful event.
Our aim is to offer buyers excellent service and the choice of dealing
with an exclusive buyer’s agency.
What is an Exclusive Buyer’s Agency?
An agency which
does not contract with sellers and has no listing agreements and whose agents
work on behalf of Buyers only.
What is the difference between a conventional real estate agent and an Exclusive Buyer’s Agent?
A conventional agent usually concentrates on listings in the MLS (Multiple Listing Service). An Exclusive Buyer’s Agent will show buyers everything on the MLS plus For Sale by Owner properties, and will even investigate properties not on the market.
A conventional agent often has a financial incentive to show his or her companies’ listings because the commission does not have to be shared with another company. This results in a buyer not seeing all property that might fit his/her needs. An Exclusive Buyer’s Agent has no such incentive and will always show every property known that fits the buyer’s criteria.
A conventional agent can give list of inspectors, title companies and other professionals that would be involved in a sale, but rarely goes beyond a neutral position about any of the referrals. An Exclusive Buyer’s Agent can recommend companies and professionals to a buyer.
A conventional agent, especially if he or she is also the listing agent, can give only general information about the seller, state the seller’s asking price, and provide basic data on comparable sales in the general area. An Exclusive Buyer’s Agent will not only provide the seller’s asking price, but any other information that might be known. An Exclusive Buyer’s Agent will also provide detailed market analysis on comparable properties with interpretation of the data to determine a fair market value and offering price for the buyer.
If dealing directly with a listing agent, buyer beware! The listing agent might tell a seller everything they know about the buyer, his financial status and motivation for buying. An Exclusive Buyer’s Agent keeps information about the buyer’s position confidential.
If
dealing with a dual agent, often times he or she becomes ineffective, acting
as a courier to the transaction, but offering little constructive
negotiating advice to the buyer. An Exclusive Buyer’s Agent
not only acts as courier, but will assist the buyer with help and advice
during the negotiating process.
Some
important distinctions to consider.........
THE LISTING AGENT:
These agents have a signed agreement with the seller. It is the listing
agent's responsibility to get the best price for the seller. When you see
a name of an agent on a For Sale sign, it is usually the listing agent. If
a listing agent "represents" a buyer on one of their (or their
company's) properties, they become "dual agents." Can a dual
agent truly get the best price for the seller and the best deal for the buyer??
THE BUYER'S AGENT:
Since The Law of Real Estate Agency was mandated, many agents now advertise that
they are a "Buyer's Agent." This might be true for some
properties, but not for others. In reality, the agent is constantly
changing allegiance depending on the property he is showing the buyer. And
if the agent shows one of his (or his company's) listings, he becomes either a
seller's agent or a "dual agent" as explained above. Imagine
yourself telling your agent everything about your financial situation,
motivation for buying, etc. only to end up wanting to purchase a property that
was listed by your agent. The buyer might end up with no leverage in the
negotiations.
THE EXCLUSIVE BUYER'S AGENT:
This agent does not take listings and represent buyers 100% of the time.
Who Pays the
Exclusive Buyer’s Agent?
If the property being sold is
one that is already on the MLS, the commission is paid by the Seller.
For non-MLS properties, legally, the
Exclusive Buyer’s Agent can be paid by the seller, the buyer or both can share
the fee. It is Methow Valley
Realty’s philosophy that commissions are a marketing expense of the Seller and
this stance has been favorably accepted by Sellers.
Since Methow Valley Realty does not list property we have no advertising
expense, etc. so can offer big discounts over what a Seller would normally pay a
real estate company.
Is There a Conflict of Interest if the Seller Pays the
Commission?
No.
Representation and who pays the commission are separate issues.
Washington Law of Real Estate Agency Section 8 states that payment of
compensation does not necessarily establish an agency relationship.
Are
you saying that if I deal with a “conventional agent” I am sure to be ripped
off?
No.
There are honest and experienced real estate agents in the Methow Valley
that do a good job for their clients. But
even the most experienced agent sometimes struggle with buyers and sellers when
conflicts of representation arise. It
is the intent of this booklet to educate Buyers about real estate services and
their choices.