Resources & Guides

What is an Exclusive Buyer's Agent?

January 31, 2024
Resources & Guides

What is an Exclusive Buyer's Agent?

January 31, 2024
Resources & Guides

What is an Exclusive Buyer's Agent?

January 31, 2024
Resources & Guides

What is an Exclusive Buyer's Agent?

January 31, 2024

Embarking on the most important financial decision of your life demands absolute confidence in your chosen agent's loyalty.

But who is your real estate agent working for?

Let's get into the concept of "caveat emptor," the Latin phrase urging caution – particularly relevant in real estate, where buyers assume the property's as-is status and inherent risks.

As of now, 21 states don't legally require sellers to disclose property information. The onus falls on the buyer to meticulously assess the property's condition, with sellers explicitly disclaiming responsibility. 

"In 21 states, sellers do not have to provide information about the property to buyers." 

Unfortunately, many homebuyers overlook the crucial role of a dedicated real estate professional aligned with their interests.

Enter the distinction between buyer agents and exclusive buyer agents. 

Born out of the need for unbiased representation, exclusive buyer agents emerged in the '90s. Traditional brokerages adapted by introducing the term "buyer agent," yet these individuals still ultimately serve brokerages listing properties for sale, introducing a potential conflict of interest.

What sets exclusive buyer agents apart is their unwavering commitment to representing only one side – the buyer. Unlike their counterparts in traditional brokerages, exclusive buyer agents prioritize the buyer's needs without the selling mindset. This commitment ensures 100% loyalty, as there are no in-house listings to push or bonuses tied to selling listings.

At HomeBuyer Brokerage, our focus is entirely on the buyer, offering services ranging from property evaluation and comprehensive information disclosures to skilled contract negotiation. Since we have no interest in ‘selling’ a property, we have no problem sharing our professional opinion of the condition of a home. 

In fact, we look for what is wrong before we talk about what is right with a home. Importantly, at HomeBuyer Brokerage, we maintain transparency by abstaining from additional administrative fees.

A Class Action Lawsuit Could Change How Buyer Agents and Exclusive Buyer Agents Are Paid

In an October 2023 class-action lawsuit, a federal jury in Missouri determined that the National Association of Realtors and multiple real estate brokerages engaged in a conspiracy to manipulate prices. This was achieved by establishing a standard wherein sellers pay the listing agent a commission—typically ranging from 5 to 6 percent of the sale price—that is then shared with the buyer's agent.

The verdict, holding the defendants accountable for approximately $1.8 billion in damages, with the potential for this sum to exceed $5 billion, could reshape the traditional structure of listing and buying agents' commissions.

As exclusive buyer agents and brokers, we commit to keeping buyer clients informed on all issues related to the buying agents' commissions.

Our take on the lawsuit and the cooperative commission

A home buyer has a buyer brokerage agreement with their exclusive buyer’s agent. The agreement details the length of time and commission paid to the agent. 

The home buyer finances the transaction. A seller and listing agent determine the cooperative commission listed on the MLS but it is the buyer who brings the funds to finance the home sale. 

If the cooperative commission is no longer offered in the listing agreement, home buyers would pay out of pocket for representation.

If home buyers could not or would not pay for representation, they may choose to purchase a home with the listing agent. 

If home buyers choose the listing agent, they agree to dual agency. ( the agent cannot offer advice or fiduciary care for either buyer or seller) 

No one knows what the real estate industry will look like after the dust settles from the Missouri lawsuit and other lawsuits currently in the works. 

HomeBuyer Brokerage remains committed to exclusive buyer representation. We will continue to educate and advocate for buyers in every real estate transaction. 


Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
You may download the PDF by clicking here.

We will not share your information with anyone....

First Name*
Last Name*
Email*
Click here to view content
Oops! Something went wrong while submitting the form.

Thank you for requesting more information...

We value and protect your privacy and will never share your contact information with anyone else.

How can we help?

If the exclusive buyer agents at HomeBuyer Brokerage can assist you in any way, please don't hesitate to contact us at info@homebuyerbrokerage.com.

No items found.

What is an Exclusive Buyer's Agent?

What is an Exclusive Buyer's Agent?
What is an Exclusive Buyer's Agent?
What is an Exclusive Buyer's Agent?
What is an Exclusive Buyer's Agent?

Embarking on the most important financial decision of your life demands absolute confidence in your chosen agent's loyalty.

But who is your real estate agent working for?

Let's get into the concept of "caveat emptor," the Latin phrase urging caution – particularly relevant in real estate, where buyers assume the property's as-is status and inherent risks.

As of now, 21 states don't legally require sellers to disclose property information. The onus falls on the buyer to meticulously assess the property's condition, with sellers explicitly disclaiming responsibility. 

"In 21 states, sellers do not have to provide information about the property to buyers." 

Unfortunately, many homebuyers overlook the crucial role of a dedicated real estate professional aligned with their interests.

Enter the distinction between buyer agents and exclusive buyer agents. 

Born out of the need for unbiased representation, exclusive buyer agents emerged in the '90s. Traditional brokerages adapted by introducing the term "buyer agent," yet these individuals still ultimately serve brokerages listing properties for sale, introducing a potential conflict of interest.

What sets exclusive buyer agents apart is their unwavering commitment to representing only one side – the buyer. Unlike their counterparts in traditional brokerages, exclusive buyer agents prioritize the buyer's needs without the selling mindset. This commitment ensures 100% loyalty, as there are no in-house listings to push or bonuses tied to selling listings.

At HomeBuyer Brokerage, our focus is entirely on the buyer, offering services ranging from property evaluation and comprehensive information disclosures to skilled contract negotiation. Since we have no interest in ‘selling’ a property, we have no problem sharing our professional opinion of the condition of a home. 

In fact, we look for what is wrong before we talk about what is right with a home. Importantly, at HomeBuyer Brokerage, we maintain transparency by abstaining from additional administrative fees.

A Class Action Lawsuit Could Change How Buyer Agents and Exclusive Buyer Agents Are Paid

In an October 2023 class-action lawsuit, a federal jury in Missouri determined that the National Association of Realtors and multiple real estate brokerages engaged in a conspiracy to manipulate prices. This was achieved by establishing a standard wherein sellers pay the listing agent a commission—typically ranging from 5 to 6 percent of the sale price—that is then shared with the buyer's agent.

The verdict, holding the defendants accountable for approximately $1.8 billion in damages, with the potential for this sum to exceed $5 billion, could reshape the traditional structure of listing and buying agents' commissions.

As exclusive buyer agents and brokers, we commit to keeping buyer clients informed on all issues related to the buying agents' commissions.

Our take on the lawsuit and the cooperative commission

A home buyer has a buyer brokerage agreement with their exclusive buyer’s agent. The agreement details the length of time and commission paid to the agent. 

The home buyer finances the transaction. A seller and listing agent determine the cooperative commission listed on the MLS but it is the buyer who brings the funds to finance the home sale. 

If the cooperative commission is no longer offered in the listing agreement, home buyers would pay out of pocket for representation.

If home buyers could not or would not pay for representation, they may choose to purchase a home with the listing agent. 

If home buyers choose the listing agent, they agree to dual agency. ( the agent cannot offer advice or fiduciary care for either buyer or seller) 

No one knows what the real estate industry will look like after the dust settles from the Missouri lawsuit and other lawsuits currently in the works. 

HomeBuyer Brokerage remains committed to exclusive buyer representation. We will continue to educate and advocate for buyers in every real estate transaction. 


You may download the PDF by clicking here.
Request More Information

We will not share your information with anyone....

First Name*
Last Name*
Email*
Click here to view content
Oops! Something went wrong while submitting the form.

Thank you for requesting more information...

We value and protect your privacy and will never share your contact information with anyone else.

You may also download the PDF here.

How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.

No items found.
© 2023 HomeBuyer Brokerage. All rights reserved.