Buyer's Broker Fallacy

Buyer's Broker Fallacy

Some agents and brokers call themselves "buyer's brokers" or "buyer's agent". They make the argument that they have greater loyalty to buyers because they never represent sellers. Many even have potential buyers sign binding contracts locking them into using the "buyer's broker" to purchase property.

Don't be fooled! Just because an agent sometimes represents sellers doesn't mean that agent has any less loyalty to the buyer, unless the agent is representing both the buyer and seller at the same time (usually a sticky situation for all concerned).

In fact, an agent who represents both buyers and sellers regularly is in a better position to represent either party. In a negotiation representing a buyer, I usually have a pretty good idea of what the seller may be thinking, and I can use that knowledge to the buyer's advantage.

It's the same in real estate as it is in accounting. All things being equal, I would rather use a CPA for my taxes that previously worked for the IRS. He or she has no current loyalty to the IRS, but does have a great deal of insight into their way of thinking.

It's always better for buyers to use a broker who:

  • Won't lock buyers up with a binding contract (making it hard to switch agents).

  • Has experience working both sides of a transaction.

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