The differences between an exclusive buyer agent and a buyer agent have more to do with their business models, than the level of service they provide. An exclusive buyer agent only represents home buyers, not sellers. A buyer agent represents buyers, but may also represent sellers as their listing agent.
Since I work mostly with buyers I thought about becoming an exclusive buyer agent. However, some of my clients are taking advantage of this real estate market to move up to more expensive homes and want me to help them sell their current home. Former clients and other home owners who aren’t looking to move up also ask me to sell their homes.
To ensure that I provide the same level of service as an exclusive buyer agent, I have every client I work with (buyers and sellers) agree that I will not act as a dual agent. A dual agent is a Realtor who represents both the buyer and seller for a specific home sale. While it is legal in Illinois if both the buyer and seller agree in writing, I don’t think it is in the best interests of either.
I would rather provide my clients full service without any conflict of interest than try to earn both sides of a commission. When I represent you, I represent “ONLY YOU”! 
ABOUT THE AUTHOR
Fran Bailey shows, previews and tracks downtown Chicago homes for sale giving her the insights needed to help her clients negotiate the best price and terms. Fran has been quoted in numerous Chicago and national publications. To schedule showings of listings regardless of broker or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More
Fran Bailey, Realtor
{ 3 comments… read them below or add one }
Hi Fran – I respectfully disagree…. As specialists rather than generalists – we provide a higher level of service (via many means that traditional agents are not aware of.)
If you are attempting to sell so many homes – the fact is – when you have a buyer – you may end up “selling” them on one of your own listings – or perhaps your company’s listings (to help a colleague.) Thus – you cannot be totally impartial.
Even if you don’t act as a dual agent – if your buyer became interested in one of your own listings – you would have to “designate” another agent in your office to handle your buyer client – meanwhile – shifting over to represent your seller client. Of course – you then know everything about your former buyer client’s situation – and though you are supposed to tell your seller client about the buyer’s situation…..it can have an influence on what you recommend to the seller during negotiations – because let’s face it – you are on the seller’s side.
Of course – most buyers aren’t aware that such conflicts can arise – when using so-called “buyer agents” who work for companies that list property for sale.
If they want a true Exclusive Buyer Agent – they need to find one on the web or via http://www.naeba.org
That way – they get the best possible representation – and a specialist who is always on their side – rather than a generalist.
Many EBA’s also align their financial interests with the buyer’s financial interests — versus a traditional buyer agent who makes more money when their buyer’s price goes up.
Typo above — should say –
…and though you are NOT supposed to tell your seller client about your former buyer client’s situation…it can have an influence on what you recommend to the seller during negotiations – because let’s face it – you are on the seller’s side.
Hi Rick,
I disagree that an exclusive buyer agent provides a higher level of service than a buyer agent. In fact, I will argue that I provide a higher level of service than an exclusive buyer agent.
Part of the service a buyer agent provides (and a very important service) is helping the buyer negotiate the best deal. By having experience on “the other side of the table”, I can better help my buyers negotiate.
Your repeated reference that I’m “on the seller’s side” is a throwback to olden days in Illinois when buyer agents were sub-agents of the sellers. In 1995 Illinois changed its law governing real estate agency. The legislature repealed the law of sub-agency and replaced it with one based on designated agency. I’m sure you and I are both in agreement that this was in the best interests not only for buyers, but the real estate industry in Illinois.
As a buyer’s designated agent, I have 5 fiduciary duties: confidentiality, disclosure, loyalty, obedience, accountability, skill and care. Not only is this in my clients’ best interests, it is in my best interest since the better the service I provide, the more likely they will recommend me to their friends and family. This significantly lowers my marketing costs.
Financially, I have far more to gain by providing the best service possible for my clients than letting the sellers get a higher price and pocketing a few extra dollars in commissions or helping a colleague sell one of their listings.
I serve a large portion of the Chicago metro area because my clients asked me to. As a result, I have not had a situation arise where I had a listing that one of my buyers at the time might be interested in. I doubt that I ever will. However, if this unlikely situation did arise, I would have no idea how much those buyers were willing to pay for my listing since I wouldn’t be the agent who showed it to them and helped them evaluate the asking price.
According to the NAEBA (National Association of Exclusive Buyer Agents) which you referenced in your comment, their list of reasons why a buyer should use an exclusive buyer agent doesn’t differ in the slightest from why a buyer should use a buyer agent with no dual agency which is how I insist on working on with buyers.
The merits of exclusive buyer agents vs. buyer agents is an issue where you and I will have to agree to disagree. Fortunately for the buyers, we can agree that they deserve our best efforts.