Exclusive buyer agent
Encyclopedia
An exclusive buyer agent (EBA) is a U.S.
real estate
firm (or an agent or broker who works in such a company) that represents only buyers of real estate. EBA firms never take listings and, therefore, never represent the seller in a real estate transaction.
Exclusive buyer agent firms have chosen this business model in order eliminate the conflict of interest
that exists when one firm attempts to represent both buyer and seller in the same transaction.
in general in U.S. states, firms came into being and a national trade association, the National Association of Exclusive Buyer Agents (NAEBA), was formed. According to NAEBA, EBA firms offer service to buyers in almost all 50 states.
Real estate firms in the United States can represent both buyers and sellers in the same transaction, and when representing both, derive profit from both the seller and buyer side of the transaction. While some states have, at the insistence of Realtor trade groups, created various forms of dual agency to allow one company and in some cases a single agent to represent both sides, other states have continued to hold such practices as illegal. In the opinion of EBAs, it is not possible to faithfully represent clients with opposing interests simultaneously.
s. Then, they assist the buyer with evaluation and negotiation and advocate in the buyer's best interests without restriction.
EBA firms amount to less than 1/2 of 1 percent of all real estate firms in the US. The EBA business model of unconflicted buyer representation eliminates the possibility of the buyer being confronted with the conflicts of interest which may be associated with the Dual, Limited or Designated Agency business models.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
firm (or an agent or broker who works in such a company) that represents only buyers of real estate. EBA firms never take listings and, therefore, never represent the seller in a real estate transaction.
Exclusive buyer agent firms have chosen this business model in order eliminate the conflict of interest
Conflict of interest
A conflict of interest occurs when an individual or organization is involved in multiple interests, one of which could possibly corrupt the motivation for an act in the other....
that exists when one firm attempts to represent both buyer and seller in the same transaction.
History
The EBA movement started in the late 1980s and, by the early 1990s as with the rise of buyer agencyBuyer agent
In the real estate business, a buyer agent refers to an agent or broker that represents the buyer in a transaction. This can include buyer agents from traditional listing firms, as well as buyer agents from EBA firms, which represent the interests of the buyer in all transactions.Also See EBA, or...
in general in U.S. states, firms came into being and a national trade association, the National Association of Exclusive Buyer Agents (NAEBA), was formed. According to NAEBA, EBA firms offer service to buyers in almost all 50 states.
Real estate firms in the United States can represent both buyers and sellers in the same transaction, and when representing both, derive profit from both the seller and buyer side of the transaction. While some states have, at the insistence of Realtor trade groups, created various forms of dual agency to allow one company and in some cases a single agent to represent both sides, other states have continued to hold such practices as illegal. In the opinion of EBAs, it is not possible to faithfully represent clients with opposing interests simultaneously.
Method of exclusive service
The service structure for EBA real estate practitioners is to show buyers all possible listings from other cooperating brokers as well as all other sources, such as for sale by ownerFor sale by owner
For Sale By Owner, or FSBO , is the process of selling real estate without the representation of a real estate broker or real estate agent...
s. Then, they assist the buyer with evaluation and negotiation and advocate in the buyer's best interests without restriction.
EBA firms amount to less than 1/2 of 1 percent of all real estate firms in the US. The EBA business model of unconflicted buyer representation eliminates the possibility of the buyer being confronted with the conflicts of interest which may be associated with the Dual, Limited or Designated Agency business models.