10 Questions to Ask Any Buyer's Agent

If an agent offers to serve as your Buyer's Agent, at a minimum, you should ask the following questions before engaging the agent's services. And to protect yourself from any possible misunderstandings, make sure that your agreement is in writing. 

1. Which form of buyer agency do you practice? (see buyer's agent categories below)

2. How much experience do you have as a buyer's agent (how long have you been practicing buyer agency)?
3. Have you had any training in Buyer Agency/Representation? Explain.
4. What credentials/certifications in Buyer Agency have you earned? (ABR, CBR, etc.)
5. What fiduciary services will you provide?
6. What protective services do you provide, i.e., Due Diligence? Describe.
7. Do you and/or does your office take listings? If so, how will you handle situations involving your own listings or other in-house listings?
8. How is your office set up (to protect the confidentiality of my information)? Describe.
9. What security features does your office have in place to protect a client's privacy? (Fax machines, telephone conversations, locks on desks and/or file cabinets, etc.)
10. How do you get paid?

BUYER BE AWARE! Since the introduction of the new agency law in 2005, many real estate licensees will now present themselves as 'Buyer's Agents'. 

Under the new agency law, listing agents now must fully explain "Sub-Agency" to the seller; not surprisingly, once the seller understands the scope of the risks they will assume with sub-agency (it's called vicarious liability), they tend to reject it. So, being left with limited options, many former seller's sub-agents must now, by default, serve in a new capacity, i.e., either as a Buyer's Agent or as a Facilitator. With the advent of this limited choice, most of these agents will now be serving in the capacity of a so called Buyer's Agent (a.k.a. 'Buyer's-Agents-by-Default' or 'B.A.D.' for short), yet they have very little to no experience and/or little or no training in Buyer Agency. This generally results in such agents rendering a dis-service to the buyer-client.

With this influx of new so called 'Buyer's Agents', you should first qualify any prospective Buyer's Agent by asking questions as to the agent's background, experience and training in buyer representation. As well, before you select a buyer's agent, you should also be aware that there are three categories of Buyer's Agent, described as follows:

Non-exclusive Buyer's Agent - an agent who represents a buyer and provides fiduciary services to the buyer-client. However, because a non-exclusive buyer's agent is affiliated with an office that accepts listings and/or the agent also personally takes listings (act as a Seller's Agent), there exists a potential conflict of interest. As such, a non-exclusive buyer's agent may not be able to fully represent a buyer-client throughout the entire homebuying experience, with the initial established agency relationship potentially morphing into a designated agency relationship or even worse yet, a disclosed dual agency relationship.  

Designated Buyer's Agent - first introduced in July 2005, a buyer's agent who has been appointed or designated to represent the buyer-client; such a relationship flows from a situation wherein the buyer-client has an interest in purchasing an in-house (office) listing. By designating a separate Buyer's Agent and a separate Seller's Agent, the brokerage is able to represent both parties independently in the same real estate transaction. However, since the office has a vested interest in the listing, the services provided by the designated buyer agent may not be totally objective and/or impartial.

Exclusive Buyer's Agent - a buyer's agent who commits to representing buyers only and always, who never takes listings and, by virtue of this clientele exclusivity, is able to guarantee full fiduciaries to the buyer-client throughout the entire homebuying experience. Exclusive Buyer Agency affords the buyer-client the highest level of service and protections available. There is never any conflict of interest, either real or perceived, in the client/agent relationship.

Related topics: Buyer Agency | The Many Benefits in Using an Exclusive Buyer Agent (EBA) 

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