By Don DeBat

18-Dec-24 – How does a home buyer find a reputable exclusive buyer’s agent, who may be worth even more than their commission?

First, check out the buyer broker’s education, usually outlined in the professional designations earned, along with years of service and experience.

Is the broker a Certified Real Estate Brokerage Manager (CRB), the highest level of professional achievement in real estate brokerage? Or is the broker an Accredited Buyers Representative (ABR), a Graduate of the Realtor Institute (GRI), or a Certified Real Estate Specialist (CRS)?

“Some successful realty agents boast about their top-ranked annual sales volume,” said Gold Coast buyer broker Sara Benson (left), CRB, ABR, and president of Chicago-based Benson Stanley Realty. “However, these agents can be the most risky for the consumer because they may often have the lowest ethical standards.”

According to Benson, while the seller’s agent may photograph the property, list the home in the MLS, and host open houses, the buyer’s agent is responsible for the lion’s share of home-buying expenses, pre-buying research, and field work, outlined below:

Pre-buying activities. In addition to boundless hours of consultation, buyer brokers secure pre-approval letters, conduct limitless property research and market analysis, and check real estate tax records. Detective work in condominium buying often involves research on a building’s finances and the risk of a potential special assessment, which could cost an unwary buyer $10,000 to $50,000 in the first year of ownership.

Field work outside office. Once the property is targeted, the buyer broker schedules and sets up showings, gases up their car, and takes the buyer on what could be a dozen or more property showings.

Property targeting. When a suitable property is targeted, the buyer broker develops negotiation strategies, sets up and attends inspections, and gathers repair estimates.

Contract stage. The buyer broker also prepares the purchase contract, presents the offer, conducts negotiations, attends the final walk-throughs, and at post-closing does buyer hand-holding, especially if there are additional questions or concerns.

“The sheer worth of a reputable buyer broker’s network is invaluable,” Benson noted. “Agents often have private access to properties not even publicly listed on the internet. Despite all of this, the listing agent dictates their compensation? I applaud the decoupling of commissions.”

A study commissioned by a major telephone carrier for 500 corporate relocations over the period of one year found buyer brokers secured homes at 91 percent of asking price, compared with the 96.5 percent secured by traditional brokers.

“That’s a full 5.5 percent spread – or a buyer savings of $22,000 on a $400,000 home,” said Benson, who noted that the fall-through rate of “For-Sale-By-Owner” contracts – without a buyer broker’s guidance – is a whopping 80 percent.

“For first-time buyers who think their real estate attorney will provide the services and expertise that an experienced buyer’s agent can, they are sadly mistaken,” Benson said. “Attorneys never even set foot on the property. They aren’t familiar enough with the market to provide a competitive market analysis because they don’t have the data.”

Benson says attorneys aren’t familiar with school districts and neighborhood boundaries, and they often select title companies in which they have “affiliated business arrangements” for their own profit.

Finally, Benson believes that the recent National Association of Realtors’ $418 million federal court settlement might just get rid of the wicked “double-dip commission,” the dirtiest little secret in the real estate industry.

No agent can “represent” both parties in a transaction as neither party is being fully represented, Benson noted. “Dual agency should be illegal in every state in the nation – not just eight states. It’s the number one reason agents are sued.”

Savvy buyers who continue to seek “professional buyer broker guidance will get the full and undivided representation they pay for and deserve,” Benson noted. “And buyers should be prepared to sign an agreement to receive the full benefits of an exclusive buyer broker.”