Newly revised for 2010, HUD's latest publication related to buying a home is titled, "Shopping for Your Home Loan: HUD's Settlement Cost Booklet." It is a must-read for anyone who will be buying a home in 2010 (or beyond).
In spite of the title, the booklet doesn't just contain information on how to shop for a home loan using new forms and an explanation of the settlement costs involved in a real estate transaction. The guide also contains valuable information on a variety of other topics related to purchasing a home. (It's a whopping 4 Megabyte download!)
Massive reforms in the real estate and mortgage industries took place in 2009. Many of these major changes take effect on January 1, 2010. There are a lot of changes that affect home buyers, and this guide will make it apparent that the way to buy a home has changed.
On page 6, it explains the role of a real estate agent or broker, making clear that "although... agents and brokers provide helpful advice, they may legally be representing the interests of the seller and not yours." (Emphasis Added)
It goes on to say, "It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an 'exclusive buyer’s agent', who will be working for you." (Emphasis is included in the guide itself, not added)
The National Association of Exclusive Buyer Agents (NAEBA) has issued a press release related to this news. To read it, click here.
To download the new guide, simply click on the image of the booklet above, or click here.
Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and sell you. They can represent you in purchasing any home. They are specialists at representing Buyers ONLY on the Buyer's side of the transaction. Exclusive Buyer's Agents work to get BUYERS the Best Price and Terms when they Buy a home...
If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A!
Call us at (801) 969-8989 or contact us via the link on this page.
©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" TM - Salt Lake City, UT
Exclusive Buyers Agents (EBA) - All Rights Reserved
Finally...
Isn't this what a buyer's rep is about? WE are representing OUR BUYER.
But anyone buying a HUD foreclosed home does have to negiotate mindfields with no variance. They (HUD) control everything and have no ability to use common sense to make any changes because their rules are in black and white and cannot be changed.
Hey Benjamin, that was a good idea to post this on AR, I downloaded the pamphlet myself to read, thanks!
Faye - I think HUD's point was that consumers need to realize that when they talk to a listing agent or broker, they are talking to a representative of the Seller. That agent or broker is working in the Sellers best interest. Buyers can hire an agent to represent their best interests as a Buyer, but many Buyers do not know that, or know how to do that.
Cheryl - Glad I could help! It really is a good idea for agents and brokers to study this guide if you haven't taken the courses on the reforms yet. Things are extremely different and it surprises me how many agents seem to be unaware that the rules have changed. Hopefully together we can make the public aware.
Hi Benjamin, In regards to your statement, "Exclusive Buyer's Agents do not list homes for sale and never represent Sellers. They have no "inventory" to try and sell you." In GA we have an Exclusive Buyer Brokerage Agreement. I do list homes for sale but also have an Exclusive Buyer Brokerage Agreement with the buyers I represent. Thank you for the link to the Buyers' Guidebook. I wish you a very successful 2010!
This is interesting, but I don't think it will help much in Florida. The entire state pretty much has all agents working as Transaction Brokers... the replacement for Dual Agency. Most brokerages don't even offer Single Agency anymore. We have a form that will allow us to transition to a different type of representation, but if we're selling a listing from within our own brokerage, we're required by law to work in a Transaction Brokerage capacity.
Very cool indeed and I really like your marketing...finally a realtor on the buyers side!! Awesome!
Jen - What you bring up is another interesting topic.
Here in Utah an agent can convince a Buyer to agree to Dual Agency. Well, guess what the form is called? You got it! Exclusive Buyer Agency Agreement. In other words, to all you consumers: Just because an agent has you sign an "Exclusive Buyer Agency Agreement" does not make that agent an Exclusive Buyer's Agent.
Unfortunately, a number of states call their Buyer Agency Agreement form by this or some other similar title. In reality, it would be less confusing to consumers if the form were titled more appropriately: Exclusive Right to Buy.
Wendy - Thank you!
Wishing you all much success in 2010!
Hi Benjamin, Yes, there is a difference between an Exclusive Buyer Agency Agreement and an Exclusive Buyer Agent. Our Exclusive Buyer Agency Agreement discusses Dual Agency and a Buyer does not need to consent to it. In our Purchase and Sale Agreements in GA, there is even a section that discusses agency and who is representing which party. It gets covered repeatedly. By the way, I have a friend whose husband just transferred to Salt Lake City a couple of weeks ago.
I am sorry, Ben.
TX requires us to give the Information about Brokerage Service and explain what the different types of agency mean to the buyer. It should be our standard practice to explain to a buyer when you show him one of your own listings that you are representing the seller. TX does allow dual agency so IF the buyer wants to use you as his agent then we sign the buyers rep agreement and use an intermediary agreement which explains that the same brokerage is handling both sides of the transaction. Our buyers HAVE to agree to intermediary or they have to find a buyers agent from another brokerage. Some offices require that another agent from the same office be assigned the buyer and some offices allow the listing agent to act for both parties with the proper agreements signed. My office allows us to act in a dual agency status so we are careful that the buyer understands what the different agencies mean.
I guess each state handles it differently so we all react differently to how we read the info.
Faye - An exclusive buyer agent never shows a buyer one of their own listings because an exclusive buyer agent has no listings to show.
This is exactly what is being pointed out here: If a Buyer wants an agent who will represent their best interests at all times, regardless of what home they want to buy, they should consider hiring an exclusive buyer's agent.
An exclusive buyers agent is one who works for a company that takes no listings and never has a seller as a client. Therefore, they will never ask their client to agree to limited or dual agency, or treat them as a customer. There are at least 7 such companies in Texas.
Ben,
I agree and also agents who are really well round experienced, I'm a hud certified agent with experience in these kind of real estate transactions and I've seen how new agents screw up transactions because they don't have a clue how the bids work.
Great blog !