When you enter an open house without your agent or broker, you have no representation and have placed yourself in a vulnerable position. The pleasant and seemingly helpful open house host is not there to represent your best interest. They are there to represent the seller's best interest.
PHOENIX (PRWEB) April 07, 2021
Spring brings April showers, May flowers, and, of course, more open houses throughout the United States.
The home-buying advocates from the nonprofit National Association of Exclusive Buyer Agents (NAEBA) encourage prospective homebuyers to retain dedicated, loyal representation before venturing out to open houses.
"Every buyer deserves an agent working exclusively for them on any property," said Lynn Spiegel, an exclusive buyer agent with Buyer's Edge, a real estate company serving the Greater Washington, DC area. "Should buyers visit an open house unrepresented, it is very likely they will wind up with a dual agency situation."
Dual agency occurs when one real estate agent or real estate brokerage represents both the home buyer and home seller in the same transaction. This arrangement is beneficial to the agent and real estate brokerage because they likely will receive a percentage of both sides of the sales prices.
'When you enter an open house without your agent or broker, you have no representation and have placed yourself in a vulnerable position," Ken Reid, the owner of Buyers Brokers of Arizona, said. "The pleasant and seemingly helpful open house host is not there to represent your best interest. They are there to represent the seller's best interest. They are there to sell you their client's home and collect information that will put their client in a better position to negotiate should you decide to make an offer on the home."
NAEBA members warn that casual conversation with a seller's agent at an open house may result in homebuyers revealing information that will be detrimental to their negotiating position.
"Agents like to talk and ask lots of questions to the people coming into the home," said Kad Mendoza, owner at exclusive buyer brokerage Mendoza Realty, which serves the Greater Atlanta area. "They might seem friendly and harmless, but their job is to sell the home at the best terms for their client. As the buyers let their guard down and speak freely, there is a good chance that they will divulge information that can negatively affect future negotiations."
A buyer agent is an essential set of other eyes looking at a home with their buyer clients' best interests in mind. Someone needs to see past the fancy kitchen and lush landscaping.
"Homebuyers often don't know what they should be looking at beyond layout, design, and decor," said exclusive buyer broker James Deskins, owner of The HomeBuyer's Advocate in Columbus, OH. "We are looking for the issues that will cost the buyer a bundle after moving in or that will potentially impact resale. Our loyalty is to the homebuyer, not the seller. We will provide a straightforward assessment of the property."
If possible, experienced homebuyer representatives suggest viewing a home privately with your buyer agent.
"Having other people in the home makes it very difficult to talk openly about the good points and bad points of a home," said Jon Boyd, owner of The Home Buyer's Agent in Ann Arbor, MI. "You shouldn't be saying nice things where the listing agent or other buyer groups might hear you, and at the same time, you can't be brutally honest where someone might hear you and take offense."
In many areas across the country, the spring 2021 housing market is red hot. Real estate inventory in many places is near or at historic lows, causing competition for homes. That competition has lead to rising home prices. Home-buying consumers definitely need guidance navigating this complex market for home buyers.
About NAEBA: Members of the National Association of Exclusive Buyer Agents (NAEBA) believe there is a better way of working in the real estate industry. NAEBA members voluntarily dedicate their careers to exclusively representing home buyers, providing fiduciary-level duties to protect home-buying consumers.
Exclusive buyer agents are 100 percent loyal to home buyers 100 percent of the time and work at real estate brokerages that do not ever represent home sellers. NAEBA members are true buyer agents.
NAEBA members do not accept listings, advertise properties for sale, or represent home sellers; therefore, its members avoid the conflicts of interest common at traditional real estate companies, which attempt to represent both buyers and sellers in the same transaction.
Consumer advocates created NAEBA in the mid-1990s to fill the void faced by homebuyers and start a professional association that would provide home buyers a higher standard of ethics.
NAEBA also matches home-buying consumers with its members around the country for no additional cost.