I've been asked this a lot since getting this designation, so thought I would answer it here for everyone to see.
First of all, here's a good question to ask: Does your real estate agent really work for you? It may be a surprise to learn that if you have not signed an agreement making an agent your representative, he or she likely works in the best interests of the seller.
So therefore, what is a Buyers Representative? Definition: A Real Estate agent employed to work in the best interests of a buyer in a real estate transaction. The agent's loyalties are with the buyer. It is the agent's duty to share any information about the property or sellers that may help the buyer make decisions regarding the transaction.
Agent status must be disclosed to all parties.
Buyer agency is defined as a principal-agent relationship in which the broker is the agent for a buyer, with fiduciary responsibilities to the buyer. What does that mean? It means that as a buyer's agent I am tied to the buyer, and that all of my loyalties are to the buyer. Buyer agency is a relatively new concept for the real estate world. In the past, agents were Seller's Agents, working for the person who signed a contract employing them to sell real estate. Over time that arrangement resulted in too many misunderstandings. A buyer working with a Seller's Agent often regarded that person as his agent, and felt free to make confidential statements, not understanding they would be passed on to the seller. We can all be thankful that this has now changed.
Complaints were made to real estate commissions, and lawsuits were filed. As a result, many provinces now require us to explain agency status to the buyer. In British Columbia I must make this disclosure at the first significant contact. You will see this when you and I start working together. The first thing we will go over is a Brochure entitled "Working with an Agent" In my office, I talk with a great number of long-distance buyers, so that means I often disclose agency status over the phone, however, the brochure still must be read, understood and signed at the time of our first meeting.
In today's real estate world, you'll find agents who work as Seller's Agents and Buyer's Agents, and in some areas you'll see Dual Agents and Designated Agents.
I know that this might have sounded a bit complicated, but I also hope I've helped to clear up some of what an ABR is, and how I can help you.
