Mary’s listing agent did a wonderful job selling Mary’s home. In the process, Mary and the agent became friends, meeting occasionally for lunch or a game of tennis.

Two years later, when Mary was in the market to buy a home, the first person she thought to call was her friend, the listing agent. After a few weeks of house hunting, the two found the house of Mary’s dreams.

“I’ll offer $250,000, but I’ll go $300,000, if necessary, “Mary confided to the agent.

Little did she know the agent was required  by law to pass along her top price to the seller. Because her agent, the friend Mary thought was working on her behalf, was legally bound to represent the interests of the seller, not the buyer.

Marys misunderstanding of the situation is typical of many potential buyers. A study by the Federal Trade Commission found that 82 percent of buyers surveyed believed their conversation with an agent was confidential.That same survey found that 57 percent of buyers responding thought the agent represented them .

The fact is, buyers are  never represented in typical transactions.

The Buyer Broker Option

Fortunately , buyers do have a choice. They can elect to work with a “buyer broker,” an agent who will exclusively represent the buyer’s interest and is  legally bound  to   negotiate the lowest price  and most favorable terms for the buyer.

The concept of buyer brokerage isn’t new, but its time has come. Starting in California and spreading nationwide, the idea is gaining acceptance in the twenty first century and buyers are looking to maximize their dollars during lean economic times.

As disclosure laws become the rule rather than the exception, the twenty first centuary has signaled fundamental changes in the way we buy and sell real estate. Many real estate experts believe the future of their professsion lies in separate representation for  buyers and sellers, just as both parties are represented in a court  of law.

The issue of equal representation is more involved than who represents whom. Its a matter of loyalty and money.

Consider Mary in the example. Had she been working with a buyer broker, her top price would have been  kept confidential. Her broker would have been required to point out all the defects in the property, and he or she would not have been bound to a particular company’s listings, giving Mary a wider selection of homes to consider. While buyer brokers have access to multiple listing services (MLS), most don’t take property listings themselves, eliminating any possible conflict of interest.

A buyer  broker would not even  have been required to disclose Mary’s identity to the seller. Anonymity can be decided advantage for some buyers, especially corporations or high-profile individuals regarded as  “moneybags.” A buyer broker would  have sought to get Mary the best deal possible, by negotiating the lowest price, the lowest  interest rate, the best terms and possibly, no closing costs.

Traditional agents,on the other hand, must tell the seller if they know the buyer’s top price and they must disclose the buyer’s identity.They must show the property in a favorable light, although they are required to disclose known major defects.

For those and other reasons, many people choose buyer brokers.