According to the National Association of Realtors® publication 'Agency - Choices, Challenges, and Opportunities', Exclusive Buyer Agency is: "The practice of representing only buyers and never sellers in a transaction. The company never lists a seller's property and thus never has a seller as a client. Agents never accept subagency that is offered by a seller's agent" (pg. 25).
Recently, a lot of traditional Agents have started advertising that they will represent buyer's. While this is legal in most states even the National Association of Realtors® warns it's members: "Buyer agency is viable method of practicing real estate, but an agent should be cautious in her approach if she is not thoroughly knowledgeable about the entire process. Agents who are used to working with buyers as seller's subagents need to be aware of the new duties and potential liabilities of buyer's agents before changing the form of representation they offer." (pg. 18).
This publication goes on to say that Exclusive Buyer Agency "Promotes a more natural relationship for agents working with buyers" (pg. 26).
In talking about an agent who tries to offer both seller agency and buyer agency it states "The buyer and seller do not have the full range of representation" (pg. 27).
Any agent who lists properties for sale is used to representing sellers and has a legal commitment to protect the sellers interest. The agent must get the highest price possible for the property.
If the Agent, or his or her agency, lists homes for sale they cannot be an EXCLUSIVE Buyer's Agent!
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Why A Home Is A Good Investment
As a general rule, homes appreciate about 3 to 5 percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.
3 percent may not seem like that much. Other investments such as stocks or treasury bills might offer a higher interest rate.
But take a second look.
Let's look at one example.
If you buy a $200,000 home, and put as much as twenty percent down that would be an investment of $40,000.
At an appreciation rate of 3% annually, a $200,000 home would increase in value $6,000 during the first year. At 5% annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned between $6,000 and $10,000 with an investment of $40,000. Your annual "return on investment" would be somewhere between 15% and 25%. Sounds like a pretty good rate of return doesn't it?
Of course, you will be making mortgage payments and paying property taxes, along with a maintenance costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.
You have to pay to live somewhere anyway, why not get something in return for that monthly payment?