Buyer's Representation. Few topics in the real estate field have the ability to spark as much heated debate, or to elicit as much intense emotion, as the subject of Buyer's Agency.

No one within the real estate community contends that the use of a Buyer's Agent by a consumer is necessarily a BAD thing. However, some REALTORS^® maintain that the separation of agency into two camps (Buyers Agents and Sellers Agents) is unnecessary.

These traditionalists believe one agent can effectively serve both buyer and seller at the same time, with no adverse effects to either party. Proponents of Dual Agency (the term used to describe the situation where one agent is handling both sides of the transaction) argue that this method of representation works effectively, with no one the worse for the arrangement. As long as both sides are aware of the dual agency, they argue, and the professional handling the transaction is scrupulously fair in his/her treatment of all parties, then one agent working both sides of the fence is not a problem..

Perhaps.

While it is hard to fault this argument without seeming to "trash" a time-honored method of selling real estate, the truth remains: it is difficult to serve two masters at the same time. One agent negotiating with both buyer and seller can (and sometimes does) contribute to misunderstandings, awkward situations, and, occasionally, out and out hostilities.

This is not to suggest that purchasers who opt to work with Buyers Representatives are assured that everything will always go smoothly. Moments in life always exist when Murphy's Law takes over (To paraphrase poor old Murphy: What can go wrong, will go wrong--at the worst possible time) .

In the majority of real estate transactions, buyers are better served working with an agent who represents JUST them, as is the case with an Accredited Buyer's Representative. That way, buyers have the peace of mind of knowing that a true agent-client relationship exists; they have the guarantee that any time they confide in their Buyer's Agent, their remarks remain confidential; and they can rest assured that someone is looking out for their interests (which has to be more comforting than knowing someone is just "being fair" to them).

So, is this a cut and dry issue? Should today's buyers always seek out Buyer's Representation, and never deal directly with the seller's representative, or employ dual agency?

No. There are certain situations and circumstances where the use of a Buyer's Agent might prove a hindrance in the home-finding process. In these special instances, to get a shot at a house they really want, buyers might well do better just "playing the field" , rather than signing a contract with any particular Buyer's Agent.

As a buyer, you should think twice before signing an exclusive contract with a buyer's representative when the Market Is HOT. You know you are in the middle of a HOT real estate market if :

• The area you want has few desirable listings,
• Agents spend hours combing the streets, hoping to spot newly-erected "For Sale" signs.
• Houses sell within weeks or even days of hitting the market.
• Houses receive multiple offers
• Houses sell for list price or more !

In a truly HOT real estate market, inventory is King, and the listing agent is the Keeper of The Keys to the Kingdom. What this means is the first buyer to hear about a new listing will be a customer dealing directly with that listing agent. Why? Because the listing agent stands to make more money if he/she can sell the property, as well as list it.

How can you increase the odds that you will be the one to get the call? In this situation, a buyer might be well-advised to contact as many of the top listing agents in the area as possible. (These Realtors are easy enough to find. They're the ones with all the signs in the lawns and ads in the papers.) Give these agents a good idea of the type of property you are seeking, and let them know you are willing to work directly with them, if they find such a property. This will enhance your chances of being placed on everyone's "Hot Buyer List", and increase the odds that you will be among the first to learn about the newest listings.

It is also advisable to meet with a mortgage company representative, or bank, before-hand. If you are pre-approved for the price range you are pursuing, then the chances of the agent calling you quickly increase dramatically.

Choosing this course of action (going it alone) is certainly more labor-intensive for a buyer than opting to work exclusively with a Buyer's Representative. However, the rewards--getting a chance at the house you really want--may make the extra work seem worthwhile.

The opinions offered here are just that, opinions. It is certainly possible to deal successfully with Buyers' Agents in HOT markets. However, if you are looking in such a market, and you are continually hearing horror stories about buyers losing out on house after house because of multiple offers, then you might want to at least consider not signing an exclusive agreement with anyone.

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