More state legislations are adopting transactional brokerage for its REALTORŪ licensees. Transactional brokerage lightens fiduciary responsibilities for the broker and enables it to serve both sides of a transaction. Brokers represent sellers under contract. Agents not working under contract typically default as agents of the seller, even while representing the buyer. Transactional brokerage is supposed to end this confusion so that the broker and his or her agent can also represent the buyer within the same transaction with equal duties as it does the seller. But a counter trend is beginning to show signs of growth - buyer's brokerages which only represent buyers are gaining strength and starting to expand across the country.

One of the first business models of its kind, Soma Living, a bricks and clicks real estate company serving buyers only, has received a second round of funding from GMAC Home Services. The $20 million infusion will be used toward a national expansion in 14 "wired" cities including New York City, Boston and Chicago by Q4 2000.

The pilot store is located in San Francisco's South of Market neighborhood, and two more are scheduled to open in Northern California later this year. The backing of GMAC will allow Soma Living to expand its stores nationwide.

Soma Living has a unique approach to brokerage - to empower buyers with neighborhood information and other facts before they buy. A combination of bricks and clicks, Soma offers buyer brokerage services with a storefront, in which the buyers can come in and browse properties for sale or rent at computer kiosks. The buyer sets the pace of the relationship, and if they want additional access to services, they become an "Active" or contracted buyer.

Each Soma Living store is staffed with salaried, not commissioned, staff to help with questions. As a buyer's brokerage, the Soma Living staff can offer access to all properties available in the buyer's neighborhood of choice, including those found in the local Multiple Listing Service, for sale by owners, and new homes in new developments.

Meanwhile, master franchiser Fidelis, an exclusive buyer brokerage company with 31 franchises in 15 states, has announced its expansion into Florida, the third master franchise it has sold in "a matter of months." The company reports that it hopes to have seven master franchises in place by December, 2000.

Fidelis focuses on exclusive buyer's agency, in which the franchisees never take listings and never represent sellers. "There is a shift in the real estate industry toward separation of agency relationships and no one is focusing on the homebuyer," says Bob Harple, president of Fidelis. "Also, industry trends point to the eroding value of the listing side in the real estate transaction due to the Internet, listing commission discounts, increase in For Sale By Owners and the saturation of traditional real estate franchises."

One reason why buyer's brokerage may have growing appeal is for brokers who want to own their own companies but may be frustrated by lack of opportunity with other franchise organizations. "Coldwell Banker, Century 21 and RE/MAX are sold out of franchises in prime locations," asserts Harple. "That means that top producers who are ready to make the move are going to consider Fidelis and exclusive buyer brokerage as a viable option for success."

Fidelis Regional owner Bill Barrett explains his choice. "As a Real Estate broker, I have found that specialization is the key to improving efficiency, reducing expenses and increasing profits," says Barrett. "Unlike the Century 21 system that is broker-driven or the RE/MAX system that is agent-driven; the Fidelis system is consumer-driven - a much more powerful force."

For brokers who want to penetrate a market, Harple advises a tactic he says he learned in a book, Marketing Warfare, by Reis and Trout. "There are several ways to get into a marketplace. If you are number one you are defensive. If you are really small you use guerrilla marketing. I use what's called a flanking movement, that is going into an area that is left open, where nobody is paying attention."

"Half of all transactions have a buyer, but nobody pays attention," he says.