I am in the process of getting my broker's license and would like to open an Exclusive Buyer Broker agency. I have decided that I just don't really like working with sellers for a number of reasons.

I have talked to an agent friend of mine with her own company and she is willing to take the listings for me when I have a client that needs to sell in order to buy. So that problem is solved.

What are your thoughts on the success of these Exclusive Buyer Broker Agencies? Do you think the public really cares or even understands the difference?

My other question is - do you know any of these types of agencies in your area that are doing well.

its proven to be a pretty bad business model..
hard to achieve any volume
there is one in my market..
not even in the top50% of brokerages in the mls
and they have excellent seo and rank for most buyer related search terms..
lots of traffic,..very little actual sales..
makes me nervous..
but each market is different.
good luck.

There is an organization of EBA's but with the glut of properties on the market right now, the perceived need for an EBA by the general public is pretty low.

Try googling Tom Early or Jay Reifert or The Buyers Agent. These are three I know were very successful in the late 90's and early 00's runnig buyers only brokerages

Remember, Buyers come in to the market to find property . . . . NOT to find a Broker to represent them.

People often try the exclusive Buyer Agency thing only to find that they don't really have any product to put in the window to draw in Customers. You usually need some kind of "bait to serve as a drawing card.

I liken Buyers to being "free as a bird, free to flutter around and land anywhere, with allegiance to no one.

Sellers on the other hand, are stationary, "like the doggie in the window".

Sellers have to wait for someone to come by . . . . and buy. They have only one thing to sell, and that serves as a control point . . . . they have far fewer degrees of freedom.

True, Buyers may sign a Buyer Broker Agreement with you one day, but you'll often find them looking at property with a new beau the next day.

I don't know of a single such Agency that hasn't reversed itself and again started taking on Listings. Listings are the Bread and Butter of the industry.

Thanks for all the input. I will definately consider these things. But as far as not having anything to advertise, with the IDX and HUD homes that's really no longer true. For most of this year I have only advertised HUD homes and done very well. I guess that is why I'm thinking of doing this.

I think the internet makes all of this a lot easier too than it was in the past.

I love this input - keep it coming. Thanks!

the internet made it alot harder too..

in the consumer mind..
why do i need some buyers agent..
when i got realtor.com, trulia, zillow homegain, and 1,000 of your competitors with free idx?

Personally, I don't know why you would start out in the business closing the door on half the prospects. You might change your mind some day, or have agents working with you who want to list property. Branding your company as exclusively for buyers seems like a limitation that would cost more business than it would gain. It's hard enough to make it in this business, tying one hand behind your back might make for an interesting hook for some business, but ultimately I think it will hurt your chances for success.

deepsea - yes that is sort of what I was worried about as well. What I may do is not brand myself that way but just work as an exclusive buyer's agent without marketing it that way. For instance, when I get listing prospects, just simply send them to someone else but not put on my marketing material that I never ever take listings. There may also be a few that I might want to take from time to time. If the sellers are reasonable and will price appropriately I wouldn't mind doing that occassionally.

A lot of the comments are validating what I already thought. So keep them coming people. LOL

I realize the public is generally a fickle lot; but, what about an exclusive niche of a buyer - the first-time buyer or the high-end home buyer or the buyer who wants to buy new?

First-timers may not be the most brilliant (yet they think they are "because I read it on the internet" and even some of those will think they don't need an agent.

Then there are those buyers - first-timers and been-around-the-block-before buyers - the ones who think they don't need their own agent and run off to a subdivision builder more times than I can count.

Then there's the higher-end buyer - I would certainly hope spending $500k and up on a house that they'd think they need one; but, I take that back - I've had a fair number of them run off to builders too. Once they sign in with the builder, it's too late...and you want to cry on my shoulder? That's $5,000 I charge for every 15 min. increment to cry on my shoulder.

Maybe, just maybe if buyers had to use their own cash to purchase a home, they'd think a way lot more about getting their own representation. With financing, the mindset is still 'it's someone else's money."

Every night before I go to bed I pray my competition will implement your plan.

LOL - That's too good Bigtoe! After really thinking about it, I think that I will simply specialize in buyers, refer out the sellers for a referral fee and simply carry on with what I have been doing.

Even after talking to the one and only EBA in my area, I'm simply not convinced that there is a distinct advantage to permanently cutting off the other side of the business (the dark side I like to call it). Apparently, anyone can go to their annual conference, the fee is a bit higher, but the difference between public admission and member admission is still lower than their annual dues AND I don't have to commit to never taking a listing.

See where I am, buyers sign an Exclusive Buyer-Broker Agreement. So I told him that once that is signed and Limited Agency is waived, I am an Exclusive Buyer Broker for that client. He said not really, and they are trying to get the states that use that verbiage on their forms to change the name of the form so that people can't say they are when they don't belong to NAEBA. Super nice guy but I think they have a real uphill battle on their hands. They can't name an association after a state approved form and then ask the states to rename the form.

Hey thanks for all the input and if anyone else has any other input I'm open to it.

Regardless of the letters after an agent's name or the recognition (and many, many times the lack of recogntion by the public) of an association's name, I can't see any way an association could force THEIR name to be on a buyer's agreement as the ONLY buyer agency.

We can all still be real estate agents - we don't need NAR's endorsement for that - same stands here.

Besides that, I can attest to experience with one ABR who I am just waiting to see their name in print in the r.e.board's violation reading section someday - he was AWFUL. And, I USED to have the ABR until, who is it NAR?, started giving away ABR info to ALL realtors. Decided it wasn't worth paying annual dues while they give it away to others for free.

You want to learn how to be a good buyer's agent - just start reading your r.e.board's violations section online - if they have one, and, take real estate risk classes every time you see them. If you belong to NAR, I believe they have a section of law where cases were even taken to court - immense educational reading, let me tell you. There's always this 'should have known' thing that hangs over our heads.

My saying is always, "Protect your butt first, your client's second."

That's very generous of your friend to help you solve that 'problem'. I wish you the best of luck in your new business, but I would caution you against not working with half your potential clientele (specially since it's the half with something to sell).

There may be a little confusion here:

An Exclusive Buyer's Agency does not list properties - ever
A Buyer's Agency Agreement (like we use here) only covers one transaction.
And these agreements apply to the brokerage, not the individual agent.

I forgot about NAEBA, I thought they disappeared years ago.

Thanks Maui for your input, but sellers have never been 1/2 my business so it's not like I'm giving away half my earnings each year.

Listings have always been the part of my business that I have absolutely positively hated dealing with. I have tried all kinds of things to get myself to enjoy this part of the business but I just can't. I know most wouldn't understand that since they love listings. So that's why I was considering becoming an Exclusive Buyer Agency.

But haven't seen any real reason yet to actually declare that I won't take any listings ever. And from what I can gather from internet searches, buyers don't really understand the difference or care. I think it's a distinction that we recognize being in the industry, but no one else.