An EBA is an Exclusive Buyer's Agent. This is an agent that works in a firm that never represents sellers. EBAs make the promise to their buyers to refrain from representing sellers. They work in firms, that never represent sellers. This eliminates the unavoidable conflict of interest within a real estate firm, which is inherent to dual agency or designated agency.
Conflict of interest does not benefits a home buyer. Regardless of how dual agency is presented, it is impossible to serve both sides well in a transaction, because strategic guidance and negotiation require that the client's confidentiality be fully respected. EBAs therefore work in firms that never take listings, so no conflict can emerge, and the clients' interests are best served. The entire firm is working on the side of the buyer. Relinquishing the listing side of the commission is not something most Realtors are willing to do, but it is the best way to protect the client, and that makes it worth it to us.
"EBA" is starting to be used by agents from listing firms who work with buyers. These buyer agents are not properly called EBAs, because their firms take listings, and therefore a conflict of interest within the firm can exist. Conflicted representation can be costly to the buyer in lost opportunity and negotiation advantage.
EBA is best understood as the absence of conflict of representational interest within a firm. Working with and EBA means knowing for sure that your agent (and the entire firm they work for) represents you and not the seller.
This is only possible to assure in true EBA firms. The title of EBA will likely be widely misused in coming years as agents from seller agencies seek to benefit by association with it. Real Estate companies representing sellers are starting to use it in their marketing efforts.
Our advice:
Before you choose an agent, look at the level of commitment they have made to protecting your interests. Judge them by these criteria before any other.
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For a definition of EBA compiled Ray Wilson in his very useful
guide to homebuyers entitled "Bought not Sold" click here.
