Lawrence Ross 401 E. Fireweed Lane Suite 101 Anchorage, AK 99503 907-561-2227 BuyersRE@alaska.com

QUOTES ON BUYER BROKERAGE 1. CHICAGO TRIBUNE - May 31, 1997 "Hiring a buyer's broker costs the home buyer nothing extra." 2. CONSUMER REPORTS - February 1994 "You can't have partial loyalty, an agent either works for you or works for someone else." 3. MONEY MAGAZINE Save by Hiring Your Own Broker by Carla A. Fried "A recent study by U.S.Sprint found that 232 relocating Sprint employees who hired buyer's brokers paid an average of 91% of a home's list price. People who use traditional agents typically pay about 96%. On a house originally priced at $150,000, that's a difference of $7,500. 4. SMART MONEY "Groups such as the Consumer Federation of America and AARP recommend using buyer's brokers" 5. KIPLINGERS PERSONAL FINANCE Buying A Home By Elizabeth Razzi "Exclusive buyer's brokers work only with buyers and don't take listings They're obliged to help you find the best deals and lowest price. "Bottom line: You don't truly have an advocate in your corner unless you both sign a contract saying so." 6. BUSINESS WEEK Smart Money: A Personal Shopper for your Dream House by Pam Black "A traditional real state broker is legally bound to work for the seller who pays the commission and therefore may be more intent on selling listed homes than finding your dream house. Such agents must pass on information such as the buyer's income to the seller, who then has a better idea of what price to hold out for." "Because these (Buyer) brokers are obliged to get buyers the best deal possible, they approach a house with a critical eye for apparent flaws. Buyer brokers also show properties sold by the owner, which can be cheaper because the only commission is what you agree to pay your broker. Sellers' agents usually won't show these homes because they don't make commissions on them." A well -trained, experienced buyer broker is a great asset, says Peter Miller, author of "How to Sell your home in Any Market." Usually the buyer broker splits the sales commission with the seller's agent, just as a subagent who didn't have the listing would the broker who did. So the fee still comes out of the sale price. Some people might assume that buyers' agents have an incentive to keep the price high. But again, the broker must get you the best deal. "In my experience, all of them do." says Stephen Brobeck, executive director of the Consumer Federation of America. 7. KIPLINGER'S CHANGING TIMES "Exclusive agencies are the best. They remove any conflict of interests, which is the main reason for considering a buyer broker in the first place." 8. SMART MONEY - June 1995 "Groups such as the Consumer Federation and the American Association of Retired Persons recommend using buyer's agents...the reason is they work." 9. MONEY MAGAZINE - July 1996 "You save big bucks by hiring a buyer broker." 10. U.S. NEWS AND WORLD REPORT "If your agent isn't a Buyer Broker - he works for the seller" 11. BUSINESS WEEK - September 1995 "Exclusive buyer broker -- aims to get best deal for home buyer." 12. CONSUMER REPORTS Real Estate Agents: Get Your Money's Worth by Maureen F. Glasheen "As the FTC noted: 'many buyers may run several risks...if they identify as 'their broker' a person who is not in fact intending to act as their agent." For example: A buyer may "reveal information he or she might otherwise wish to keep confidential" because such information would help brokers working for the seller in obtaining the highest price for a home. A buyer may believe a broker is "'scouring' the market...as a representative, when in fact, he or she is picking out those properties...which both meet the buyer's criteria and which also will bring in a large commission..." A buyer may assume that the broker will use his or her expertise to discover defects in a house, when without a contractual agency relationship, the broker may feel he or she has no duty to do so. Survey data from the study revealed that, in many transaction, sellers were informed by agents about how much buyers might be willing to spend, while most buyers expected such information would not be revealed. Such double dealing can also work against sellers, if their agent isn't protecting their interest, but seeking simply to close a deal. For example, sellers can be required to refund the buyer's money if the seller's agent (or subagent) misleads the buyer about the nature of their relationship or facts about the house. Many large firms have indulged in the lucrative practice of "in-house sales" in which only one company is involved in listing the property and producing the buyer. In other words, the same company acts as the seller's agent and buyer's agent in the same transaction to pick up the 6% or so set aside to pay two agents. Recent laws passed in Texas, Georgia, Illinois, Minnesota, and Colorado would appear to minimize broker liability for this "double dip." You should begin by asking yourself whether you need an agent at all. If you cannot take care of yourself in a business transaction then it is money well spent to have a loyal agent of your own. Nevertheless, until the industry gets used to old-fashioned rules of loyalty, you should remember that you are the boss in this market, and you set the terms of employment. When you engage a broker or attorney to act as your agent, you should look for companies that subscribe to a "single agency" policy or "exclusive buyer agency" policy. Steer clear of companies that offer disclosed dual agent as a policy. Remember, the first question you should ask your broker is: "whom will you represent?"" Copyright © 2003-2005 Buyers Real Estate, All rights reserved 401 E. Fireweed Lane, Suite 101 • Anchorage, AK 99503 Phone: 907-561-2227 • Email: BuyersRE@alaska.com Designed by Sundog Media & Alaska Internet Services