Some firms work only with real estate buyers, signing buyer agency contracts to make them legal buyer representatives. They focus purely on buyer needs and do not take listings at all because they feel that representing any seller creates a conflict with the work they do to make sure they are loyal to the needs of their buyers.

If you choose to work for an exclusive buyer agency you'll never represent a seller during a transaction. Working for only the buyer eliminates a great deal of the stress that occurs when you are responsible for looking after the interests of the seller too. You'll be free to reveal nearly any information to your buyer that will result in a better deal on the property.

Exclusive buyer's agents are nearly always compensated from the commission a seller pays at closing, but the contracts they sign with buyers usually stipulate that buyers will pay the commission if the agency cannot collect from a seller. That's not substantially different from the contracts used by buyer's agents at a traditional firm, which work with both buyers and sellers. Working in the buyer's best interest, and knowing that they are receiving compensation from the buyer, an agent may solicit homes that are not on the market or show their buyer property being offered by a for sale by owner.

Being an exclusive buyer's agent means that when your buyers become sellers, they will need to work with another agent. You will usually have fewer upfront costs than a listing agent (fewer marketing dollars to be spent), but you will need to be available to show property on an ongoing basis.

The National Association of Exclusive Buyer Agents (NAEBA) is one of the educational organizations that firms can affiliate with to promote their buyer agency business. The NAEBA offers an educational Web site for buyers at www.naeba.info. The organization has an annual convention and offers agents the benefits of shared expertise among its members. The NAEBA awards the Certified Exclusive Buyer Agent designation (CEBA) for agent studies. All NAEBA members work only as exclusive buyer's agents for firms that deal exclusively with buyers.

REBAC, the Real Estate Buyer's Agent Council, is an organization that's affiliated with the National Association of Realtors®. It also offers its members a national convention and educational opportunities through the Accredited Buyer Representative designation (ABR). A manager's version of the designation is also available.

Many agents who hold the ABR designation work for firms that only contract with buyers, but most ABR agents work for traditional firms that represent both buyers and sellers. Read about more educational designations in Chapter 2.