Advantages of using a Buyer's Broker:
As a member of the Taos County Association of Realtors and the Multiple Listing Service, I have an agreement with all other REALTOR® members that commissions will be split between listing and selling brokers; the seller has already agreed to pay a specific commission ~ the agreement is with the listing broker, not the seller.
from Not One Dollar More! © Joseph Eamon Cummins 1999:
Buyer brokers now pledge to look after the buyer in the same way traditional realty agents have always been legally obligated to look after the seller. The buyer broker (sometimes referred to as a buyer agent or buyer representative) advises only the buyer, searches for suitable homes, and negotiates the lowest purchase price and best terms, representing at all times only the homebuyer's best interests, never the seller's.
Naturally, this type of broker takes his instructions solely from his client, the buyer. He owes no loyalty or confidentiality to the seller, unlike the traditional agent who pledges fiduciary responsibility (loyalty, confidentiality, full disclosure, etc) always, and only, to the seller.
The buyer broker's fee, typically, is paid from the standard sales commission taken from the price paid for the home. It works this way: The agent who listed the home for sale splits the commission (usually 6-7% of the selling price) with the broker who represented the buyer. The net result is that the buyer's interests are fully and exclusively represented, usually without any extra out-of-pocket cost to either side. So, neither the seller nor the buyer pays extra when a buyer broker is involved, yet both sides are fairly, equally, and separately represented.
Complete article at
"Buyer brokers will better represent the interests of buyers than will sub-agents. They are more likely, for example, to negotiate a lower sale price on a house."
From the AARP brochure "Buying a Home: