What is a conflict of interest? BusinessDictionary.com defines "conflict of interest" as (1) a situation that has the potential to undermine the impartiality of a person because of the possibility of a clash between the person's self-interest and the person's professional interest or public interest OR (2) a situation in which a party's responsibility to a second party limits its ability to discharge its responsibility to a third party.
What conflicts of interest might occur during your San Diego home purchase?
(1) If your San Diego buyer's agent is not an exclusive buyer's agent, then you may consider purchasing one or several properties in which the sellers are already represented by your agent. An agent cannot represent the best interests of both the buyer and the seller, so the agent would have a conflict of interest.
(2) Your buyer's agent might get paid more money if you buy Property X than if you buy Property Y. Your agent owes you a fiduciary duty to look out for your best interests, so if your agent is faced with this scenario, your agent is experiencing a conflict of interest.
There are all sorts of conflicts of interest that you can run into when purchasing a home. Some of them are difficult to avoid even when hiring the best of agents. One of your goals should be to hire a San Diego buyer's agent who removes as many of those conflicts as possible, so that your agent is in the best position to represent your best interests throughout the home search and purchase process.
An exclusive buyer agent never takes listings, never represents sellers. Hiring an exclusive buyer agent removes the most obvious conflict of interest (an agent who represents the other side or stands to get paid more if you buy a certain listing). Learn more about the differences between a buyer's agent and an exclusive buyer's agent.
Having a clear compensation agreement between you and your agent is a great way to remove another conflict of interest. If you don't know how your agent is getting paid, then your agent might only be showing you properties that pay the agent well or may be talking you out of buying properties that don't pay the agent well. If you decide up front how your agent is to be paid, you will then have an agent who can show you any property without a conflict of interest in regards to compensation. Learn more about how San Diego buyer's agents get paid.
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.
More about Justin Gramm on Google+.