The distinction between the buyer’s agent and listing agent is need to know information for anyone looking to poke around in real estate. Choosing to use a buyer’s agent when looking to purchase property is a must. If you are looking for loyalty and an agent to put your needs first and foremost, the buyer’s agent is the right choice for you. Who would want the seller’s agent representing them? Don’t let confusion over the process and all it’s potential players take away from your transaction.
Anytime you cruise by a ‘for sale’ sign and contact the agent on the sign you are contacting the (seller’s) listing agent. Although it is unethical to become biased during dual agency it is a possibility, as their client’s needs are their primary focus. Dual agency refers to a real estate transaction during which one agent represents both the buyer and seller. As a seller’s or listing agent, their loyalty ultimately lies with the seller at all points of the transaction. The job of the seller’s agent is to market the listed property to get the sellers the highest possible price for their property. It can be difficult for one agent to look out for the buyer’s desire to get the lowest possible purchase price while simultaneously pushing to achieve the opposite goal for the seller.
Fortunately, the buyer’s agent is available to assist buyers as a trusted advocate. A buyer’s agent does not work for the seller or the listing agent, freeing them up to offer expert advice on properties and services throughout the transaction. Everything from which mortgage lending company, home warranty and inspection company could be the best fit for you, is covered under the umbrella of services a buyer’s agent can provide. It’s quite the list of benefits for someone you never have to pay out of pocket.
Taking on a skilled buyer’s agent to walk you through your next transaction can be a great assurance that things will go as planned. Familiar or not with the real estate world, an insider that you can trust will provide insights that you just aren’t exposed to otherwise. The benefits of working with an exclusive buyer’s agent allow for a comfortable experience in negotiations. The buyer is able to align with an agent they can rely on to “disclose beneficial insights, relieve pressure to purchase, and fight to get the lowest possible purchase price in negotiations“.
There are some responsibilities for the prospective home buyer as well. Using a buyer’s agent is an exclusive arrangement. While working with a buyer’s agent it is expected that the client doesn’t give personal information out to other agents or contact other agents to see properties. The potential home buyer should most importantly be upfront and clear about their must haves and deal breakers in order to streamline the process. Let the buyer’s agent use their expertise to find you the ideal abode, all they need are the tools to narrow the hunt.
Even more impressive is that you, as a buyer, don’t have to pay them any money. That’s right, no money needs to be paid to your buyer’s agent as their commission comes from the seller’s side of the transaction. The commission agreed upon by the seller, when listing the property, is split between the two agents. The buyer is only able to negotiate the commission percentage with the seller’s agreement. This can also be a common misconception as the amount has already been determined when the seller contracts with their seller’s agent.
Do you have someone on your side of the table?