Buyers Agent vs Sellers Agent: Which Type of Agent Should I Choose?

Buyers Agent vs Sellers Agent: Which Type of Agent Should I Choose?

 Historically, the agents involved in most real estate transactions represent the seller and not the buyer. This is because the listing agent is almost always also the seller’s agent. This means that the agent’s primary goal is to ensure that the seller gets the most for their home, because after all, the amount of the agent’s commission depends on it.

 But, in the mid-80’s, trade organizations and state officials started questioning certain practices within the real estate industry. As part of these inquiries, it was discovered that agents represented solely the interests of the sellers and not those of the buyers. After this discovery, exclusive buyers agents started working on behalf of the buyers in order to even out the representation.  After the establishment of buyers agents the question of who would benefit the home buyer more between a buyers agent vs sellers agent arose.

What are Seller’s Agents?

 A seller’s agent works for the broker that holds a seller’s listing. A seller’s agent can help a buyer find and purchase property, and in doing so, they must disclose certain facts, such as a leaking roof or other known structural problems. But, a seller’s agent is not able to disclose personal and confidential information about the seller or their property, such as an impending divorce or foreclosure.

 It is the legal duty of a seller’s agent to get the best possible price for the seller. While a seller’s agent is obliged to negotiate fairly with the buyer, they are not able to negotiate with the seller on the buyer’s behalf because this will compromise their legal responsibility to help the seller get the highest price possible for their property.

What are Buyer’s Agents?

 A buyer’s agent is loyal to the buyer and only represents the buyer’s interests. In doing so, a buyer’s agent is not permitted to disclose personal and confidential information about buyer, such as net worth, other properties the buyer may own or what the buyer is willing to pay for the property.

 A buyer’s agent has a legal responsibility to negotiate the price and terms of a home purchase that is most acceptable to the buyer.

What is a Dual Agency?

 A dual agency is one that has agents who not only list the seller’s property for sale but also represents the buyer in purchasing that listing. In most cases, the use of a dual agency must be agreed to in writing by both the buyer and the seller.

 In cases where the dual agency is one with designated agents, both the buyer and seller will be assigned their own dedicated agents within the same agency to work the transaction.

What are the Disadvantages of Working with a Dual Agency?

 Working with a dual agency poses many potential problems for the buyer. Here is just one example:

 The agent you chose to work with at ABC Realty shows you a number of homes, including some that are listed by ABC. One of ABC’s properties best meets your needs, so that is the one you want to pursue. Since your agent is not the ABC listing agent for the home you picked, there should be no problem, right? Unfortunately, this is not the case. The Buyer Broker Agreement you signed is with the broker of ABC Realty, not with the individual agent. The Listing Contract is also with the broker of ABC Realty and not with the seller’s individual agent. Hence, BOTH the seller’s agent and your buyer’s agent are sub-agents of the broker of ABC Realty. When both parties are represented by two different agents within the same brokerage agency, the agency will be actively betraying the interests of both of its clients because both agents will be working for what best suits themselves.

Don’t Risk It: Let Just For Buyers Agents Handle Your Home Negotiations

 Unlike seller’s agents and dual agents, exclusive buyer’s agents at Just For Buyers work solely on the behalf of you, the buyer. It is clear to see in the comparison of a buyers agent vs sellers agent who really is on the home purchasers side. We take our roles very seriously and we strive to help our clients obtain the most favorable prices and terms on their dream home purchases while ensuring complete confidentiality of your personal motives and financial intentions. If you are in the market for a new home and you want an expert to help you negotiate the best terms, give us a call at 910-202-4813 today. One of our exclusive buying agents will be more than pleased to assist you.

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