Buyers Agent Sellers Agent
Who Does What?
Buyers Agent Sellers Agent, what does it all mean? Many people are confused when it comes to who does what, in a real estate transaction. The first role we will discuss is the Sellers Agents. This person is the agent that lists a home for sale. This agent represents the person trying to sell their home. Their primary responsibility is to see that the the seller gets as much for their home as possible. They are usually only paid only when the home they have listed is sold. If they bring a buyer to the seller of the home they have listed, they have additional responsibilities and disclosures that will be discussed at a later time.
The Buyers Agent is the person that helps a person find a home to buy. Many people are confused about how the buyers agent gets paid. Simply put, the buyers agent is paid if they help a home buyer find and purchase a home. Their fee is paid by the person that has listed the home, (or the seller). This means that in most situations the buyer is using the services of the buyers agent for free. Some people believe that if they find a home on their own, or call the agent that listed the home they will save money. This is usually not the case, and it is our belief that a person will do better using someone that knows what they are doing to assist with their home purchase.
As mentioned previously when an agent represents the seller or the buyer their main responsibility is for the person they are contracted to help. It is fairly common to have one agent represent both sides of the transaction. This situation creates what is known as “limited agency”. This is OK, as long as the agent is able to negotiate the best transaction for both his buyer and his seller. The agent needs to be careful to see that he or she doesn’t give unfair advantage to either the buyer or the seller. The agent is also mandated to disclose, or inform, both parties that he is working for both of them. Simply put, as long as everyone knows what is going on, it is OK. Both parties must also sign a document stating they understand and approve of the limited agency.
Real Estate Broker
Dual agency or limited agency is also created when two agents from the same real estate brokerage are working in a transaction together. For example if two agents from ERA Brokers represent the buyer and seller in a transaction. This must be disclosed, as the Broker is actually the person that ultimately is representing both sides. Ultimately Real Estate agents are representing the broker in any transaction they are engaged in.