Working with a Real Estate Agent

What are the different types of Agents?

The subject of who Agents represent and how they are compensated can be confusing. Legally speaking, an Agent is a person who represents and acts on behalf of another person. The Agent owes certain fiduciary duties to that person including care, confidentiality, full disclosure and accurate accounting. There are three main categories of Agents:

Seller’s Agent – A real estate Agent who is employed by and represents only the Seller in a transaction is a Seller’s Agent. This Agent is also known as the listing Agent because the Agent lists the home for sale and markets it through the Multiple Listing Service. The listing agreement serves as a contract and spells out how the Seller’s Agent will be paid. Responsibilites of a Seller’s Agent include getting the highest purchase price and best terms possible for the Seller.

Buyer’s Agent – A real estate Agent who is employed by and represents only the Buyer is a Buyer’s Agent. The written agreement between the Buyer and Buyer’s Agent spells out the Agent’s duties and how they will be paid. The Buyer’s Agent is usually paid by the Seller through a commission split with the listing Agent. In some cases, a Buyer’s Agent will be paid by a mutually agreed upon formula that could include fees for services rendered. The responsibilities of the Buyer’s Agent include representing the Buyer’s interests throughout and working to negotiate the best price and terms for the Buyer.

Dual Agent and dual agency – This occurs when a real estate Agent is representing the Seller and is also showing the home to potential Buyers. Dual agency occurs when the potential Buyer is working with an associate from the same real estate company that listed the home for sale. There are laws and statutes designed to protect Buyers and Sellers that your Agent can explain to you. Keep in mind that an Agent and their associates must maintain the confidentiality of their clients and cannot reveal information pertaining to price, terms or motivation to other parties. You will receive more information on this subject prior to working with an Agent and will have the opportunity to choose some options that will be best for you.