Understanding The Difference Between a Buyer’s Agent and a Seller’s Agent

When it comes to buying or selling a home, there are two types of agents you may encounter: a buyer’s agent and a seller’s agent. Here’s what you need to know about the difference between the two:

Buyer’s Agent

A buyer’s agent works exclusively with the buyer to help them find a home that meets their needs and budget. They are legally bound to represent the buyer’s best interests throughout the home buying process. This includes:

1. Helping the buyer identify homes that meet their needs and budget.
2. Providing advice on the local real estate market.
3. Negotiating the terms of the purchase agreement.
4. Facilitating the home inspection and any necessary repairs.
5. Advising the buyer on financing options and connecting them with a mortgage lender.

The buyer’s agent is paid by the seller’s agent through a commission split on the sale of the home. This means that the buyer doesn’t have to pay the buyer’s agent out of pocket.

Seller’s Agent

A seller’s agent, also known as a listing agent, works exclusively with the seller to help them sell their home. Their main goal is to get the best possible price for the seller’s property. This includes:

1. Listing the home for sale on the Multiple Listing Service (MLS) and other marketing channels.
2. Advising the seller on pricing and marketing strategies.
3. Negotiating the terms of the purchase agreement.
4. Facilitating the home inspection and any necessary repairs.
5. Advising the seller on legal and regulatory issues related to the sale of their home.

The seller’s agent is paid through a commission split on the sale of the home. This means that the seller pays the seller’s agent a percentage of the sale price of the home.

Key Differences

The main difference between a buyer’s agent and a seller’s agent is who they represent. A buyer’s agent represents the buyer’s interests, while a seller’s agent represents the seller’s interests. This means that they have different obligations and responsibilities throughout the home buying or selling process.

Another key difference is how they are paid. A buyer’s agent is paid through a commission split with the seller’s agent, while a seller’s agent is paid directly by the seller.

In some cases, a real estate agent may work as a dual agent, representing both the buyer and seller in a transaction. This is legal in some states, but it’s important to understand that a dual agent cannot provide exclusive representation to either party and must remain neutral throughout the transaction.

Conclusion

Understanding the difference between a buyer’s agent and a seller’s agent is important when buying or selling a home. Working with a qualified real estate agent can help ensure that your interests are represented throughout the process.