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:
- Helping the buyer identify homes that meet their needs and budget.
- Providing advice on the local real estate market.
- Negotiating the terms of the purchase agreement.
- Facilitating the home inspection and any necessary repairs.
- 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:
- Listing the home for sale on the Multiple Listing Service (MLS) and other marketing channels.
- Advising the seller on pricing and marketing strategies.
- Negotiating the terms of the purchase agreement.
- Facilitating the home inspection and any necessary repairs.
- 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.
