Who Is Working for Whom?

Have you ever heard of a lawyer representing both sides of a case?? 

It is a common misconception among home buyers that the role of a real estate agent is the same in every transaction.  Actually, many buyers are not even sure what precisely is the role of a real estate agent, other than to “sell the home.”  Since buying a home is such an important decision, being misinformed about this topic can have a big impact on how well your home purchase will go.  The real estate agent can be your opponent or your ally, depending on what type of an agent you are dealing with. There are several different types that the laws of our state permit, and here I will discuss the two most common types.

In The Seller’s Corner…

….is a seasoned professional called the Listing Agent. If you ever called on a For Sale sign or a newspaper ad to inquire about a home that was advertised, this was probably the person you spoke to.  To be sure, you can simply ask “Are you the listing agent?”  The Listing Agent (also called a Seller’s Agent) is hired by the seller to find a buyer for the property.  But more importantly, this type of an agent has a written contract with the seller to look out for the seller’s best interests when negotiating. This includes obtaining the highest price for the property and making sure that the purchase contract is written so that the seller’s interests are protected. As a buyer this is something you must keep in mind. The Listing Agent should answer all your questions about the property honestly, but if you divulge any information that may give the seller a negotiating advantage, the agent will make sure that his client knows about it. It’s not because they are “out to get you,” but because that’s the law. This sure gives the seller a certain advantage, doesn’t it?

“And what about the buyer?”  you might ask.

And On The Buyer’s Side

(the drum-roll please) is – nobody. Well, for some buyers at least.  How come?  There are people who think they will be okay negotiating and handling the paperwork themselves. Some think they can save money by not having their own agent. And some don’t even know that there is such a thing as a Buyer’s Agent. That’s a shame because, under the laws of our state, Buyer’s Agents do exist. And they can be of tremendous help in the complicated process of buying a home, especially in our current market where Foreclosures and Short Sales seem to be predominant. Just like the Listing Agent is looking out for the seller, a Buyer’s Agent has a written agreement with the buyer to look out for the buyer’s interests. This will include searching for suitable homes, assisting with the loan approval process, handling the paperwork on buyer’s behalf, negotiating the lowest price and/or best terms, and protecting the buyer’s interests throughout the whole process until the key to the house is in their hands.

Best of all, this service is usually free to the buyer!  Yes, Free!   

The Buyer’s Agent gets a portion of the Listing Agent’s commission, even on a HomePath foreclosure, or is paid by the New Home Builder, so you will likely incur no additional cost for having professional help on your side.  None of my Buyer Clients have paid me to help them buy a home in the 8 years I have been an agent.   With this in mind, I don’t know why anyone would buy a home without their own Buyer’s Agent?

I am sometimes asked whether Realtors tend to specialize in one area – either in representing sellers or buyers. There are those that do.  And there are those (including yours truly) who split their time equally between buyers and sellers. I discovered that doing both gives the agent an additional breadth of experience that enables them to do a better job for their clients.

If you are thinking about buying a home in the near future, whether a re-sale home or a new build, and especially a Foreclosure or a Short Sale, now is the time to start thinking about hiring a buyer’s agent.

Remember, sellers have someone looking out for them.  Shouldn’t you?