What is the Difference Between a Buyer’s Agent and a Seller’s Agent?
Navigating the real estate world can feel overwhelming, especially if you’re new to buying or selling a home. It’s important to understand the roles of the professionals that help you throughout the process. While most people understand the roles of a mortgage broker or loan officer, it can be a little harder to discern the difference between the buyer’s and seller’s agents. Both are licensed real estate professionals but their roles and responsibilities differ depending on who they represent.
Choosing An Agent
Whether you’re buying or selling a home, it’s important to work with an agent you can trust. The agent you choose should have plenty of experience and understand your local market. It’s also important to find an agent that’s easy to communicate with. Agent’s play a crucial role in making transactions smooth and successful. A good agent will make sure their client is well represented throughout the process.
Buyer’s Agent
The goal of the buyer’s agent is to advocate for the homebuyer’s best interests throughout the buying process. Before hiring a buyer’s agent, you will be asked to sign a Buyer Agent Compensation Agreement or BRBC form, which is required by the California Association of Realtors. This agreement essentially “hires” the agent for an agreed upon fee to help them find and purchase a home. Once hired, the buyer’s agent curates a list of properties based on the homebuyer’s preferences including budget, location, and space requirements. Once the homebuyer decides on a property, the buyer’s agent prepares the offer with the terms specified by the buyer. They help negotiate with the seller or seller’s agent to get the best price and terms possible for the homebuyer.
The buyer’s agent assists with all parts of the buying process from negotiating with the seller’s agent to ensuring the buyer accurately completes and understands all paperwork.
Seller’s Agent
A seller’s agent, sometimes called a listing agent, helps the seller market their property, attract buyers, and secure the best terms of sale. The seller’s agent helps a seller determine the best asking price by providing a Comparative Market Analysis of the local area’s recent sales. Pricing a home correctly is vital to attract local buyers while maximizing profit for the seller. The seller’s agent assists with marketing the property and provides advice on staging and best practices for online listings and open houses. They make sure the property gets as much exposure as possible.
The seller’s agent helps screen potential buyers to ensure they are financially capable of purchasing the property. They negotiate terms with the buyer’s agent, and oversee the paperwork and deadlines to ensure a smooth closing process.
Is It Possible for One Agent To Do Both?
While it is possible for one agent to act as both the buyer’s and seller’s agent, this isn’t always beneficial for all parties. A dual agent must remain neutral, making it difficult to properly advocate on either party’s behalf. This can lead to less than favorable results for both the buyer and the seller.
Referring Agent
In a new home purchase, a buyer’s agent will act as a referring agent. They will help buyers to locate properties that may work with their budget and their desired wish list, some resale and possibly new homes. When a buyer purchases a new home, the agent that helped them find it may receive a referral fee to offset from the builder/seller that is credited toward the agreed compensation signed within the Buyer Agent Compensation Agreement or BRBC.
A referring agent is not a party to the sales transaction, nor do they have any requirements tied to Real Estate Agency. The new home sales representative plays that role in the purchase transaction. This is due to the specialized forms and disclosures that come with a new home rather than a used, resale home.
Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.