The difference between a buyer’s and seller’s agent is simple; one represents the buyer while the other represents the seller. But it’s important to understand the difference and the responsibilities each hold. Let’s take a look at each one.
Definition: If someone wants to sell their home, they enlist a seller’s agent. A seller’s agent (also known as a listing agent) represents the seller in the transaction. In return for their services, they receive a fee.
Example: A family deciding to sell their lake house would use a seller’s agent to handle the transaction.
Any person or entity wanting to sell their property should use a seller’s agent. Not only does it save the seller’s time, but the seller’s agents can also negotiate better and increase the money in the seller’s pocket. The worst thing a seller can do is list their house too high or too low.
Definition: If someone is in the market for a new home, they enlist a buyer’s agent. A buyer’s agent represents the buyer in a transaction. In return for their services, they receive a fee.
Example: A family deciding to move across town with specific needs for more room for their family to grow would hire a buyer’s agent to help simplify the process.
Hiring a buyer’s agent has its perks. Agents usually bring knowledge of the local market. From average price points in the area to neighborhood safety ratings, a local agent will know the area inside and out. Obviously, the most significant perk of hiring a buyer’s agent is that they can assist clients with all legalities, negotiations, and paperwork.
What’s the Difference between Sellers Agent’s and Buyer’s Agents?
One represents the buyer, while the other represents the seller. It’s that simple! In some transactions, a broker represents both the seller and the buyer, which is where the term dual agency comes from. It’s worth noting many states no longer allow dual agencies due to the difficulty of balancing both clients fairly.