Knowing Whom Real Estate Agents Really Represent
Thousands of Americans who enter the real estate market each year are either selling or purchasing a home. Sellers and buyers in the market navigate through the hassles in the market by using the real estate agents. It’s often to understand whom does the real estate agent really represent in the market. Sometimes an agent works for the buyer and at times for the seller. As a stake hold in the real estate industry, you need to protect your interests by knowing whom does the agent really represent.
In most of the states, anyone who charges a fee to assist in buying or selling of a property for another person must be licensed. A broker has a direct relationship with the owner of the property. Agents work together with the brokers and they act as salespersons. The broker is the one who pays the agents. In this article an agent is a person who is licensed to represent a certain party.
“We are not interested in the possibilities of defeat; they do not exist.” ~ Queen Victoria
Seller’s and Buyer’s Agents
When a seller hires an agent to help in selling and signs a listing agreement in the process, the agent is said to be a listing agent and he/she represents the seller only. This means that the agent can list a property for sale and the seller pays the agent a commission once the house sells out. Listing agents are seller’s agents if they are working for a company that has been licensed to list properties. On the other hand, a buyer’s agent represent the client searching for a good home that will meet her needs.
In this case the buyer’s agent searches for a home for the client, negotiates the price and should discover anything negative about the properties the buyer has shown interest on them. The best way for a client to make sure that the agent is solely working for her is by signing a contract that stipulates that the agent is a buyer’s agent. The buyer pays for these services.
Dual Agents
An agent working for both the seller and the buyer is known as a dual agent. Even though it’s convenient to have an agent working on a single deal, there is potential danger because the agent cannot really define where his loyalty lies. The situation becomes worse when the interests of the two parties are different. Because dual agents earns commission from both parties, their interests will be making a sale rather than making a good deal for the parties involved. Dual agents are normally licensed if the two parties have full consent.
Cooperating Agents
These are seller’s agents who shows the seller’s property to potential buyers and if they make a sale, they are paid by the listing agent. Cooperating agents always appear as if they are working for the buyer. In fact in some states, cooperating agents are widely known as buyer’s agents.