Should I Work With A Buyer's Agent?
A Seller's Agent? A Dual Agent?
You should understand from the beginning of your relationship with your
real estate agent what type of relationship exists. In most states, real
estate agents (both brokers and sales associates alike) are required by
law to let consumers know whether they represent the buyer or the seller.
In the past, real estate agents represented the seller exclusively, whether
the agent helped a seller to market and sell the home or helped a buyer
find and purchase the home. In other words, agents were at one time legally
bound to represent the seller in a residential real estate transaction.
In that same scenario, the seller paid both the listing agent and the
agent who brought the buyer.
However, in today's real estate market, you may find that you can choose
between a wide variety of options for representation. If you want to sell
a home, you can work with a "seller's agent".
If you are purchasing a home, you can work with a subagent of the seller's
agent and, in many areas, you can engage an exclusive "buyer's
An additional situation in some states is dual agency.
This type of agency exists when the buyer decides to have the seller's
agent prepare the offer on the buyer's behalf. A buyer who elects this
situation, and all additional parties to a transaction, should receive
full disclosure of representation. In some states, dual agency also affects
the real estate professional's fiduciary responsibilities to the seller.
Keep in mind that real estate laws differ from state to state and even
from locale to locale. And within this framework of variety, laws can
change. For more in-depth answers for your specific situation, talk with
a knowledgeable real estate professional and ask about local practices.
Be sure that you understand and are comfortable with the options involved
when you engage the services of a real estate agent.