Once you have made the decision to purchase or sell a home, the next step is to find a real estate agent who will best represent you and your housing needs. Real estate relationships can be complex, and it is vital to know who works for whom.
There are three primary types of real estate agency relationships:
The Buyer's Agent
Many prospective home buyers do not feel it is necessary to contract the services of a real estate agent. They feel the listing agent will represent them fairly during the buying process. However, what many buyers do not know is that the listing agent works solely on behalf of, and in the best interest of, the home seller. Therefore, it is essential that the buyer seek out and find a dedicated **Buyer's Agent**.
A Buyer's Agent works solely on behalf of the buyer. They will assist their client in negotiating contract terms, gathering information on zoning issues, analyzing local tax records, researching school districts and community amenities, and guiding them through inspections.
Normally, there are no extra costs associated with signing a Buyer's Agency Agreement. Any commissions paid in a sales transaction are typically paid at closing by the seller, split between the listing and buyer brokerage offices.
The Seller's Agent
This agent solely represents the seller. If you list your home for sale, this agent is responsible for representing your financial interests, marketing the property, scheduling showings, and handling contract negotiations.
When looking for a Seller's Agent, it is best to interview a minimum of 2 to 3 agents. Ask friends and relatives for references. Here is a list of questions to ask when interviewing agents:
- How long have you been in the real estate business?
- How familiar are you with the local area? How long have you lived and sold properties here?
- How many clients are you currently working with?
- Do you work primarily with buyers or sellers?
- How many homes did you sell last year?
- What is your marketing plan for my home? How will you target out-of-town buyers?
- Can you provide names and phone numbers of recent clients for references?
The Dual Agent
A Dual Agency occurs when a single agent or two agents working under the same broker represent both the buyer and the seller in a transaction. In this situation, the broker and agents must remain neutral and cannot disclose confidential information (such as pricing flexibility) to either side without explicit written permission. This relationship must be disclosed and agreed to in writing by both parties.
What to Look for in an Agent
In addition to finding an agent you trust, look for a dedicated professional who is a licensed **REALTOR®**. REALTORS® are members of the National Association of REALTORS® (NAR) and must adhere to its strict Code of Ethics. A great agent should also possess deep expertise in the local market, including neighborhoods, school districts, utility networks, and local waterfront conditions (like water depths, docks, and shoreline regulations).