Buyers must know the distinctions between the seller, buyer, and dual real estate agents. The legal and financial consequences of hiring the wrong agent could be substantial. Please keep reading to learn the distinction and how to use it to your advantage in home buying. Best way to find the buyers agent Sydney.
In recent years, the roles of buyer and seller agents have received considerable attention. In recent years, legislation in the real estate industry has mandated that agents disclose whom they represent. Usually, you’ll find out early on who the agent is representing (the buyer or the seller) and sign a disclosure form stating as much. The seller’s agents represent the seller. Agents who show and market homes for sale typically represent the seller. As a potential buyer, you may find them helpful, friendly, and willing to show you several properties and guide you through the offer process. However, their usual role is to serve the seller and protect their best interests. Buyer’s agents, on the other hand, are employed by the buyer and are legally obligated to represent the buyer’s best interests. We’ll come back to the concept of dual agents shortly.
This typically has nothing to do with the party responsible for paying the agent. So then, what’s the big deal? There are monetary, legal, and ethical reasons why a buyer should employ a buyer’s agent. An agent for the seller owes their fiduciary duties to the seller, not you, the buyer. This means the seller will have someone representing their best interests during negotiations. Here’s a real-world instance to illustrate my point. Let’s say an agent learns that the seller is highly motivated because they need to move for a new job and is now willing to accept $15,000 less than the asking price. If the agent is a buyer’s agent representing your interests, they must and will likely be eager to share this data with you. If, however, the agent is the seller’s agent representing the seller, they are under no obligation to disclose this information to you. They may initially withhold it to elicit your highest offer.
Is it possible to define a dual agent? Occasionally, you may come across an agent who claims to act in a dual role, representing both the buyer and the seller. Please exercise caution. You, the buyer, might want to avoid a double agent. Due to the inherent conflict of interest, a double agent cannot effectively represent the buyer or the seller. Some excellent agents can fulfill both functions with flying colors. However, you must be aware of this potential disagreement as a purchaser. Seek out a good buyer’s agent whose loyalties are aligned solely with you if you want the lowest price on a home.
It’s natural to wonder, “Who pays for a buyer’s agent?” In most cases, the selling agent will place the property on the MLS (or “multiple listing service”) and negotiate a split commission with the buyer’s agent. The seller’s and buyer’s agents would share equally in the real estate commission. This means the seller is footing the bill for the buyer’s agent even though the agent is doing the legwork for you. In rare cases, a seller may be unwilling to share their commission with the agent who brings them a buyer, forcing you into a complex negotiation over who will bill the buyer’s agent.
As a home buyer, you should know the financial, legal, and ethical ramifications of using a buyer’s, seller’s, or a dual agent. Find a good buyer’s agent with at least ten years of experience in your market before you begin your home search. They will work in your best interests and have the expertise to get you the best possible deal on the house.