Who is representing who in a real estate transaction?
Did you know that all real estate agents represent the seller when a home is for sale on the housing market unless an agreement is made between a real estate agent and the home buyer? When someone is looking to purchase a home, a lot of times, people will drive through the neighborhoods of homes that they are interested in and will call the agent on the sign for information on that particular home. The agent who has the sign in the yard is known as the “Listing Agent” or “Sellers’ Agent. They represent the owner or seller of the home that is for sale. So, you inquire about the home and start talking with the Listing Agent, everything you have spoken with them is now information the seller’s agent will go back and tell their seller. You just lost your negotiating power by speaking with the listing agent!
A Buyer’s Agent represents you, the buyer, not the seller! When you contact a real estate agent to help you find your new home and let’s say the seller divulges information to the buyer’s agent, such as a willingness to sell at a certain price below the asking price, your buyer’s agent will pass that information on you, the buyer! A good buyer’s agent is negotiating all terms to their buyer’s best interest!
Another huge advantage of working with a buyer’s agent is in the negotiation process. If a home buyer is negotiating closing costs on a home, without an agreement with a real estate agent representing the buyer exclusively, information about the buyer’s personal finances can and most likely will be disclosed to the seller. By the seller receiving this information, it can adversely affect being able to negotiate a lower price for instance. Your buyer’s agent will assure you that your personal information is well protected and will always keep you, the buyer’s best interest in mind! A buyer’s agent will help you find the right mortgage lender, find a good home inspection company, work with you through every part of your home-buying experience, your buyer’s agent will handle all communication between you and the seller, they are your advocate, working toward your home ownership goals.