There seems to be eternal confusion about the roles of real estate agents. Frankly, it can be rather baffling. Just who represents who? When you enter into a discussion with a real estate agent, you should from the outset understand what type of a relationship you have with the agent, and where he/she’s obligation lay.
There are basically two types of real estate agents in Marin – A ‘Seller’s Agent’ and a ‘Buyer’s Agent’. Under the terms of the listing agreement, a Seller’s Agent acts as the agent for the seller only. The Seller’s Agent’s job is to help the seller prepare the property for sale, price it, market it, negotiate the deal, etc. In other words, the Seller’s Agent’s job is to sell the house. A Buyer’s Agent, on the other hand, acts as agent for the buyer. A Buyer’s Agent helps the buyer get a loan, find a house, make an offer, negotiate the deal, coordinate inspections and much more. While the Seller’s Agent owes a legal duty of trust to the seller, the Buyer’s Agent owes a legal duty of trust to the buyer.
So, let’s talk commissions now. The seller hires an agent to help sell his/her house and pays a commission for the service. In fact, the seller pays the total sales commission. He/she pays both the Seller’s and Buyer’s Agents commission. Moreover, the seller pays the total sales commission no matter the number of agents involved in the transaction. It doesn’t matter if there are one, two or three agents the seller pays the same commission rate. This is negotiated up-front when the seller lists his/her house for sale. Buyers do not pay for any part of the sales commission, and do not get a discount for working with the Seller’s Agent. In fact, they usually end-up paying more because they don’t have proper representation. Remember, the services of the real estate agent are always free to the buyer.
Be careful when you choose an agent. Most agents in Marin County represent both buyers and sellers. This dual role can create a serious conflict of interest. Moreover, representing a buyer vs. a seller are extremely different jobs with a very different skill set. Sellers should definitely work with an agent that specializes in listing property, and buyers definitely want to work exclusively with an agent that specializes in working with buyers. This is really the only way to ensure fair representation. Lastly, make sure to hire an agent who enjoys a sound reputation and good credentials. A good agent can make all the difference in the world.
For a complete rundown of the buying process, check out our Buyer’s Guide… Learn More >>
