Does Your Real Estate Agent Really Work For You? - By: Kristi Cole, Posted on: 2007-02-21

If you are thinking of buying a new home, be aware of the difference between seller, buyer and dual real estate agents. Using the wrong style of agent could affect the financial terms of the deal and have substantial legal implications. Read on to arm yourself with an understanding of the difference and how to use it to your advantage when buying a home.

There has been frequent discussions over the past few years about buyer's agents and seller's agents. Real estate law now obligates an agent to indicate who they are representing. This is more often than not done early in the process through a legal disclosure document that you must sign that idicates whether the agent is representing the buyer or seller. A seller's agents represent the seller. Most real estate agents who show and market houses are seller's agents. They may be friendly to you as a prospective purchaser, escort you around town to show you multiple homes and help you through the offer process. However, they normally are representing the seller and looking out for the interests of the seller. On the other hand, buyer's agents really effort for the purchaser and have a fiduciary responsibility to look out for the interests of the buyer. There are also dual agents, but we’ll come back to that in a moment.

Generally, this has nothing to do with who actually pays the agent. Why should you be concerned about this? If you are the purchaser, you want to use a buyer's agent because of the financial, legal and ethical implications. A seller's agent has a fiduciary accountability to the seller not to you as the buyer. This meansduring the negotiations a seller's agent will be aligned with the seller. Here's a real life explanation to help clarify. Suppose an agent learns that the seller must relocate for a new job, has become highly motivated and is now willing to accept $15,000 under the home's list price. If the agent is a purchaser's agent - aligned with you - he/she will be obligated and most likely excited to tell you this advice. However, if the agent is the seller's agent representing the seller - he/she will not have to divulge this advice to you and may keep secret the message initially in an effort to get the higher offer from you.

So then, what is a dual agent? Occasionally your will find an agent that says they are functioning in a dual role; indicating they are functioning as a purchaser and seller agent. Be cautious in this home sale/purchase. As a buyer you may want to stay away from a dual agent. In reality, the dual agent is unable to fully represent the buyer's interests without adversely affecting the seller and visa versa. There are some proficient agents that can operate effectively in the dual role. However, as a buyer, you should discern the prospective conflict. If you want the minimum price on a home, seek a respectable purchaser's agent whose loyalties are aligned only with you.

You may be wondering who ultimately pays for a buyer's agent. Generally the selling agent lists the property in the MLS ("multiple house service") and agrees to split the commission with the agent who brings the purchaser. Generally, the seller's agent and the purchaser's agent share the real estate commission 50/50. Accordingly, that although the buyer's agent is representing for you, the seller is actually paying for the purchaser's agent. Occasionally you may find a home where the selling agent will not agree to split the commission with the agent who brings the purchaser and in that case you would have to settle who will pay for the purchaser's agent.

Awareness of the financial, legal and ethical implications of buyer, seller and dual agents is important to you as a home purchaser. Prior to hitting the market to look for a new home, find yourself a respected purchaser's agent with at least 10-12 years of experience in your market. They will be aligned with your interests and have the experience to help you settle on the minimum price for the home.

Article Source: http://www.southerncaliforniarealestateagent.com/submit-real-estate-articles

Kristi Cole is a real estate and home remodeling expert at www.inhomeimprovements.com Webmasters and publishers, please feel free to use this article provided this reference is included and all links remain active.

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