Whether you’re buying a home or selling one, hiring a real estate agent is the best way to secure a favorable deal. Agents normally act on behalf of their clients, but occasionally buyers and sellers meet agents representing the other side. Understanding the difference between a buyer’s agent vs. seller’s agent helps you navigate these interactions and make the best, most informed decision for you and your family. To make your experience as smooth as possible, this blog breaks down the differences between buyer’s agents and seller’s agents: what they do, how they work, and why you want one on your side.
Duties and Functions
No matter who they’re representing, a realtor’s primary responsibility is to obtain the best price for their client. While some real estate agents specialize either in buying homes or selling them, most have enough knowledge and experience to handle both sides of the transaction - though not at the same time. Their fiduciary duties prevent them from representing opposing parties (buyers and sellers), except in rare cases.
In some situations, realtors can act as facilitators rather than negotiators, allowing them to work with both parties as dual agents. Before entering into such an arrangement, however, realtors have to receive explicit, written consent from both parties. Dual agency is not permitted everywhere, however. To avoid conflicts of interest, it’s illegal in Kansas, Texas, Alaska, Vermont, Florida, Maryland, Wyoming, and Colorado.
Seller Agent Responsibilities
Sellers rely on real estate agents to devise their listing strategy. By analyzing sales of similar homes in your area, seller’s agents ensure you get the best price and your house attracts serious buyers. Besides putting your home on the market, they also work behind the scenes to generate demand and improve curb appeal. This may include:
Home Consultations. Prior to listing, your agent will likely perform a walkthrough, in order to suggest improvements that will raise the value of your home. In some cases, they may recommend contractors who can upgrade your house ahead of the sale.
Marketing. In addition to placing signage out front, many agents also create a webpage, complete with professional photographs or videos, to ensure your listing reaches as many potential buyers as possible.
Tours. They also host open houses and show the property to prospective buyers, highlighting its strengths and standout features.
Submissions. Your agent will sort through the offers you receive, advising you on their quantity and proposing counteroffers when necessary.
Closing. Once an offer’s been made, agents check whether the buyer is pre-approved and help clear up any title issues, if they exist. During closing, they ensure the buyer has the correct documents and coordinate communication between the lender, escrow officer, and real estate attorney to prevent last minute problems that might upset the sale.
Agents are paid on commission. The standard rate was previously 5-6 percent of the final sales price, taken from the sales proceeds at closing, after your home has been sold. However, that’s expected to change due to new rules passed in August 2024. Buying and selling agents used to split the commission, now they negotiate fees individually with their clients. As a result, rates may be slightly higher or lower than they were before.
Buyer Agent Responsibilities
Buyers rely on real estate agents to research listings and find homes that meet their criteria. Besides locating attractive properties, they review market conditions, so buyers know how quickly they need to make an offer and whether they should go above the listed price. Buying agents also assist their clients at every step, taking an active role in:
Home Search. Besides alerting you when houses go on sale, they keep you up to date on industry trends and help research neighborhood amenities such as schools, parks, shopping, etc.
Financing. Agents are familiar with local lenders and can put you in contact with a mortgage provider who can get you pre-approved for a loan.
Home Inspections. A realtor not only assesses the value of potential homes; they also schedule home inspections, to check for issues that may affect long-term costs and livability. If problems are found, they contact the seller’s agent to request repairs or negotiate a lower price.
Signing Day. Once your offer has been accepted, your agent will review the sales contract, as well as any supplemental documents, such as HOA agreements and title commitments. They also facilitate communication between the lender, title officer, and real estate attorney, ensuring there are no surprises during the closing process.
Like seller’s agents, buyer’s agents also work on commission. Until recently, the commission was paid by the seller and split between the two agents. However, according to new rules adopted by the National Association of Realtors, buyers are now responsible for paying their agents, with a fee negotiated ahead of the sale. Though the size of their commission hasn’t been standardized yet, at the moment it’s typically 2.5-3 percent of the purchase price.
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