No matter the nature of your real estate needs, selecting an experienced real estate agent is vitally important in making the process less daunting. Understanding different types of agents and their areas of expertise will enable you to identify a professional that matches up perfectly with them for any particular property transaction.
Seller’s Agent
As part of any homebuying or selling transaction, it’s essential to understand the differences among real estate agents and how they’ll assist your property transaction. A seller’s agent will assist with marketing your home for sale while a buyer’s agent provides assistance during the search and purchase of new properties.
Seller’s agents (also referred to as listing agents) represent the interests of homeowners seeking to sell their property. Their task is to help their client set an asking price by researching similar homes in the area and current market trends, staging advice or repairs/renovations recommendations that can boost its value, counteroffers or negotiations until an offer comes through and finally negotiate the best price and terms possible for them.
Seller’s agents provide more than the services listed above; they also manage all aspects of real estate transactions from listing a property through closing paperwork and closing deals. It’s crucial that sellers select an agent who has experience and insight into the local market when selecting an agent as their representative.
Notably, seller’s agents must hold a valid license in order to perform their duties effectively. While some agencies claim to offer both seller’s and buyer’s agents services simultaneously, this form of dual agency is generally frowned upon in real estate industry as it creates conflicts of interests by acting for both sides simultaneously.
Buyer’s Agent
Buyer’s agents are real estate professionals that exclusively represent homebuyers to ensure their best interests are upheld throughout the purchasing process. They assist their clients in finding properties that suit their requirements, negotiate prices with sellers, and complete legal paperwork associated with property purchases. Furthermore, buyer’s agents often possess expertise on local areas as well as access to off-market properties.
They will take the time to understand your specific requirements, such as number of bedrooms and bathrooms desired, budget, and preferred locations, before efficiently searching the Multiple Listing Service database to identify properties which match these parameters. They will arrange viewings of relevant properties as well as inform you of open houses – saving you valuable time that would otherwise be spent trawling online listings or attending unscheduled viewings.
As part of the negotiation process, your buyer’s agent will use their expertise and market knowledge to secure you the best price and terms possible. They will closely examine sales data pertaining to similar homes that have either recently sold or are under contract – in order to help determine an equitable offer price for you target property.
Buyer’s agents serve as your advocates throughout the purchasing process, liaising with various professionals involved, such as seller’s agents, building and pest inspectors, mortgage brokers and conveyancing solicitors. In addition, they can advise when contract reviews are necessary as well as help draft contract documents.
Dual Agent
As many may already suspect, dual agents work for both buyer and seller clients simultaneously – creating an inherent conflict of interest wherein neither client’s interests can truly be represented accurately by this agent.
Agents often have an incentive to sell homes quickly, which would benefit both parties financially; but this may lead them to undersell your home at fair value and withholding information about both parties involved – in many states agents are forbidden from sharing confidential data between parties involved, to protect both of you from this.
At an open house as a potential buyer, it is likely you will encounter an agent representing the home seller. Even without signing an agency agreement with this individual, they could serve as your “dual agent”, becoming part of your network and potentially acting on your behalf as well. This scenario is one of many examples where dual agency occurs.
If you’re considering purchasing a home, be sure to express this to the agent and let them know you would like them as your agent. They should then ask whether or not you wish to enter a dual agency relationship and explain its pros and cons so you can make an informed decision. Furthermore, always request written disclosure from agents before entering such arrangements as this can protect you against unexpected surprises down the line.
Designated Agent
Real estate agents help buyers and sellers complete real estate transactions by applying their knowledge of the market, property values, negotiating skills, client relationships and negotiation tactics to real estate transactions. Real estate agents work in both residential and commercial real estate environments; typically specializing in specific areas or property types (for example: houses or apartments). Furthermore, they offer guidance, support and market insights for clients while adhering to all relevant real estate agency laws and guidelines as well as being aware of their brokerage’s representation model.
Designated agency refers to an arrangement wherein a broker assigns specific agents for both buyers and sellers in one transaction. While this can be beneficial for both parties involved, it can also cause confusion or conflicts of interests between the agents representing both parties involved. It is crucial that transparency and open communication remain at the forefront throughout this process.
Clients hiring designated agents typically enter into an agency agreement which clearly outlines their scope of representation and their fiduciary obligations to their client. It should also address how long the agent will provide services, any termination clauses they may include and how confidential information will be handled by them.
A designated buyer’s agent focuses on understanding their client’s requirements, advocating on their behalf, guiding property searches, viewings and negotiations while upholding undivided loyalty, reasonable care, disclosure, obedience to Lawful Instruction and confidentiality in terms of service delivery to their clients. Conversely, designated seller’s agents focus on marketing their property to potential buyers by accurately pricing it and negotiating favorable deals for themselves and the seller.
Broker
Real estate professionals must all hold valid licenses, with some possessing more advanced credentials than others. Real estate agents can earn their broker license after working a set number of years as agents and passing additional licensing exams successfully. Once licensed as brokers, they are then eligible to oversee other agents while earning a percentage of commission earnings in return. They may also move money between escrow accounts and mediate legal disputes related to real estate transactions.
Investment brokers differ from residential agents in that they seek out homes with potential financial gain. They work closely with buyers searching for rental properties or flipping properties as well as looking for property with commercial, industrial and retail space.
Real estate brokers can enter dual agency, acting both as seller’s or buyer’s agents depending on the transaction. When acting as seller’s agents, brokers can list and display properties for sale, communicate offers from buyers directly with sellers and aid with negotiation processes until closing occurs.
Brokers acting as buyers’ agents can search for properties that match a client’s criteria, negotiate prices and facilitate offer processing until closing. Real estate brokers may also choose to form special agencies, which provides them with authority to act for an individual transaction only.
Real estate brokers can operate either independently or establish their own brokerage firms, which allow them to hire other agents as employees while offering training, marketing support and office management support for them. Furthermore, these brokerage firms may specialize in particular niche markets or types of properties such as first-time homebuyers or luxury properties.