Buyer VS. Seller’s Agent: A Comparison

Mortgage News February 18, 2023

We often don’t distinguish between buyer’s agents and seller’s agents, but understanding the differences is crucial when choosing an agent. It is also possible to get confused by the terminology.

Buyer’s agents help buyers find properties, which is why they are also known as selling agents. Listing agents are agents who represent sellers.

Whether you decide to use a seller’s agent or not depends on your skills as a marketer and negotiator. If neither of these is your strong suit, you may not do as well as you would with an agent. Having an agent represent you can be even more important if you’re a buyer. Direct offers from buyers are not accepted by some sellers’ agents.

You usually have an exclusive representation listing when you hire an agent to sell your home. Those are the terms of your agent’s agreement with you as the seller. When you sign this agreement, your home will only be sold by the listing agent and only that agent will be compensated. The agent receives a percentage of the commission the brokerage receives, and the broker receives a commission. Whenever there is a deal for their clients to purchase a home through the seller’s brokerage, a buyer’s agent is compensated.

It is primarily their representation of different interests that divide a buyer’s agent from a seller’s agent. Whenever a buyer decides to purchase a home, their agent makes sure they are getting the best deal and the lowest price. Sellers’ agents want to make sure their clients receive the highest possible price for their homes. The seller’s agent can sometimes represent the buyer as well, but in some states it is illegal.

Agents can sometimes work for buyers and sometimes for sellers. This is a common practice among agents. However, some agents prefer to specialize in one aspect of the transaction more than others.

Although their roles differ, buyers’ agents and sellers’ agents share the same overall goals. A successful deal means representing their clients well and negotiating it successfully until it is closed.

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