Buyer and Seller Representation Basics

Choosing Your Real Estate Partner

Buying or selling a home can be complicated, involving large and small decisions. Choosing the right real estate agent to guide you through the process is one critical decision that can impact everything else.

From day one to closing, it’s critical to understand the roles and responsibilities of every real estate agent you encounter—and who they represent. Typically, real estate transactions involve two different agents:

• Seller’s Agent, who represents the seller’s best interests.
• Buyer’s Agent, who represents the buyer’s best interests.

FACT: Every agent must represent someone. If they don’t represent you, they represent the other party in the transaction. 

Simply put, you need to choose an agent who will be your partner, one who will represent you, prioritize your interests, and do so with complete transparency. 

What does a Seller’s Agent Do?

A listing or seller’s agent helps homeowners sell their homes. Their role differs from that of a buyer’s agent, with distinct responsibilities and workflows. These responsibilities include: 

1. Writing the Listing Agreement

The listing agreement is the contract between the homeowner and the listing agent. It authorizes the property to be advertised for sale, for a specific price and period of time, outlines the responsibilities of both parties, and details the compensation structure. 

2. Completing a CMA for Pricing the Home

Pricing your home can be confusing because the real estate market constantly fluctuates. 

The listing agent has the resources to calculate an accurate price for the home, considering market conditions and activity. They will complete a comparative market analysis, or CMA, to help them determine a fair price based on similar properties in the area. Learn more about what impacts a home’s value.

How we do your cutting-edge CMA

Do You Know Your Home’s Value in Today’s Market? 

3. Marketing the Home

Attracting buyers is one of your listing agent’s most important jobs.

There are numerous methods for preparing a house for the market, and some may be more involved than others in staging or getting your home ready for showings.

It is common today to have high-quality photos of the interior and exterior of your home to create an appealing listing. They may also host an open house so buyers can see the property.

4. Negotiating and Closing the Sale

Your listing agent should be an expert in negotiating home sales. They should know what a reasonable offer is for your neighborhood and be able to negotiate effectively at your direction without losing out on an offer.

Negotiations apply to both sides—Buyer and Seller Representation—and are equally important!

Once you’re ready to accept an offer, your Realtor® will walk you through the closing process and assist you in gathering the documentation needed to close the sale.

What Does a Buyer’s Agent Do?

A Buyers Agent helps people find and purchase a home. This is buyer representation, and the agents work from the early stages of the process until closing on the new house. Here are the main responsibilities:

1. Searching for Homes That Meet the Buyer’s Criteria

Most home buyers generally know what they want in a house. You probably have some criteria regarding the location and size of the home. Your buyer’s agent has access to multiple listing services, which include detailed information about available homes in your area.

Based on your criteria, they can narrow down the search and find houses that best fit your needs and price point.

2. Touring Homes With Buyers

Your buyer’s agent will get access to homes and accompany you to see them. They are real estate experts, so they’ll offer valuable information and advice while you evaluate the homes.

Often, they can point out red flags in properties that prospective buyers don’t notice on their own. They can also point out favorable qualities in a house that may be overlooked by the layperson.

3. Making And Negotiating Offers

They are experts at negotiating. With buyer representation, they can help you get the best deal on a property by making an offer that’s appealing to the seller yet not excessive.

If you end up in a bidding war with another buyer, your agent can help you navigate the process, and they’ll advise you when it’s time to move on and search for another home.

4. Connecting Buyers With Other Professionals

After you are successful with an offer, you’ll need the services of several other professionals, including a mortgage lender for a home loan, a home inspector to check for problems with the property, a title company, and other entities.

Your buyer’s agent is familiar with all of the steps that go into buying a house, and they probably know the best people in your area to work with. They can connect you with the professionals you need and help to streamline the process.

Learn More About Buyer Representation

Intermediary

In rare cases, one Realtor® acts as both the listing agent and the buyer’s agent for a home sale. This is known as an intermediary, and it can make the experience faster and easier for both the buyer and seller.

That agent must remain completely neutral without disclosing confidential information to or from either party and they must treat both parties honestly and fairly. The disadvantage is that this can restrict their help with negotiation.

The Bottom Line

Buyer or seller representation is an equally important role that you, the consumer, must understand from day one! The seller’s and buyer’s agents play key roles in selling a home, but their responsibilities differ greatly.

Both strive to make the experience as easy as possible for their clients, be they buyers or sellers, and both try to get their clients the best possible deals. Some Realtors® primarily work as one type of agent, and some offer both services.

If you’re looking for a Realtor® to represent your best interests when buying or selling a home, the most important thing is to work with someone you can trust and feel comfortable with.

EDITOR’S NOTE: In the real estate business structure, brokers are responsible for agents, and all agreements are signed on behalf of the broker. The term agent is used throughout for simplification. 

North Point Realty – Serving the Dallas area since 2002

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