Agent Roles
During the home-buying process, real estate agents can play one of several different roles. Here are the ones you're most likely to see, as well as important advice about avoiding something called dual agency.
When you shop for a home, you usually work with an agent who will give you advice, help you tour, help you make an offer to the seller, and negotiate on your behalf. This is commonly referred to as the buyer's agent, though the technical term within the real estate industry is the selling agent. (We know... this is confusing. You might see the term selling agent on some paperwork, but most of the time, most people just say buyer's agent.)
Though the buyer's agent usually performs most of the tasks listed below, the first duty of a buyer's agent is to always act in the best interest of the buyer.
- Helps you tour homes
- Gives advice on homes
- Performs comparative market analyses (CMA)
- Gives advice on price & crafts your offer
- Negotiates with seller on price and repairs
- Helps you find inspectors, lenders & other service providers.
- Helps you deal with closing and contingencies
Choosing the right agent involves two steps; finding her, and making sure she's the right fit for your needs. Read our page on finding an agent to learn about both steps.
Just as the buyer's agent is supposed to act in the best interest of the buyer, the seller's agent (also known as the listing agent) works solely on behalf of the seller.
It's the job of the seller's agent to get the best deal for their client. Obviously, getting the most money possible for the sale is one way to measure success, but a good seller's agent will also try to sell the home quickly and with as little trouble as possible. After all, getting full price for a home sale might not seem worth it, if the sale stretches on for two years and involves the stress of half a dozen failed deals.
In general, the seller's agent performs the following roles:
- Gives advice on pricing, including a CMA
- Helps seller find stagers, photographers & other service providers.
- Markets the home to buyers
- Hosts open houses
- Negotiates with buyer on price and repairs
- Communicates with buyer's agents
- Helps seller deal with closing and contingencies
Tip!
Let's say you're at an open house. The agent showing the home asks if you have an agent, and you say no. The seller's agent says: "No problem! I can represent you and the seller at the same time."
Look out. You've just entered the world of dual agency.
Dual agency is bad news, especially for buyers. Think of it this way: it's the job of the seller's agent to get their client the most money possible for their home. How could that same agent also work to get a buyer the best deal possible? Add in the fact that the seller's agent usually makes a bigger commission when a home sells for more money, and the conflict of interest for a dual agent becomes very clear.
Our advice is simple: avoid dual agency. You should always have an agent who works solely on your behalf.
For some buyers, the best agent may be no agent at all. While we recommend that most buyers (especially first-time buyers) work with an experienced agent, only you can decide what's right for you.
For more perspectives on buying a home without an agent, see what people are saying in our forums.