Who represents you in the purchase of real estate is critical. Take a few minutes to read about the role of the listing agent verse the buyer’s agent.
The California Real Estate Purchase Showdown: Listing Agent Verse Buyer’s Agent
Who should you call when it is time to buy?
The Listing Agent
When the agent represents the seller of real estate, they are known as the listing agent (seller agency) of the property. This agent represents the best interests of the seller and has a goal to help the homeowner get the highest and best price for their property.
The Buyer’s Agent
When an agent represents YOU and did not list the property, they are a buyer’s agent with the goal of helping you get the lowest and best price. As your buyer agent, we are looking at for your best interests.
The seller pays the buyer’s agent’s real estate company a commission so there is no cost to you.
Your buyer agent will share with you everything that they find out from the listing agent so you have someone on your side when purchasing real estate. Call Jay Valento (562-413-7655) to arrange a free 30 minute buyer consultation to learn the benefits of having your own agent to represent you.
Buyer Agency happens in one of two ways:
- First, the buyer agent can have a written agreement with the buyer to represent their best interest. That agreement is known as a buyer broker agreement. It dictates what the agent is to do for the buyer to acquire real property. The buyer agent represents the best interests of the buyer (who of course, wants the best value for their money).
- A buyer can work with an agent without a buyer broker agreement but there are limitations on the relationship. If there is no agreement in place, then the buyer agent, is really a sub-agent of the seller’s agent. And, the seller’s agent’s job is to get the seller the highest price. That’s why a buyer broker agreement is so important.
Here is what Money Magazine says about Buyer Agency:
“Buyers average a 5% savings when represented by a Buyer’s Broker, rather than a sales agent”
U.S. News & World Report says:
“If you agent isn’t a Buyer Broker, then he works for the seller.”
Transactional Agency or Dual Agent
But, you should watch out for agents who want to act as transactional or dual agents representing both parties, buyer and seller, in a real estate transaction. It is hard to do this and look out for the best interests of both clients.
If you were in a lawsuit, would you hire your opponent’s attorney? Of course not. You would want your own attorney to represent you.
The same is true in real estate. Hire your own buyer agent…and it’s free…imagine that.
Frequently Asked Questions:
Q.) Are all of the listings on your website, your listings?
A.) That would be great but no. We are able to market all of the current real estate listings for sale on our website www.redwagonteam.com All of the real estate companies work together to sell each other’s listings.
Q.) Won’t I get a better deal if I go with the Listing Agent?
A.) No. The listing agent’s job is to get the seller the highest and best price. The listing agent does NOT decide what the property will sell for. The selling price is determine by what a buyer is willing to pay and a seller is willing to accept. As your buyer’s agent, our goal is to help you get the lowest and best price.
Q.) I want to go with the listing agent because they know more about the property.
A.) Maybe. I have talked to many of them that do and some that have no clue about certain aspects of the property. Plus, they usually tell your buyer’s agent additional information about how flexible their seller is. And we will share that information with you…
For example, I showed homes in Yorba Linda in Orange County on February 8th, 2014. One of the homes was listed for $799,000 and the seller’s agent told me that they would take $750,000 to $760,000. I told my client, the buyer. I want the best for my clients.
- I’m considering an investment property in Arizona and I have an agent in that area that is working as my buyer’s agent. I want someone who is working for me and not bias toward the seller.
Q.) How much does it cost to hire my own buyer’s agent?
A.) Nothing. The seller pays our real estate company a commission at the close of escrow for representing you as your buyer agent. How cool is that?
Let’s Meet and Talk About Your Real Estate Plans
We can meet for coffee and talk about your real estate plans. I have a 50 page Red Wagon Team Home Buyer’s Guide that we put together over the last 24 years that will give you some insights into a buying a home in Southern California. I will give you a free copy when we meet. What time is good for you?