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 Glossary of Terms
Seller's Agent
A seller's agent, or listing agent, is a real estate agent who is an independent contractor and represents only the seller in a transaction.
This agent's responsibilities to you, the seller, include:
Listing your property for sale and placing it (with your permission) in a Multiple Listing Service which provides you with a wide range of prospective buyers
Always acting for your benefit, and putting your interests abovethe interests of any other person
Protecting any confidential information which may weaken your bargainingpower
(an urgency to sell for example)
Familiarizing you with the purchase and sale process
Evaluating your property and offering suggestions to increase itsmarketability
Advertising your property with yard signs, newspaper, web sites or home magazine ads or other available media
Negotiating the best price and terms for the sale of your property, evaluating offers and suggesting counteroffers
Traditionally, all real estate agents represented the seller, however,there are consumer alternatives. Now, many real estate transactions involvesubagents, buyer's agents and/or dual agents. These alternatives are discussedbelow.
Subagent
Like the seller's agent, the subagent works for you. Although a subagentis often first contacted by a potential buyer, and works hard to help thatbuyer find the right home to purchase, a subagent represents the sellerduring purchase negotiations. A subagent is usually hired by a seller'sagent, and they typically split the commission on the sale.
Buyer's agent
A buyer's agent is a real estate agent who is employed by and representsonly you, the buyer, in a transaction. Although they work exclusively forthe buyer, their compensation can be paid in a number of ways - by thebuyer exclusively, the seller exclusively, or (most commonly) through acommission split with the seller's agent. Even if the seller or the seller'sagent pays their fee, buyer's agents must always remain loyal to the buyer.Buyer's agents can provide a number of services for you including:
Helping you determine how much you can afford to spend on a home
Explaining available financing options
Informing you of current real estate values, taxes, utility costs and other factors that will i influence your opinion abouta property
Using the Multiple Listing Service to locate homes that suit yourneeds
Selecting appropriate properties to view
Revealing any information about a seller or property which may affectyour purchase decision
Advising you on your offer
Presenting our offer to the sellers, and negotiating for the most favorable price and terms
Helping you to evaluate counteroffers
Although buyer's agents are the only agents who act solely with your interests in mind, there are other real estate professionals who can assist you in finding and buying a home. These consumer alternatives are discussed below.
Dual agent
A dual agent is a real estate agent who represents both the seller andthe buyer with the knowledge and written consent of both. Ultimately, dualagents work to sell homes, but they cannot give either you or the sellertheir undivided loyalty or disclose confidential information that eitheryou or the seller has told them. They operate under a duty of fairnessto both clients, rather than the duty of undivided loyalty. A dual agencyoccurs when the office or firm that is helping you find a home has a listingthat you are interested in. Even if the seller is working with a differentassociate from the firm, it is still considered dual agency. In the situationof dual agency, the agents cannot share without permission what price youwould pay for a property, or what price a seller is willing to accept.For you to buy one of the firm's listings, the agency relationship mustbe modified, or only one consumer can remain a client of the firm. However,the basic goals stay the same - the buyer wants to buy, the seller wantsto sell, and the agents want to finalize the transaction on mutually agreeableterms.
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