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Who's Working for Whom? Do Buyers Know This?
When a Listing agreement is signed, the Listing Agent represents the seller.
If you have ever called on a 'For Sale' sign or on a newspaper ad to ask about a home that was being advertised, you probably spoke with the Listing Agent or Listing Office. The Listing Agent (Seller's Agent) is hired by the seller to advertise the property for sale and to find a buyer. Importantly, the Listing Agent has a written contract with the seller for marketing, property exposure and to represent the seller in negotiations. This includes obtaining the best possible price and terms and to make sure the contract is written so that the seller’s interests are protected. As a buyer, this is something you must keep in mind.
When a Buyer Agency Agreement is signed, the Buyer’s Agent represents the buyer.
The duty of a Buyer's Agent is to look out for the buyer’s interests. They represent the buyer just as a Listing Agent represents the seller. This will include assisting in the search for suitable homes, assisting with the necessary lenders process, obtaining inspectors for the property and other systems, managing the paperwork on the buyer’s behalf, negotiating the best possible price and terms and protecting the buyer’s interests throughout the entire process.
This service is usually free to the buyer, meaning that the Buyer’s Agent receives a portion from the Listing Agency or the Home Owner in certain situations. The Buyer will not usually incur that extra 'closing' cost for having a professional on your side.
So if you are buying real estate in the Lakes Region or the surrounding area, use a Buyer's Agent.
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It is a common misconception among homebuyers that the role of a real estate agent is the same from one transaction to the next. In reality, many buyers are not even sure what the role of a real estate agent is.
Since buying a home is such an important decision, being misinformed about this topic can have a impact on how well your home purchase will go. The real estate agent can be your opponent or your ally, depending on what type of agent you are dealing with.
The Listing Agent is legally bound to answer all of your questions regarding the property honestly. Buyers should never divulge any personal information that may give the seller a negotiating advantage. The Seller's Agent has to pass that information onto their client.
It is not because they are “out to get you,” but because that’s the law. This certainly gives the seller somewhat of an advantage, doesn’t it?
In New Hampshire, agents may represent both sides of a transaction as a Seller's Agent and a Buyer's Agent. Both the buyer and seller must consent to Dual Agency in writing when this occurs.
When a buyer asks the Listing Agent to write a contract and seeks Buyer Agency, the Agent needs to have the buyer sign an Dual consent form, normally the Seller has already agreed to Dual Agency at the time that the Listing Agreement was signed.
A Dual Agent shall be neutral in regards to any conflicting interest of the seller and the buyer. Never giving one an unfair advantage over the other.
A Dual Agency situation is always obligated to full disclosure of the property, confidentiality of information and accounting of funds. | |
