If you’ve never bought or sold Real property, or it’s been a while, then this topic is for you. What the heck is the difference between a buying agent and a listing agent?
I get asked questions all the time regarding how my role changes when representing a buyer or a seller. There are key differences with each role but let me begin with the similarities when representing a client in a real estate transaction!
Firstly, we are all able to do both. Help people sell, and help people buy. Because of this, we owe the public certain fiduciary duties which we disclose very early on in relationships with clients and potential clients, like at an open house.
These duties are:
Loyalty (we will only act in your best interest)
Full disclosure (we must tell you everything we know which might influence your decision-making)
Confidentiality (what you say to me remains private… forever!)
Avoid conflicts of interest (for example if I’m selling your home, and a buyer of mine wants to purchase your home). This is especially important as dual agency (representing both sides of the transaction) isn’t allowed in B.C. unless you meet very narrow exceptions criteria.
We all have the same process for getting licensed and are required to work under a brokerage and maintain educational requirements to stay licensed in B.C. So although some agents prefer to work with buyers and others with sellers, we have the ability to help you with either.
Your Buying Agent
Your buying agent is the person who will walk you through purchasing a home. Sometimes, after a sale, you will hear them referred to as the “selling agent”. One major difference with a buying agent relationship is it’s not always contractual. This will depend on how your realtor conducts their business. You may meet and agree to work together and go through the entire process without a signed contract to work together. Others will include this as part of their business model and you will sign what’s called a “Buyer’s Agency Exclusive contract”. This is simply an agreement that you (the client) will only work with that agent for the purchase of your home.
Remember that these are all relevant factors when deciding who you’d like to team up with so make sure you’re asking all of the right questions. (Hint: find a free download on the main page of this website called "Questions to Ask Your REALTOR® When Buying Your First Home")
Something to remember is that the commission is paid to a buying agent from the seller’s side of the transaction. So, though usually you aren’t paying them directly, this is important to know if you are looking to buy a for sale by owner home or a home being represented by a discount brokerage. The commission or the difference of commission your agent charges (there are no set standards) will still need to be paid… which probably means you’ll be responsible.
Your buying agent will be the person you go to when you want to view homes, as they will organize the showings and go with you, and subsequently negotiate on your behalf once you’ve found the home you want to offer on. They’ll walk you through the writing of your contract, to the steps you take after your offer is accepted, all the way to completion and ultimately possession day!
Your Listing Agent
The agent you chose to represent you and your best interests in the sale of your home is called the listing or “seller’s” agent. Contrary to a buyer’s agency relationship, once you’ve found the agent you want to work with you will be presented with a listing agreement, which is a contract. This contract is between you and your agent’s brokerage, where your realtor is assigned as the “designated agent”. The agreement will not only outline all aspects of the sale of your home such as price, commission, and terms but also what’s called a “schedule A” which are the services your realtor commits to providing to you.
Services your REALTOR® will offer you are marketing your home for sale, coordinating showings and representing you in the negotiation process. They’ll also arrange open houses to present your home to potential buyers. Which leads me to another way buying agents and listing agents differ during an open house:
If the agent holding the home open represents the seller, it can be quite challenging as remember, they have agency with the seller and all the fiduciary duties that come with that. If they hear any information from a potential buyer they must disclose it to their client. For this reason, listing agents will often have another agent hold the Open. This agent will be able to assist any unrepresented buyer who shows interest in the home, as they aren’t obligated to disclose information to the sellers. But, they must still make full disclosures to the public entering the open house regarding their duties as an agent so expect to see a disclosure document.
Hopefully this helped clarify your real estate agent’s role, whatever side of the transaction you are on!
