A lot of buyers out there do not fully understand the types of different agency relationships that exist and their relative importance.
There are essentially three types of agency relationships;
- THE BUYER AGENCY
A buyer brokerage or buyer agency is the practice of real estate brokers and their agents representing a buyer in a real estate transaction rather than, by default, representing the seller either directly or as a sub-agent.
- THE SELLER AGENCY
A seller’s agent or seller’s real estate agent is a professional who helps list the property for sale. The seller’s agent represents the person selling the property and holds allegiance to that party.
- THE DUAL AGENCY
A dual agency is when a real estate agent works with the buyer and the seller on the same transaction simultaneously. In this situation, if both the buyer and seller are in agreement that the same real estate agent can represent both parties, the realtor becomes a dual agent in the transaction. The biggest concern that should be on the buyers’ mindset when working with the seller’s agent to represent them in this “dual agency” is to get their sellers the highest price and best terms. What the buyer may not understand is that in order to put themselves in the best position for negotiation relative to price, repairs, and other terms, they need to have the best representation for their rights as a buyer that is in their interest exclusively.