A Buyer Calls 
From time to time people call me looking for the listing agent on a home. I think some people think if they are talking to the listing agent they will be able to get a better deal or that the listing agent may have some inside information on the home or even that it really doesn't matter who I talk to as long as they can help me buy this home. When I hear a caller is looking for the listing agent my perspective is they don't really understand agency as it relates to real estate and what they could be giving up if they deal with the listing agent. When this happens I inform the caller about what they could be getting themselves into.
Upping the Ante
In the simplest form of agency in real estate equals representation or representative. An agent for a person or position is a professional in a profession that represents a principle or party in a transaction. It's very similar to an attorney representing you in court - an attorney can speak for you, ask questions for you, help you understand the law and consequences you are facing, and helps you follow the procedures of the often complex workings of the justice system.
The PlayersIn the world of real estate there are two primary types of agents and then two other roles those agents can play so let's look at the roles:
Listing Agent: represents the seller in a transaction. They are the real estate agent who has "listed" the home or made others aware that the home is available for sale. The listing agent represents the sellers and the seller's interest in the transaction. True, they may have insider information about the seller, the home, and other confidential information, but their loyalty is with the seller, so they're not going to reveal that information to buyers calling about the home.
Buyer Agent: represents the buyer in a transaction. A buyer agent works for the best interest of the buyer and their loyalty is with buyers they are working with. The best buyer agents are a fiduciary for their buyer which means they put their buyer's goals and benefit before their own.
Dual Agent: is sort of a hybrid of the two types of agents describe above; they represent and don't represent both sides at the same time. Sounds sort of confusing doesn't it? Dual agency often occurs when an agent has listed a home and
then a buyer becomes interested in purchasing the home they have listed. You might be asking myself how can they be loyal and maintain confidentiality of both sides?
Ideally they would forget everything they are aware of before becoming a dual agent and then share the same information with both sides. Of course that's not really practical so a dual agent shares any additional information they get from either side and often does not make recommendations to either side to maintain their middle ground. It doesn't sound like they can really represent you anymore other than moving paperwork back and forth any more does it? Some people have describe it like a double agent in the spy world... can either side trust the other? or the agent?
Designated Agent: represents the side of the transaction that their broker has designated them to represent. This often occurs when one agent representing a seller is working on a transaction with another agent representing a buyer in the same office. Each designated agent is assigned by their broker to fully represent either side while the broker acts a the middle man (Dual Agent) representing neither side. Each side has a trained professional who will be loyal to them, keep their information confidential, to speak for their side of the transaction, to benefit their side of the transaction, and ideally to be a fiduciary for their side.
Going All In
Agency relationships can be very confusing so it's best to ask your agent to more fully explain the relationships and who they are representing in any real estate transaction. The roles can change throughout one's relationship with a real estate agent so be aware that your agent could be representing the other side if it is their listing. The main key is to whom does an agent have fiduciary responsibility?
As a RVA HomePROfessional I have chosen to never do dual agency. Some agents think I'm crazy for saying this but it's the easiest way to lose a real estate license and when you hire me my fiduciary duties will always be with you. If I'm working with you as a buyer agent and you end up liking a listing I have I will refer you to a very capable agent who will represent you and your interests (be a fiduciary for you). If you happen to move on to another property I will be happy to begin representing you again. I see my responsibility as a RVA HomePRO to always put my clients interests, goals, and confidentiality ahead of my own. I would rather lose out on half a deal by referring that business to another agent than ever have anyone question my motivations or loyality.
If you want more information about how to select a great agent call, text or drop me a line and I'll send you my list of critical questions to ask any agent you are considering hiring. After all your agent will be representing you in likely one of your largest financial assets so you want to make sure you are well represented so go ahead and interview them with my questions as a starting point.
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