What’s a Homebuyer to do? Listing Agent VS. Buyer's Agent!

What’s a Homebuyer to do? Listing Agent VS. Buyer's Agent!

Are you planning on buying a home? Are you versed in the intricacies of agency disclosure? Do you understand the concepts of a seller’s and buyer’s agent? If you’re planning on buying a home, I strongly suggest you understand the intricacies of agency disclosure "as well as" you understand the differences between a seller’s agent and a buyer’s agent.

Agency Disclosure.

In California, existing law requires selling and listing agents to provide the seller as well as the buyer in a residential real property transaction with a “disclosure” form. The disclosure form contains general information on real estate agency relationships.

The existing law also requires the selling or listing agent to disclose to the seller and buyer whether she or he is acting as the seller’s agent exclusively, the buyer’s agent exclusively, or as a dual agent representing both seller and buyer.

Listing/seller’s agent.

The listing agent also is known as the seller’s agent represents the seller in their interest in the transaction. The seller hires the listing agent to market as well as sell their home.

The listing agent has a fiduciary responsibility to sell the home for top dollar in the shortest period. At all times, the listing agent fiduciary goals and loyalty remains with the seller.

Buyer’s agent.

Buying a home is not only an emotional experience but also buying a home is a major financial purchase, too! And because buying a home is a major and complicated transaction, most all homebuyers seek independent assistance from a buyer's agent.

A buyer's agent sole fiduciary responsibility is to the buyer. A buyers agent works alongside the buyer during the home buying process. A buyer’s agent helps educate buyers on the marketplace, preview homes and works closely with the buyer to write up and present offers to sellers. Once an offer is accepted, the buyer’s agent protects and stands by the buyer’s side throughout the entire home buying process.

Dual agent.

In California, sometimes the buyer may forgo a buyer’s agent and choose to work directly with the listing/seller’s agent. In this situation, both buyer and seller must agree to the dual agency in writing, in advance. It is believed (by some) to be impossible for the dual agent to be completely loyal to both parties. But in reality, the dual agent is bound by a fiduciary responsibility to be loyal to both buyer and seller and is very capable of doing so (IMO.) With that said, in dual agency, the dual agent doesn’t have to disclose to the buyer what they don’t know (and or) anything that’s hidden and that they are not aware of beyond the surface. Whereas a buyer’s agent has a legal obligation to go the extra mile and go above and beyond and help point possible hidden problems not observed on the surface. (Keep in mind – a buyer’s agent is not a home inspector but “if” they have a lot of experience they will know much more than a typical buyer about hidden issues the home may have.)

Who pays for the agency?

When the transaction closes escrow, the seller pays the agent and or agent’s commission. If there is a seller’s agent and buyer’s agent, then the agent’s split the commission. But in the event, there is no buyer’s agent, and there’s dual agency, the dual agent gets the entire commission.

I hope you find this information helpful. Most importantly, buying a home is a complex process, and finding exactly what you’ve set your heart upon can be intolerable without the skills and expertise of an experienced real estate agent. So before you purchase a home make sure you understand every aspect of the home buying process. I am an experienced Long Beach Broker, and I will love to help you land the home of your dreams. So before you start your home buying journey, contact me at (562) 225 - 2296.