What does "agency" mean when working with a real estate agent? It's an excellent question because most buyers and sellers do not understand the concept of agency. Here are 3 of the most important ones:
1. A buyer's agent represents the buyer in the transaction and is paid by the seller in a Pennsylvania real estate transaction. Real estate agents who are also Realtors follow a code of ethics which means that the agent acts in the best interest of the buyer- first and foremost.
2. A seller's agent represents the seller in the transaction and is paid by the seller. Again, a realtor (separate designation) will act in the best interest of the seller-first and foremost.
3. Dual agency is when an agent represents both the seller and buyer in the same transaction. The agent in this case must walk a very thin line while acting in the interest of both buyer and seller. Dual agency can occur frequently with internet leads. The potential buyer's often contacts the listing agent from internet advertisements to ask questions regarding the listing. Also a lot of real estate investment classes teach students to work exclusively with the listing agent for the potential of landing a better deal.
Share your thoughts on agency.
Deborah Spence
Weichert Realtor
http://www.deborahspencesoldit.com
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