Real Estate Buyer’s Agent vs. Real Estate Seller’s Agent: Key Differences
Choosing the right property expert can shape the entire outcome of your purchase. While both buyer’s agents and real estate agents play key roles and their loyalties differ. At House Hunters, we guide buyers through this distinction to ensure they’re supported, informed, and positioned for the best result every step of the way.
Key Takeaways
- The Buyer’s agents work solely for the purchaser.
- The Seller’s agent works solely for the seller.
- A buyer’s agent gives you access to off-market opportunities.
- Negotiation outcomes differ depending on who represents you.
- Choosing the right agent protects your financial interests.
- Engaging a buyer’s agent or a seller’s agent takes some of the emotion out the negotiation stage, especially when buying an investment property.
The Role of a Real Estate Agent
A real estate agent is a licensed professional who can represent either the buyer or the seller in a property transaction but not both in the same transaction. By law, an agent cannot act for both parties simultaneously, as this would create a conflict of interest. Most agents choose to work primarily as either a buyer’s agent or a seller’s agent.
- Seller’s Agent (Listing Agent): Represents the seller, aiming to secure the best price and terms for the property owner.
- Buyer’s Agent: Represents the buyer, focusing on helping the purchaser secure the best property at the best terms.
Both roles involve similar qualifications and licensing but differ in their fiduciary duties. It’s important to know who the agent is working for in any transaction. Looking to ensure you’re fully supported? Reach out to House Hunters today and feel confident in your representation.
The Role of a Buyer’s Agent
A buyer’s agent is solely dedicated to representing the interests of the buyer throughout the entire purchasing process. Their role is to ensure that buyers receive unbiased advice and support, free from any competing interests. Looking to ensure you’re fully supported?
Reach out to House Hunters today and feel confident in your representation.
What a Buyer’s Agent Does:
- Locates properties that meet the buyer’s requirements and budget.
- Arranges private inspections and evaluations.
- Provides expert advice on market conditions and property values.
- Negotiates purchase price and contract terms on behalf of the buyer.
- Guides the buyer through paperwork, inspections, and settlement.
This exclusive representation ensures that the buyer’s interests are protected, helping them make informed decisions at every stage.
Buyer’s Agent vs. Seller’s Agent: Key Differences
Understanding the distinct roles of buyer’s agents and seller’s agents helps ensure that you’re properly represented in a property transaction.
1. Fiduciary Responsibility
- Buyer’s Agent: Has a fiduciary duty to the buyer, advocating solely for their best interests throughout the transaction.
- Seller’s Agent: Has a fiduciary duty to the seller, working to achieve the best outcome for the property owner.
2. Commission Structure
- Buyer’s Agent: The buyer typically pays the buyer’s agent’s fee. This may be a flat fee or a percentage of the purchase price, agreed upon before engaging their services.
- Seller’s Agent: The seller pays the seller’s agent’s commission, which is agreed upon when listing the property.
3. Market Knowledge and Guidance
- Buyer’s Agent: Specialises in identifying properties that meet the buyer’s needs and has insight into market trends from a buyer’s perspective.
- Seller’s Agent: Focuses on pricing, marketing, and selling properties, with market knowledge geared toward the seller’s advantage.
4. Negotiation Power
- Buyer’s Agent: Negotiates exclusively for the buyer, aiming to secure the best price, terms, and conditions.
- Seller’s Agent: Negotiates on behalf of the seller, focusing on achieving the highest price and most favourable terms for the vendor.
Should You Hire a Buyer’s Agent or a Seller’s Agent?
The decision depends on your role in the transaction:
- Buying a property? Engaging a buyer’s agent ensures you have a professional dedicated to protecting your interests, offering market insights, and negotiating on your behalf.
- Selling a property? A seller’s agent (or listing agent) focuses on marketing your property and securing the best sale price.
At House Hunters, we specialise in buyer’s agent services, providing exclusive support to property buyers. Our approach ensures your needs remain the top priority throughout your property journey.
Sometimes we get asked by property owners if we have a buyer for them. This usually happens when a seller wants to avoid or minimise agent selling fees. In this case, we always advise these sellers that we cannot act for them because our focus is on getting the best price for our client, the buyer.
Beware the buyer’s agent that agrees to do this because their usually is a conflict of interest in working with both.
Conclusion
Choosing between a real estate buyer’s agent and a real estate selling agent can significantly impact your property journey. One works in your best interest, the other for the vendor. If you value strategic guidance, market insight, and having an expert on your side from start to finish, a buyer’s agent is the smarter choice. Get in touch with House Hunters to secure your next property with confidence.
FAQs:
Do I need a buyer’s agent to purchase a property?
While not mandatory, a buyer’s agent offers strategic advice, market access (including off-market properties), and expert negotiation, ensuring your interests are protected.
Who pays the buyer’s agent?
The buyer pays the buyer’s agent, either via a flat fee or a percentage of the purchase price, agreed upon before engagement.
Can a real estate agent act as both the seller’s and buyer’s agent?
No. In Australia, an agent cannot represent both the buyer and seller in the same transaction. This would create a conflict of interest and is prohibited.
How do I choose the right buyer’s agent?
Look for a licensed agent with strong local knowledge, transparent fees, and a proven track record of successful transactions representing buyers.
