What you need to know about these real estate professionals…
When it comes to buying a property, it can be easy to assume that all real estate professionals are the same. However, there is a significant difference between a real estate agent and a buyer’s agent. Both play important roles in the real estate industry, but it’s essential to understand the key differences between them. In this article, we will explore these differences to help you make an informed decision about who to work with when buying a property.
What is a Real Estate Agent?
A real estate agent is a licensed professional who works as an intermediary between buyers and sellers of real estate. They are typically associated with a particular real estate agency and are responsible for marketing properties, handling inquiries, and negotiating sales. Real estate agents earn a commission on the sale of a property, which is typically a percentage of the final sale price.
Real estate agents work for the seller, and their primary goal is to get the best possible price for the property they are selling. They may provide some advice to buyers, but their loyalty is to the seller. They must comply with the laws and regulations in their state or territory, which usually requires them to disclose any information they have about the property to potential buyers.
What is a Buyer’s Agent?
A buyer’s agent, on the other hand, is a licensed professional who works exclusively with buyers. They are responsible for finding suitable properties, advising buyers on the purchasing process, and negotiating the best possible price and terms on behalf of their clients. Buyer’s agents earn a commission, which is typically paid by the seller, and they are legally bound to act in the best interests of their clients.
Unlike real estate agents, buyer’s agents do not have properties to sell. Instead, they work with buyers to help them find the right property that meets their needs and budget. They will typically conduct a thorough search of the market, including off-market properties, and present buyers with a shortlist of suitable options.
Key Differences between Real Estate Agents and Buyer’s Agents
Loyalty
Real estate agents work for the seller, and their primary loyalty is to get the best possible price for the property they are selling. In contrast, buyer’s agents work exclusively for the buyer and are legally bound to act in their best interests. This means that a buyer’s agent will work to negotiate the best possible price and terms for their client, while a real estate agent will work to get the best possible price for the seller.
Focus
Real estate agents typically focus on marketing properties, handling inquiries, and negotiating sales. Buyer’s agents, on the other hand, focus on finding the right property for their clients. This means they spend more time researching the market, looking for off-market properties, and conducting inspections with buyers.
Disclosure
Real estate agents are required by law to disclose any known information about the property they are selling to potential buyers. Buyer’s agents, on the other hand, are not required to disclose any information they uncover about the seller’s motivations or circumstances. This means that a buyer’s agent may be able to provide their clients with valuable information that is not publicly available, giving them an advantage in the negotiation process.
Experience
Real estate agents are required to have a real estate license and undergo training in their state or territory. Buyer’s agents, on the other hand, are typically required to have additional training and experience in property research, negotiation, and property buying. This means that a buyer’s agent may have more specialized knowledge and experience in the property buying process, giving their clients an advantage.
Commission
Real estate agents typically earn a commission on the sale of a property, which is paid by the seller. Buyer’s agents also earn a commission, which is typically paid by the buyer. This means that using a buyer’s agent may not necessarily cost more for the buyer, as the commission can be negotiated and factored into the overall purchase price.
Negotiation
Real estate agents are trained in negotiation skills, but their primary focus is on getting the best price for the seller. Buyer’s agents, on the other hand, are trained in negotiation skills that are specifically tailored to the buyer’s interests. This means that a buyer’s agent can negotiate on behalf of their client to get the best possible price, terms, and conditions for the purchase of a property.
Access to Properties
Real estate agents typically have access to properties that are listed on the market. In contrast, buyer’s agents have access to a wider range of properties, including off-market properties that are not listed publicly. This means that using a buyer’s agent can give the buyer an advantage in finding the perfect property that meets their specific needs and budget.
Overall, the key differences between real estate agents and buyer’s agents are in their loyalty, focus, disclosure, experience, commission, negotiation skills, and access to properties. While real estate agents work for the seller and focus on marketing properties, buyer’s agents work exclusively for the buyer and focus on finding the right property for their clients. They are legally bound to act in the best interests of their clients and can provide valuable information that is not publicly available, giving the buyer an advantage in the negotiation process. Additionally, buyer’s agents typically have access to a wider range of properties, including off-market properties, and can negotiate on behalf of their clients to get the best possible price, terms, and conditions for the purchase of a property. (want to know more about who we are and what we do, simply click buyers agent Ulladulla here)
