You also tell him that you are recently divorced and need to find a home ASAP. The agent suggests that he draw up an offer for you. The agent represents your interests because he is presenting the offer for you, right? WRONG.
you like. You call the Listing Broker to make an appointment to see the home. You tell her why you want to move and how much you’d pay for that home. The next day, you call the agent to tell her you want to submit an offer. The agent won’t tell the Seller your motivations and how much you’d be willing to pay for the house, right? WRONG.
In Connecticut, all Realtors work in the best interest of the
Seller – it’s the law. The Listing Agent (the agent who represents the Seller) has a primary duty to the Seller. The other Agent who finds the Buyer is working for the Seller too – unless he/she has signed a Buyer’s Representation Agreement with the Buyer which in effect makes him a Buyer Broker. A Buyer Broker’s duties are to you, the Buyer.
the Seller – the Listing Broker represents them formally through a written agreement, and anyone else (for example, the agent you found on Zillow or Trulia who agreed to show you a property) is a sub-agent to the Seller. Because their duty is first and foremost
to the Seller, their job is to get the best deal for the Seller. Agents do have to act fairly, honestly and with integrity with all potential Buyers, irrespective of who they work for- but they don’t for example, have to respect confidentiality.
the Agent is representing your interests exclusively; their goal is to get you
the best price and conditions. Buyer Brokers will share historical sales information
(which may be to the detriment of the Seller for example comparable that show they are overpriced) and make sure that your interests are protected at all times.
the Seller. If the Listing Agent represents both the Seller and the Buyer (we call this dual agency) he stands to make more commission (we call this ‘double-ending the deal’). If any commission discount is given, it’s given to the Seller, not the Buyer – so you likely don’t stand to profit from having the
Listing/Seller’s agent double-end the transaction. The Listing Agent will make more commission, the Seller will likely pay less commission, and you’ll just have no one looking out for you. How can that be a good idea?
of the proceeds of the sale. So you can have somebody work exclusively in your interests and get it paid by someone else!
Once you’ve picked someone to represent you (click here to find
out how to pick a great Realtor), ask to sign a Buyer’s
Representation Agreement confirming that THEY work for YOU. The Buyer’s
Representation Agreement is a two-way agreement: The Realtor agrees to represent you and work in your best interests, and you agree that if you buy a home in a certain period of time, that you will work with that Realtor.
From a Realtor’s perspective, the Buyer’s Agreement is a guarantee that if all the work we do for a Buyer results in a sale, we’ll get paid.