{"id":3510,"date":"2024-08-26T14:25:58","date_gmt":"2024-08-26T19:25:58","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=3510"},"modified":"2024-09-16T12:03:32","modified_gmt":"2024-09-16T17:03:32","slug":"whats-the-difference-between-a-buyers-agent-and-a-sellers-agent","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/whats-the-difference-between-a-buyers-agent-and-a-sellers-agent\/","title":{"rendered":"What\u2019s the difference between a Buyer\u2019s Agent and a Seller\u2019s Agent?"},"content":{"rendered":"\n<p>If you\u2019re new to home buying, you\u2019ll need to quickly understand the roles of buyer\u2019s agents and seller\u2019s agents. They\u2019re the power players in your property journey, and with the new <a href=\"https:\/\/tomo.com\/blog\/new-rules-on-agent-commissions-post-nars-disclosure-what-you-need-to-know\/\" title=\"NAR settlement shaking up how commissions work\">NAR settlement shaking up how commissions work<\/a>, it\u2019s time to get the full scoop. Let\u2019s break it down and arm you with the knowledge to make smart moves.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Buyer\u2019s Agent vs. Seller\u2019s Agent: what\u2019s the difference?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Buyer\u2019s Agents<\/strong>. As the name implies, they work for the buyer and are legally required to advocate for their interests. But, more than that, these agents are your ticket to finding the perfect home. They\u2019re in your corner from start to finish\u2014scouting properties, negotiating deals, and guiding you through closing. They\u2019ve got the insider info on market conditions and help set a fair offer price. They\u2019re all about getting you the best terms\u2014price, contingencies, and closing costs\u2014so you can snag your dream home without a hitch.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Seller\u2019s Agents<\/strong>. They work for the seller and it\u2019s their job to sell the house quickly and for the highest possible price (or whatever the seller wants to prioritize). They handle everything from listing your home and marketing it to organizing open houses and showings. They\u2019ll advise on setting a competitive price and negotiating offers. They also manage the entire transaction, ensuring everything\u2019s legal and smooth until you close the deal.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can one agent represent both buyer and seller?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Yep, it\u2019s called dual agency.<\/strong> One agent can represent both sides in a transaction, but it\u2019s not as simple as it sounds. Dual agency means the agent is supposed to balance interests, which is strictly regulated to ensure fairness. They need to disclose this role and get consent from both parties. It might streamline the process, but you\u2019re missing out on having a dedicated advocate fighting just for you.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why go with separate agents?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Dedicated Representation:<\/strong> Each agent is laser-focused on their client\u2019s goals. The buyer\u2019s agent is all about finding the best property and negotiating the best terms for you, while the seller\u2019s agent is out to get the highest price and best terms for their client. This ensures each party\u2019s needs are fully addressed.\u00a0<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Reduced Conflicts of Interest:<\/strong> Separate agents mean no split loyalties. Each one is solely dedicated to advocating for their client\u2019s best interests, reducing potential conflicts that can arise in dual agency situations.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Enhanced Negotiation:<\/strong> With separate agents, negotiation is on point. The buyer\u2019s agent works to get you favorable purchase terms, while the seller\u2019s agent fights for the highest sale price and best terms. This balanced approach can lead to better outcomes for both sides.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Increased Expertise and Focus:<\/strong> Specialized agents mean more expertise. The seller\u2019s agent hones in on marketing strategies and pricing, while the buyer\u2019s agent zeroes in on finding properties and navigating the buying process.<\/li>\n\n\n\n<li><strong>Better Communication:<\/strong> Separate agents mean clearer communication. Each agent handles their client\u2019s concerns directly, ensuring effective and efficient dialogue throughout the transaction.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>While dual agency might seem like a one-stop-shop, separate agents offer more dedicated representation and better negotiation, making for a smoother transaction. Of course, all this assumes that the agents are on the level and not just looking out for their own interests (e.g., selling faster than they should or pressuring you to buy when it might not be the right time). It\u2019s important to find someone you trust.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How much do agents make in commission?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Traditionally, real estate agents earn about 5-6% of the home&#8217;s sale price, split between the buyer\u2019s and seller\u2019s agents. For a $450,000 home, each agent would make about $11,250 to $13,500.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>But hold on\u2014the <a href=\"https:\/\/tomo.com\/blog\/new-rules-on-agent-commissions-post-nars-disclosure-what-you-need-to-know\/\" title=\"NAR settlement is changing things\">NAR settlement is changing things<\/a>. The buyer\u2019s agent might now negotiate their commission directly with you, which could mean a flat fee, a percentage, or an hourly rate. Just know that they <em>used<\/em> to make about that much.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How does commission differ for buyer and seller agents?<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Things are shifting.<\/strong> Historically, both buyer\u2019s and seller\u2019s agents received around 2.5-3% of the home\u2019s sale price each. With the new NARS settlement, the buyer\u2019s agent will need to negotiate their commission directly with you. This could mean more flexibility but also more negotiation. The seller\u2019s agent is likely to stick with the traditional commission rate, but the buyer\u2019s agent\u2019s commission is now up for discussion, along with who pays it. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Buyer\u2019s market vs. seller\u2019s market: how commission negotiations vary<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>In a buyer\u2019s market, where there are more homes than buyers, you might have more leverage to negotiate with sellers to cover the buyer\u2019s agent commission. Conversely, in a seller\u2019s market with high demand and fewer homes, sellers may not need to offer such concessions, leaving buyers to cover the commission.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Stay sharp and adapt to the new rules. Understanding the roles and changing pay structures of buyer\u2019s and seller\u2019s agents is essential. But it also means you\u2019ll need to do your own homework and be careful about what information you trust.&nbsp;<\/p>\n\n\n<div style=\"padding-top:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);margin-left:0;margin-right:0;\" class=\"has-link-color wp-elements-c54b177fd5d2f341f8967a20726f2ac0 wp-block-post-author has-text-color has-contrast-color has-background has-tertiary-background-color has-large-font-size\"><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\"><a href=\"https:\/\/tomo.com\/blog\/author\/clairegtomonetworks-com\/\" target=\"_self\">Claire Gallaudet<\/a><\/p><p class=\"wp-block-post-author__bio\">Claire is a Mortgage Analyst at Tomo, where she explores the data and trends shaping the housing market. She is especially interested in how economic forces impact homebuyers. A Seattle native, she now lives in Austin, where she balances analysis and communications with teaching yoga and walks around the lake with her dog.<\/p><\/div><\/div>\n\n\n<p>If you&#8217;re ready to start your journey to homeownership, <a href=\"https:\/\/tomo.com\/mortgage\/app\/preapproval\" title=\"\">get pre approved with Tomo Mortgage today.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re new to home buying, you\u2019ll need to quickly understand the roles of buyer\u2019s agents and seller\u2019s agents. They\u2019re the power players in your property journey, and with the new NAR settlement shaking up how commissions work, it\u2019s time to get the full scoop. Let\u2019s break it down and arm you with the knowledge [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":3759,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[13,38],"tags":[68],"class_list":["post-3510","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying-guide","category-mortgage-dictionary","tag-pre-approval"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2024\/08\/buyer-vs-seller-agent-tomo-jpg.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/3510","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/comments?post=3510"}],"version-history":[{"count":2,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/3510\/revisions"}],"predecessor-version":[{"id":3559,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/3510\/revisions\/3559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media\/3759"}],"wp:attachment":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media?parent=3510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/categories?post=3510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/tags?post=3510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}