With buyer’s agents becoming increasingly popular in Arizona, it can sometimes be unclear how their responsibility differs from that of a seller’s agent. Therefore, when acquiring or selling real estate in Arizona, it’s essential to understand the difference between these two agents.
Undoubtedly, terms like seller and buyer’s agent can be confusing, as they are sometimes used conversely. But, at their core, these terms are practically self-explanatory. So, to know which agent will suit your needs in real estate deals, breaking down and understanding these terms can be beneficial.
In this article, we’ll look deeper into the critical differences between a buyer’s and seller’s agent, including how each party can help you have a smooth deal when it comes to your real estate transactions.
Ready? Let’s get started!
The Key Difference Between Seller’s Agent And Buyer’s Agent
The critical distinction between a buyer’s and a seller’s agent is who they represent. A buyers’ agent works solely for the buyer to assist them in purchasing a property with little stress, while the selling agent works for the seller to help them sell their property for the maximum price achievable.
Overall, they’re both working to achieve the same aim – getting the transaction done – but with entirely different purposes.
It’s worth noting that an agent cannot legally represent (and accept a commission) from both buyer and seller in the transaction in Arizona – they can only act either the parties to avoid a conflict of interest. This is why there is relatively different term are different in real estate.
Now, let’s examine both terms separately for a deeper understanding.
First, Who Is a Buyer’s Agent?
A buyer’s agent also called a buyer’s advocate, is a neutral, certified real estate expert who exclusively represents the buyer. A property buyer employs this agent to assist them in passing through the purchasing process and help ensure they are acquiring a home reasonably, somewhat, on the ideal terms, and for the best price possible in the prevailing market.
A professional buyer’s agent will offer you unbiased, expert advice for every property they present without any obligation to any other property. And the additional advantage is because there is no hidden motive, a buyer’s agent can search wherever in the market, both private sales, advertised properties, and on- and off-market properties.
Duties of a Buyer’s Agent
- Assist buyers in finding good mortgage loan sources and help them get pre-approval.
- Help buyers evaluate the worth and value of a home before making a bargain.
- Guide buyers on the reselling potential of the property.
- Make appointments to inspect homes and drive buyers to these appointments.
- Attend inspection and assessment tours and help interpret results and negotiate inspection matters.
- Explain the average offer form and recommend whether they should request additional contingencies
- Suggest trusted home inspectors and advise for further inspections if necessary
- Help organize communication between the title officer, lender, buyer, and seller so there are no shocks at the closing table.
- Help with the closing process by ensuring the buyer has the correct documents.
Who Is a Seller’s Agent?
A seller’s agent, also known as a real estate agent, is the reverse of a buyer’s agent; rather than working and being paid by the buyer, the seller’s agent is employed by a homeowner who wants to sell their home.
They are usually responsible for organizing the sales process to obtain the best price and sale terms possible for the seller in the most efficient way possible.
The advantage of a seller’s agent is that they can act as a market reporter and share their knowledge and advice, saving a seller the stress of doing all the research and finding and negotiating with buyers.
They will elucidate what the market may pay for a property and recommend the most effective means to see potential buyers.
Because a seller’s agent has to present the property in the best way possible, they’ll regularly select the best pictures with alluring imageries and sell the property relying heavily on any optimism there is to offer instead of showing the buyers any negative sides.
Duties of a Seller’s Agent
- Offer sellers the first home consultation where they carry out a full walk-round and give recommendations on how to clean, stage, declutter, and refurbish to make the house more viable.
- Put expert signage on the property.
- Give seller referrals for contractors to do the recommended updates.
- Help in solving any title issues.
- Help the seller stage the home if they don’t employ a specialized stager.
- Assist seller value home appropriately to ensure it sells for the maximum cost in the fastest period.
- Host private tours and open houses on the property.
- Ensure buyers are pre-approved for a loan.
- Assist in coordinating communication between the title officer, buyer, and seller to avoid surprises at the closing table.
- Help with the closing process by ensuring the seller has the proper documents and understands what they say.
- Ensure the correct signatures are in the appropriate places.
Buyer Versus Seller Agent
1. Representing Different Interest
Seller’s Agent: Firstly, selling agents have their names on the billboard and are employed by a property owner to navigate the sales process. This includes making a sale on the best possible terms while acting in the seller’s best interests, although they also have to be fair to buyers.
Buyer’s Agent: A buyer’s agent is employed by a house buyer to help them navigate the buying process. They represent the buyer, helping them search for and buy the home.
A buyer’s agent encompasses all the cores to ensure the home is acquired reasonably and fairly, achieving the best possible result for the purchaser. They work in the buyer’s best interests, which implies putting the buyer first.
2. Negotiation Is Key
Seller’s Agent: A buyer without a buyer’s agent works with a selling agent directly; often, the odds will likely be in the seller’s favor in this case. This is because the seller’s agent is an expert who negotiates property transactions daily and understands the contract’s tricks, plus they aim to accomplish the best price for the seller.
Buyer’s Agent: On the other hand, buyer’s agents work on even ground with selling agents. Both are real estate experts usually negotiating property transactions and are experienced in practice. This assists your buyer’s agent works to find the property on your terms and at the best possible amount.
In fact, buyer’s agents enjoy the benefit of negotiating as they are not committed to any property and can walk out and take you to another property you like at any time.
3. Listing Versus Whole Market
Seller’s Agent: Generally, the seller’s agent’s responsibility is to sell their listings as property owners hire them to perform a successful sale, or they might present other agents’ properties as well.
Buyer’s Agent: The buyer’s agent is not dedicated to any other property and is free to search all markets – including off-market properties, private sales, and properties advertised with agents. Their purpose is to get the best property for you.
4. The Good and The Bad
Seller’s Agent: The selling agent will display the property in the best light possible to buyers. This’s their duty as the owner’s sales representative. Thus, they will pick the most attractive images and descriptions. But it’s not the selling agent’s job to identify the negatives to the potential buyer unless it’s something serious.
Buyer’s Agent: The buyer’s agent is saddled with the responsibility of giving you an unbiased and professional recommendation for every property they present. They should point out the good and bad to enable you to make a well-informed decision knowing the positive and the negative.
From all instances, we can see that buyer and seller agents have similar goals but different responsibilities. They both want their client to have the best deal so that they will refer others to them. Educating yourself on their different responsibilities can assist you in interviewing potential agents and choosing who will offer you the best service.
Overall, whether you’re planning to sell your home or purchase a new home or asset, an agent can bring several values to the table and help achieve the best possible result suitable for your needs.
I believe this article has enlightened you on all you should know about the differences between buyer and seller agents. If you have further questions (s), contact me!