Types of Real Estate Agents

Real Estate Agents can help in finding and selling a home, but real estate agents have to be paid. Agents have access to computer databases containing information on all regional property sales and can accurately ascertain the value of property in any area. In transactions where there is a Real Estate Agent representing the Seller, the Seller normally pays the agents out of the sale proceeds (though this may vary by region). However, if the Seller is selling the home without an agent, then the Seller may not be willing to pay the Buyer’s agent. The Buyer may have to pay the agent himself. When a Buyer is considering obtaining an agent, the Buyer should question the agent on how the agent’s fees will be paid in the even that the home purchased is "For Sale by Owner."

Seller's Agent.
A Seller's agent represents only the seller, and has no duty to potential buyers other than those prescribed by law, such as (in most states) to reveal any home defects the agent is aware of to the Buyer. The Seller's agent is typically paid by the Seller from the proceeds of the sale of the property. An agent can be very helpful to the Seller in setting an accurate price for the property due to the agent’s knowledge of the local real estate market.

The Seller’s agent, while helpful, must be paid a commission from the proceeds of the sale. The fee is negotiable, but through typical Real Estate firms is 6% of the sale price of the property. When working with a traditional real estate agent, if your home sells for $200,000, $12,000 will be paid in commissions at closing! This is money that you would be keeping for yourself if you sold your home without an agent or used the discounted services of our affiliated agency. Selling without an agent requires being home more often during the day to show the house, meet inspectors, etc. (difficult if you and your spouse work), and requires you to take on the other procedural responsibilities such as scheduling termite inspections, providing counter-offers, etc. that would typically be handled by your agent. Your assigned agent could be a valuable resource for you in setting the price on your house and advising you about the local housing market (whether it is busy, slow, etc.), and how this should affect your mindset in regards to price. An agent is nice, but so is keeping that 6% of your money! Your decision on whether or not to use an agent will depend on your circumstances and priorities. The benefit to being an ABetterWay.com member is you can choose the level of support you wish to receive (if any) from a professional real estate agent depending upon your personal circumstances.

Buyer’s Agent.
A Buyer’s agent represents only the Buyer, and has no duty to the Seller. In a traditional listing, the Buyer’s agent is paid by the Seller from the proceeds of the sale of the property (part of the 6% paid by the Seller to the listing agent is paid to the Buyer’s agent). A Buyer’s agent can be very helpful to the Buyer in determining whether a fair price is being asked by the Seller, due to the agent’s knowledge of the local real estate market. If the Buyer’s agent is going to be paid by the Seller (clarify this at the outset), there is no real downside for a buyer using an agent and a lot of potential benefit.

"Dual" Agent.
A dual agent is a real estate agent who represents both buyer and seller. The dual nature of the agency relationship is typically disclosed in a disclosure statement given to each party, which must be agreed to and signed by each party. The agent facilitates the sale, working for both parties, but does not have a higher duty to one party than the other.