Confusing? Yes! This article will answer your questions and clarify what they do.
Real Estate Agents
Real Estate Agents represent home sellers in:
- Marketing the property for sale (photos, advertising, property staging).
- Conduct a market appraisal based on recent area sales.
- Create interest amongst buyers.
- Negotiating the highest price via auction or private treaty.
- Paid a commission by the seller / vendor.
The reason of hiring them: Manage all aspects of the property selling process. This includes professional photographs, advertising on multiple platforms and putting together a selling strategy (auction or private sale).
Conducting open for inspections and building interest amongst buyers and negotiating the sale.
The real estate agent should have the best practice to guiding their clients though a complex selling process.
Negatives: have a bad reputation of not being honest. The industry has a low barrier to entry, hence many agents lack proper real estate experience.
How to hire a good real estate agent: Seek agents that work hard for a sale, they’re happy to show many buyers privately through their listings
There properties are presented well with professional photos, effective marketing campaigns with neat and clean open for inspections.
They have a history of selling properties, at least two per month. With a high volume of positive reviews.
Buyer’s agents represent homebuyers in all the activities of buying a house. A buyers’ representative. Hence, buyers have no need to deal with real estate agents.
- They will choose the best property from everything on the market. Source off-market listings and publicly advertised properties.
- Offer property investment advice.
- Determine the market value of a property.
- Negotiate the lowest price and terms for the buyer via private negotiation or auction.
- Arrange building inspections and attend the final settlement of a property.
- Paid a commission or fee by the property buyer.
The point of hiring them: Shorten your time on the market and secure the right property for the right price.
A good buyer’s agent will save their clients money and source a great property by leveraging their market experience.
How to hire a good buyer’s agent:
Like with anything in life, experience makes all the difference when it comes to getting the best outcome. Make sure your buyer’s agents:
- Are properly qualified, preferably fully licensed real estate agents that have experience with selling houses and a minimum of 2 years of buyers’ agent experience. For more info, follow this link on buyers agents’ qualifications.
- Have a history of buying properties, at least two per month.
- Many current five star reviews on their website.
Watch out for limitations:
– Some mortgage brokers claim to be buyer’s agents yet have no experience in real estate.
– Real estate agents claiming to be buyer’s agents (a conflict of interest)
– Family members that think they’re buyer’s agents simply because they have purchase a property in the past.
How They Work With Each Other.
How real estate agents work with buyer’s agents: A great source of a credible, qualified buyer. Estate agents cut to the point when dealing buyers agents, as both parties understand the property market and how real estate agents archive the maximum selling price.
How buyer’s agents view real estate agents: source of off-market properties for sale, facilitate private inspections for properties on the market and being vendors / property sellers representatives.
Selling Agents and Buyer’s Agents work together for a mutual benefit, achieving a property sale or purchase.
Without the skills of the selling agent, a buyers’ agent would have less properties to choose from and heavily rely on the real estate agent’s skills to getting their clients ready to accept an offer.
Without buyer’s agents, selling agents have to deal with un-qualified buyers, taking large risks when selling a property to them.
Quick reference: ‘both types of agents are hired to negotiate the best terms and price for the clients that have hired them.’
FAQ’s Buyers Agent VS Real Estate Agent:
Can’t A Real Estate Agent Work Both For The Seller and The Buyer?
This is a complex questions that can be answered many different ways. Looking at it simply, a real estate agent is paid by vendors. It’s illegal for an agent to receive commission from the seller as well as this is considered a conflict of interest.
The agent is employed to look out for the best interest of the vendor. Hence, a buyer’s best interests are always second preference.
Do I Need A Real Estate Agent to Sell A House?
Property owners have every right to sell their own properties. If you have the skills, you can save yourself a lot of money. A good real estate agent will give you a higher chance of gaining better results.
Can’t any one buyer a house? Why pay someone to do it for me?
Yes, any one can buy a house and save a lot of money by not having to use a buyer’s agent. Using an agent will increase your chances of a better result.