How are real estate agents different?

As you embark on your journey to purchase a new home, you owe it to yourself and your family to be knowledgeable about the home-buying process. After all, this is one of the biggest financial decisions you will ever make.

Selecting the best real estate agent/broker

Foremost among your concerns should be the selection of the best real estate buyer broker to help you navigate the process. You may not be aware of it, but there is a difference among real estate agents and your understanding of this difference can be the determining factor in the success of your home-buying experience.

Finding an agent who really works for you

There are essentially three types of real estate practitioners. These are listing agents, buyer/dual agents and exclusive buyer's agents. While all three types make every effort to represent their clients fairly and equally, there are very critical differences in the ability to demonstrate loyalty, obedience, disclosure, confidentiality, and responsibility that buyers need to know.

• Listing agents are known as traditional agents and are the most familiar type of real estate professionals. They are marketing specialists representing the interests of home sellers. They determine the value of the home, market the home and negotiate for the best terms and price on the seller's behalf.
• Buyer/dual agents are agents who work for a traditional firm representing both the buyer and seller. It is important for the buyer client to understand the limitations created by a dual agency relationship prior to entering into an agreement with that agent/agency. A dual agent must treat buyers and sellers fairly and equally; however, it may be difficult to advance the interests of both the buyer and the seller because of their competing interests. With dual agency, it is possible to lose your most important advisor and advocate.
• Exclusive buyer agents are real estate professionals representing the buyer's best interests in the home buying process. They determine the home's value and formulate the negotiation strategy to get the best price and terms for the buyer, advise buyers of their best options after the home inspection and represent the buyers through the closing. Exclusive buyer agency insures no conflict of interest.

In summary:

Because an exclusive home buyer agent- broker works 100 percent on the side of the buyer, they will point out potential issues in the prospective property and even advise buyers not to consider certain properties. The agent essentially takes the role of home buyer consultant, with your success foremost in mind.

When a buyer works with an agent whose firm lists property, the buyer might find his or her interests are compromised due to the agent's relationship with the opposing side, the seller. Now that you have an understanding of the three types of real estate professionals, you may wonder how real estate agents get paid and what, if any, implications this has for you.