Who represents you when buying a home? 

Who represents you in real estate is an important first step in the home buying process.  Does it really matter which real estate agent represents you? 

We think so. Let’s break it down.

A real estate agent works under a supervising broker. In traditional real estate brokerage, a real estate agent can work for the buyer or the seller in a transaction. 

Key points

Real estate agents must work under the supervision of a broker 

Traditional real estate agents can work for buyers and sellers

Real estate agents can be listing agents, buyer agents and/or members of a team working under the supervision of a real estate broker

Real estate agents are paid a commission once a real estate transaction is completed (settlement)

A real estate broker can work independently for buyers and sellers and/or supervise agents at their brokerage.

Key points

A real estate broker is responsible for the agents who work under their supervision

Associate brokers and managing brokers work under the supervision of a broker

Real estate brokers can work for buyers and sellers earning a commission at settlement. Brokers also earn a portion of the commission from the agents working under their supervision.

A Realtor is a real estate agent or broker who is a member of the National Association of Realtors or NAR. This is a paid membership and the designation requires a higher ethical standard of conduct from a real estate agent. 

What is a buyer’s agent?

A buyer’s agent is an agent at a traditional real estate brokerage who works with  a buyer. 

Key points

Buyer agents can be dual agents, working with both sellers and buyers

Buyer agents can be designated agents, working with a buyer who is purchasing one of the brokerage listings

What is an exclusive buyer’s agent? 

An exclusive buyers agent is a real estate agent who only works for home buyers. These agents work with brokerages committed to serving home buyers in every real estate transaction. 

Key points

An exclusive buyer brokerage does not represent a home seller

An exclusive buyer agent or broker specializes in the buyer’s side of the transaction

Exclusive buyer agents and brokers see the conflict of interest in the traditional real estate business model.

We commend exclusive buyer brokers who really are trying to offer good value to consumers without the kind of conflicts of interest that exists throughout the rest of the industry. So, more power to exclusive buyer brokers. Steve Brobeck, Consumer Federation of America

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Dual and designated agency are legal in many states and the District of Columbia.

Dual and designated agency doesn't sit well with exclusive buyer agents and brokers. 

Key points

Dual agency is one agent working for the seller and the buyer in a real estate transaction

Designated agency is one agent at a brokerage working for the seller and one agent working for the buyer. 

In designated agency, the brokerage first agrees to serve the seller's best interest. 

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Two lawyers from the same firm would never represent clients on opposing sides of a case. In fact, they would likely be disbarred due to the conflict of interest.

Why is this type of representation legal in real estate?

How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.