What’s the Difference Between a Real Estate Agent and a Buyer’s Agent?

Photo credit: bwrm.sunshinecoast

Buying or selling a home is one of the biggest financial decisions you'll ever make, so it's important to understand the roles of the professionals involved. You’ve probably heard the terms "real estate agent" and "buyer’s agent" thrown around, but what exactly is the difference between the two? Let’s break it down.

The Basics: Real Estate Agent vs. Buyer’s Agent

First, let’s clarify the broad term "real estate agent." A real estate agent is a licensed professional who facilitates the buying and selling of properties. They can represent either the seller (seller’s agent) or the buyer (buyer’s agent) in a transaction. However, most people commonly think of seller’s agents when they hear the term "real estate agent."

Who Pays Who?

A key difference between these agents lies in who pays their fees. In Queensland, the seller pays the selling agent's commission, and the buyer pays the buyer's agent's fee. These are two separate transactions. This means that if you hire a buyer’s agent, their fee is your responsibility, independent of the seller’s agent. While it’s an additional cost for the buyer, the expertise and negotiation skills of a buyer’s agent can often save you money in the long run by securing a better purchase price and terms.

Different Loyalties, Different Goals

Seller’s agents, often referred to simply as real estate agents, work for the seller. Their job is to get the best possible price for the property they are selling. This means their loyalty lies with the seller, and they’ll use their skills and market knowledge to achieve the highest sale price.

Buyer’s agents, however, work for you—the buyer. Their loyalty is to you, and their goal is to help you find the best property at the best price. They’ll leverage their market expertise to identify properties that fit your criteria, assist in negotiations, and make sure you’re getting a fair deal.

Services Provided

Real Estate Agents (Seller’s Agents):

• Marketing the Property: They’ll create listings, take professional photos, and market the property through various channels.

• Conducting Open Houses: They’ll organise and run open houses to showcase the property to potential buyers.

• Negotiating Offers: Their aim is to secure the highest price and best terms for the seller.

• Managing Paperwork: They handle all the legal documents and ensure everything is in order for the sale.

Buyer’s Agents:

• Finding Properties: They search for homes that match your needs and budget.

• Market Analysis: They provide insights into local market conditions and property values.

• Arranging Viewings: They schedule and accompany you to property viewings.

• Negotiating the Purchase: Their goal is to get you the best deal possible, negotiating price and terms.

• Managing Paperwork: They ensure all documentation is accurate and complete, guiding you through the legal aspects of buying a home.

Expertise and Local Knowledge

Both types of agents bring valuable expertise to the table, but their focus areas differ. Seller’s agents are experts in marketing properties and understanding what buyers in the area are looking for. They know how to present a home to get top dollar.

Buyer’s agents, conversely, are adept at identifying potential issues with properties, understanding true market value, and finding homes that meet your specific needs. Their local knowledge is crucial in helping you avoid overpaying and ensuring you’re making a sound investment.

Conflict of Interest

One crucial point is the potential for conflict of interest. A real estate agent who represents both the buyer and seller in the same transaction is called a dual agent. This can lead to conflicts, as it’s challenging to represent both parties’ best interests simultaneously. Many buyers prefer to hire a dedicated buyer’s agent to avoid this scenario.

Making the Right Choice

When deciding whether to work with a real estate agent or a buyer’s agent, consider your needs. If you’re selling, a seller’s agent’s marketing skills and network are invaluable. If you’re buying, a buyer’s agent’s dedication to finding the right home and negotiating on your behalf can save you time, stress, and money.

In summary, understanding the distinct roles and loyalties of real estate agents and buyer’s agents can help you make informed decisions in your real estate journey. Whether you’re buying or selling, having the right professional by your side can make all the difference.

Want to know more?

On the Sunshine Coast, there’s no one more equipped to serve your every housing need than Ocean Buyers Agency. We’re here to help guide you along that journey in finding your forever home with a stress-free buying experience. 

Whether you’re a buyer or investor, we have all the right tools and services to meet your property buying needs. From property shortlisting to pricing and tailoring to your needs, we have just the right people for you. 

Contact us for a quick chat and you’ll be moving into the Sunshine Coast in no time.