What is the difference between a Buyer's Agent and a Seller's Agent?
Buyer's Agent:
When you use a buyer's agent, it means the agent is working for you with your best interests in mind. In Wyoming, you will typically be asked to sign a Buyer’s Agency agreement. This is a personal service contract between you and the real estate Broker.
As your representative, the buyer's agent will provide you with information that allows you to make informed decisions; negotiate to get you the price, terms, and conditions that you want. As your agent, they should keep the transaction on track by seeing that all deadlines agreed to (Inspections, Title Commitment, Appraisals, Loan Approval, etc.) are met.
Unless you authorize your agent to share information with others, anything that you tell your agent should remain confidential.
When showing you property and assisting you in the purchase of a property, a Buyer’s Agent and his/her firm will be representing the interests of the BUYER. The firm and all of its agents must work to obtain for the Buyer the price and terms the Buyer wants. The firm and all of its agents are required to furnish the you with any information obtained from the Seller, Seller's Agent or any other source which is material to the transaction or which might influence the Buyer's decision to make an offer and at what terms and conditions.
As a Seller, you should never disclose to the Buyer's agent(s) any information that you do not want the Buyer to have.
If you use a Buyer’s Agent, do you pay more? There are situations where agents charge an hourly fee or a flat fee for their services. However, in most cases the Listing Agent (Seller’s representative) will compensate the Buyer’s Agent.
For example, if a property sells for $400,000.00 and the Listing office has a 6% commission, the Listing Agency is paid $24,000.00 by the Seller at Closing of Escrow. It is customary in our area for the Listing office to “share” this equally (50/50) when another real estate agency brings in the Buyer. Each real estate office then has an agreement with their respective agent on how their portion of the $12,000.00 commission is split. It is not unusual for the Buyer’s Agent and Listing Agent to earn $6,000.00 minus their marketing expenses on a transaction.
Does this create an incentive for the Buyer’s Agent to keep the sales price as high as possible? A $10,000 savings for the buyer ($390,000.00 in the above example) only amounts to a $600.00 difference in the total commission. That breaks down to a $150.00 difference for the Buyer’s Agent!
The benefits of providing you with quality service and complete satisfaction with their services, the word of mouth promotion they will receive and future referrals from you far outweigh any monetary gain they might get from not working on your behalf!.
How does a Buyer’s Agency agreement work? You negotiate the terms of the agreement up front so both you and the agent know what all parties expect.
We recomend you read the Wyoming Real Estate Brokerage Disclosure document.
Petersen & Mack
Petersen & Mack
Seller's Agent
The seller's agent works on behalf of the seller. The Seller’s Agent owes duties to the seller that includes the utmost good faith, loyalty and fidelity. The agent negotiates on behalf of and acts as an advocate for the seller. The Seller’s agent is required to disclose to potential buyers all adverse material facts about the property that he/she actually knows about. A written listing agreement is required identifying the duties and obligations of both the broker and the Seller (client).
Many Buyers assume that the real estate agent they contact regarding a property is working in their behalf. The agent showed them the properties they were interested in, notified them of new listings, was always there for them and finally, after weeks and weeks of searching, wrote the offer to purchase the property.
The Agent answered your questions about mortgages, irrigation rights, septic and culinary water systems, surveys and a hundred other issues related to the sale of the property. All to often, Buyers give confidential information to an agent, unaware that it is the agent's duty to pass that information to the seller (his/her client!).
In Wyoming, real estate agents are required to disclose who they represent. That disclosure should be at the first opportunity available! This disclosure may take place the first time you meet face-to-face, during a phone call, or by e-mail.
When showing you property and assisting you in the purchase of a property, the Seller’s Agent and his/her firm will be representing the interests of the SELLER. The firm and all of its agents must work to obtain for the seller the price and terms the Seller wants. The firm and all of its agents are required to furnish the seller any information obtained from you or any other source which is material to the transaction or which might influence the seller's decision to accept, reject or counter any offer you may make.
As a buyer, you should never disclose to the Seller's agent(s) any information that you do not want the seller to have.
We recomend you read the Wyoming Real Estate Brokerage Disclosure document.
