Real Estate Buying 101 – Which Agent Should You Hire To Represent You In A Real Estate Deal With today’s housing market, it is possible to get a great house at a fantastic price. There are many foreclosed homes currently on the market. These homes are listed at rock bottom prices because the mortgage companies just want to get the amount of money owed to them. Hiring a real estate agent can help you find the best deal on the market. Continue reading to find out how to hire a real estate agent that will work for you.
Three Types Of Real Estate Agents
In today’s real estate world, there are three types of real estate agents – a buyer’s agent, a dual agent and a seller’s agent. Each of these types of real estate agents represents a party in the real estate transaction.
A seller’s agent works for the seller and tries to get them the money possible. Seller’s agents get a percentage of the sales price, so it is in their best interest to get the maximum sales price of the property. The listing agent is always a seller’s agent because they have a vested interest in getting the maximum sales price; therefore, they always represent the seller.
A buyer’s agent works for the buyer and tries to save them the maximum amount of money on the purchase of a home. Buyer’s agents get a percentage of the sales price; however, the buyer also agrees to pay the buyer’s agent a percentage of the sale’s price. This agreement allows the buyer’s agent to make a nice profit while representing the buyer. Generally a buyer’s agent will charge between four and six percent commission for representation.
A dual agent represents both the seller and buyer equally. This type of agency generally occurs when a potential home buyer hires a real estate agent as a buyer’s agent, and then decides to place an offer on a property that the real estate agent has listed. This type of real estate agent does not represent either client. The real estate agent does not offer advice to either client. The agent only works to get the deal closed. He will set up the appointments for inspections and talk to the mortgage lender, but does not offer advice as far as the sales price. This type of agency is the most dangerous to both the real estate agent and the buyer and seller. The legal waters are quite murky in this type of agency, and should be avoided if at all possible.
In today’s home market, there are many great deals to be found. Before hiring any real estate agent it is important that you understand the different types of agency offers available. This article has explained each type of real estate agent available to both buyers and sellers. Use the information above before searching for that perfect property. Then, go out there and find your agent. You will be rewarded with an amazing deal.