| If you are looking for a house, your real estate agent isn't yours unless he or she is a buyer's agent. This means you better watch what you say.
The real estate agent, unless specifically contracted as a buyer's agent, is working for the seller. Buyers usually know this, but they don't think it matters, as long as the agent is helpful. While true to an extent, buyers don't realize that an agent has a real legal responsibility to, and loyalty to the best interests of the seller. It is referred to as a fiduciary responsibility, but what does this mean?
A Real Estate Agent Is A Spy
Let's suppose you make an offer on a home, and mention that if the seller says no, you'll probably offer $5,000 more. The sales agent now has an obligation to tell the seller what you said. That's an expensive comment, isn't it? An agent may spend all his time with you, showing you houses and helping you write offers, but his allegiance is legally with the seller, unless he is hired by you.
An agent, even if she is a seller's agent, can be a great help when you are buying, but remember that she is a sales-person, and you're not the boss. Be careful what you say, and be careful with anything she says. You may want to work with a buyer's agent. In that case the agent can work for YOUR best interests, but even here remember that she will usually get paid only when you buy something, so her objectivity is suspect.
Some real estate agents work under "dual-agency" rules, meaning they're |
