Sellers Agent & Buyers Agent... What's The Difference?

Whether you are buying or selling property, it is always good to know the different roles of a real estate agent. 

Provided by Texas Realtors® 

"License holders have two requirements under Section 1101.558, Representation Disclosure, of The Real Estate License Act:

• To disclose which party they represent to other parties or license holders who represent another party in a proposed real estate transaction.

• To provide information about brokerage services to prospective buyers, sellers, tenants, and landlords.

The first requirement is a disclosure, which can be provided orally or in writing. The second requirement is a written notice, which must be provided to prospective parties to a proposed transaction for a property through the Information About Brokerage Services form promulgated by the Texas Real Estate Commission." Source: https://www.texasrealestate.com

Here is a copy of my Information About Brokerage Services form so you can see how it reads.

Types of Representation in Texas

Seller's Agent

Buyer's Agent

Intermediary

Subagent

Seller's Agent

(An Agent Representing the Sellers Only)

The seller's agent (listing agent) has many duties to perform when listing a property for sale. When you hire an agent to represent you, that agent and you are basically signing an agreement for their employment for the terms both parties have agreed to. Commission, duration, expense reimbursement, etc., is all negotiable and contained in that agreement. Once hired, they owe you a fiduciary duty to always put your interests above all others. They will work to get you the best price, terms, and deal all around from potential buyers. This list does not include everything your agent is working on day to day since all transactions are unique. 

1. Initial consultation with representation and agency disclosure.
2. Gather information about the property and conduct comparative market analysis.
3. Dig into any unknown information on the property. (Tax records, deed restrictions, easements, leases, pipelines, etc.)
4. Discuss any needed repairs and staging.
5. Go over current market conditions.
6. Present marketing plan.
7. Give listing presentation and go over listing agreement.
8. Discuss upcoming steps, showing instructions, offer and contract process.
9. Get spare keys made.
10. Install lockbox and put out signs.
11. Plan for professional photography.
12. Upload all listing information and pictures into MLS's.
13. Blast listing on all social media, email, third party sites, website, flyers, etc.
14. Schedule all showing requests.
15. Communicate any feedback from showings.
16. Present all offer to sellers.
17. Negotiate offers back and forth.
18. Touch base with any lenders on offers for pre-approvals/pre-qualifications.
19. Get copies of signed contract to all parties needed.
20. Make sure the buyer's earnest money and option fee is turned in on time.
21. Confirm any inspections with seller's schedule.
22. Negotiate any repairs.
23. Coordinate with service providers on any repairs and confirm completion with proper documentation.
24. Update MLS as needed.
25. On-going calls and emails during transaction touching base with all involved.
26. Surveyor scheduled if required, completed survey sent out as needed.
27. Check in on sellers for packing progress.
28. Work out any title commitment issues.
29. Work with all service providers during transaction. (Lenders, inspectors, surveyors, appraisers, etc.)
30. Touch base on existing mortgage payoff request.
31. Double check on any transferring property warranties.
32. Work with any appraisal issues.
33. Review closing documents.
34. Coordinate closing day and time with sellers.
35. Order any home warranty.
36. Send out reminder to sellers on the buyer's final walkthrough, utility transfers, any warranty transfers, requirements for closing, etc.
37. Pickup lockbox and signs.
38. Attend closing with sellers.
39. Update MLS status.
40. Close out completed file.

Buyer's Agent

(An Agent Representing the Buyers Only)

The buyer's agent also has many duties to perform for their clients. There is also a buyer's representation agreement that gets signed which is what spells out the terms, duration, property location, etc., which are all negotiable and contained in this agreement. When a buyer's agent agrees to be your fiduciary representation, they are agreeing to putting your interests above all others. This list also does not include every little thing your agent is doing for you since every transaction is unique.

1. Initial consultation with representation and agency disclosure.
2. Discuss the buyer's goals, property requirements, budget, and get lender contact information.
3. Touch base with buyer's lender on pre-approval/pre-qualification.
4. Go over current market conditions.
5. Talk about upcoming earnest money and option fee requirements and the offer/contract process.
6. Begin property search.
7. Forward any properties with seller's disclosures that match buyer's criteria of "must have's and don't want's".
8. Schedule tours with the seller's agent at each property.
9. Arrive to property ahead of time to open it up and turn on lights.
10. Tour each property with buyers. (Making sure to point out the good and bad.)
11. Lock up properties per seller's agent instructions for each.
12. Communicate any feedback to seller's agent that buyer's want to share.
13. Continue searching properties as needed.
14. Dig into any properties that peaks the buyer's interests for additional information.
15. Research utilities, leases, pipelines and wells, surrounding area for changes coming, for any properties buyers are narrowed down to.
16. Supply buyer with comparable properties to help them decide the best offer price.
17. Draw up offer paperwork.
18. Negotiate offer back and forth with seller's agent.
19. Get copies of signed contract to title with earnest money and option fee on time.
20. Send out copies of contract to all parties needed.
21. Schedule inspections and confirm day and times with seller's agent.
22. Attend planned review time with inspector when they are done and ready.
23. Negotiate any needed repairs per buyer's instruction.
24. Coordinate with needed contractors for repairs and confirm completion with proper documentation. 
25. On-going calls and emails touching base with lender and title company during transaction.
26. Work with surveyor if required.
27. Get completed survey to all parties needed if required.
28. Work on any commitment issues needed with seller's agent.
29. Touch base on loan.
30. Work with any appraisal issues that arise.
31. Remind buyers about utilities to transfer and home insurance.
32. Review closing documents.
33. Coordinate closing day and time with buyer's schedule.
34. Meet at property for final walkthrough.
35. Attend closing with buyers.
36. Make sure buyers have keys, warranty paperwork, and any clickers/codes.
37. Close out completed file.

There is a misconception that when buyers see a for sale sign in a yard, that they have to call the number on that sign to inquire about it and ultimately purchase it through them. That is absolutely not true. Every buyer is free to use whatever real estate agent they want to work with on any property. It is important to always remember that the listing agent has a signed representation agreement with that seller. They have been hired to exclusively sell that property and get the sellers the best price, best terms, and ultimately the best deal all around for them. 

Intermediary

 Intermediary - Without Appointments

(One Agent Working Both Sides of a Deal)

This form of intermediary is where the same agent works for the seller and the buyer on the same transaction. No advice or opinions are allowed to be given to the parties. This can happen when an agent has a listing agreement for a seller in place, and then starts working with a buyer under a buyer's representation agreement who then decides they would like to purchase one of their own agent's listings. If the broker allows an agent to work both sides of a transaction, that agent cannot recommend an offer to their buyer. That agent cannot recommend a counter to their seller. No repairs can be recommended. And on... and on. This basically turns the agent into a facilitator of the transaction only. 

Once the intermediary is determined, if any advice or opinion is given, that is considered dual agency, and in Texas that is illegal.

"TREC states that once an agent recognizes the extent a dual agency relationship is created by accident or otherwise, a license holder must resolve the matter by immediate compliance with the notice and consent requirements under TRELA §§1101.558-561 and act as either an intermediary or represent only one of the principals in a transaction while working with the other principal only as a customer."  Source: https://www.trec.texas.gov

You may be asking how is my agent going to represent me best if they are not able to advise me or give me their opinion along the way... and you would be asking a fair question. Factual information must still be disclosed, no favoritism can be shown to either, and all parties must be treated honestly. Always think this decision through, even if both sellers and buyers believe they have all the details worked out ahead of time, and don't foresee a problem using the same agent. If anything unexpected pops up, and you find yourself needing their expert advice, just keep in mind, they will be limited on what they are allowed to communicate.

Intermediary With Appointments

(Two Agents Under Same Broker Working Opposite Sides of a Deal)

This form of intermediary is where two different agents working in the same office are representing their own client on the opposite side of the same transaction. The broker still must maintain a neutral position however, the sales agents are allowed to give advice and opinions to the clients they are representing. Although choosing no intermediary on a listing agreement/buyer's representation agreement will guarantee you to always have full representation during your transaction from your agent, it could also limit the number of buyers on your listing as a seller, and the number of properties to view if you're a buyer.

Real estate is usually one of the biggest transactions of a person's life, which is why it is so important to have this conversation with any agent you work with. On the listing agreement (seller's agent employment contract) and the buyer's representation agreement (buyer's agent employment contract) there are places on both to decide whether you will allow intermediary or not. It is negotiable and each seller and buyer must make that choice when signing either of those agreements. If you decide against intermediary but are still wanting to move forward with that desired property, being referred to another agent is always an option and full representation will now be provided by your new agent.

Subagent

In the rare instance that a buyer does not want their own representation, and they have been getting assistance from an agent other than the seller's agent (listing agent), there is what's called subagency. The Information About Brokerage Services form describes this as when an agent helps a buyer in a transaction but there is no agreement to represent that buyer. The agent can still assist but does not represent them and must place the interests of the seller first. 

I can honestly say I have never acted as a subagent, nor have I ever worked a contract where another agent was acting as a subagent to one of my sellers. I always personally have a representation agreement signed for all my buyers I work with which gives them and me the most protection during a transaction. 

About The Author

Hi there! I am the Broker & Owner at Country Roots Realty and I love helping buyers or sellers with all of their real estate needs here in the Pineywoods of East Texas.