One of the most common sources of confusion in real estate — and one of the most consequential — is the question of representation. Who exactly is your agent working for? What are they obligated to do on your behalf? And what happens when interests conflict?
The answer depends entirely on whether the agent is representing you as a buyer or representing the seller — and in some cases, both simultaneously. Understanding the difference is not just academic. It directly affects the advice you receive, the information you have access to, and ultimately the outcome of your transaction.
The seller's agent
The seller's agent — also called the listing agent — is hired by the homeowner to help them sell their property. Their primary legal obligation is to their client: the seller. Their job is to market the home effectively, attract qualified buyers, help the seller evaluate offers, and negotiate on the seller's behalf to achieve the best possible price and terms.
This means the listing agent's job is fundamentally adversarial to your interests as a buyer. They are not working against you personally — they want the transaction to close — but their obligation is to get the seller the best outcome. They are not required to volunteer information that might benefit you as a buyer if that information would disadvantage their client.
The buyer's agent
The buyer's agent represents you, the buyer. Their legal obligation is to work in your best interest — to help you find the right property, evaluate its value, identify potential issues, structure a competitive offer, and negotiate on your behalf. They are required to share information that is relevant to your decision-making, including factors that might give you cause to negotiate a lower price or walk away from a deal.
A good buyer's agent is worth significantly more than their cost. Studies consistently show that buyers who work with dedicated buyer's agents negotiate better prices, identify more property issues before closing, and have fewer transaction problems than those who attempt to work directly with listing agents.
Important: 2024 NAR settlement changes
In August 2024, the National Association of Realtors implemented new rules requiring buyers to sign a written buyer representation agreement before an agent can show them properties. This agreement spells out how the buyer's agent will be compensated. Understanding this agreement before you sign it is important — ask your agent to walk you through it before proceeding.
Dual agency — when one agent represents both sides
In some transactions, a single agent (or agents from the same brokerage) represents both the buyer and the seller. This is called dual agency, and it is legal in most states — but it comes with significant limitations on what the agent can do for either party.
A dual agent cannot fully advocate for either the buyer or the seller, because their interests conflict. They cannot advise the buyer on how low the seller might go, and they cannot advise the seller on how high the buyer might go. They are essentially a transaction facilitator — getting the deal done without fully representing either side.
Whether dual agency is the right choice for you depends on the situation. In some markets and circumstances it works well. But you should go into it with clear eyes about what you are and are not getting from your representation.
"The most important question you can ask any agent before working with them is: 'Who are you representing in this transaction, and what does that mean for me?'"
What to do if you are a buyer contacting a listing agent directly
This happens often — you see a house on Zillow, call the number on the sign, and end up talking to the listing agent. You may be tempted to work with them directly to simplify the process or in the belief that it might give you an advantage in negotiations.
It can occasionally make sense to work without your own buyer's agent — particularly in straightforward transactions where you are a sophisticated buyer and understand exactly what you are waiving. But in most cases, having your own representation is worth it. The listing agent's job is to get the seller the best outcome. Your job is to get yourself the best outcome. Those are not the same thing.
How seller's agent compensation works
Historically, the seller paid a total commission that was split between the listing agent and the buyer's agent. Following the 2024 NAR settlement changes, this structure has evolved. Sellers may still offer buyer's agent compensation, or buyers may negotiate directly with their agent on how compensation works. The key takeaway is that you should understand how your agent is being paid and make sure their compensation structure aligns with your interests — not just the goal of closing the deal.
The bottom line
Whether you are buying or selling, the most important thing you can do is understand who your agent is working for and what their obligations are to you. When you are a buyer, find an agent who is genuinely representing your interests — who will tell you when a price is too high, flag problems an inspection might find, and negotiate hard on your behalf. When you are a seller, find an agent who understands your market, has a real marketing strategy, and will fight to get you the best outcome.
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