Buyer’s Agent vs. Seller’s Agent: What’s the Difference? 

Are you considering buying or selling your home? A buyer's agent or a seller's agent can help. While it might seem like you'll only need a single agent, the buyer and the seller need an agent representing their interests. Understanding the roles and responsibilities of buyer’s agent vs seller’s agent in the homebuying process can help facilitate a smooth closing. Read on. 

What Is a Buyer’s Agent?

A buyer’s agent, also sometimes called the selling agent, represents the buyer. They may be called the selling agent because they bring the buyer to close the sale. They protect the buyer's interest throughout the homebuying process and guide their client through closing after an offer is accepted.

The buyer's agent helps in the house-hunting process. They can advise potential homebuyers on under-market value opportunities and help you run comps to negotiate the greatest value. The buyer's agent will identify properties that potential homebuyers might want to purchase. 

A buyer's agent can help you make an attractive offer in competitive housing markets and navigate competition successfully. They can also help in negotiations and facilitate closing. The buyer's agent commission fee is typically around 2% to 3% of the sale price.

For example, suppose you're looking to purchase a home for up to $300,000 in a certain neighborhood of Chicago. The buyer's agent will show you homes that recently sold at that price point, explain how long they were on the market and suggest other homes up to that value that meet your other criteria (like number of bedrooms or bathrooms). If you find a home you like, they will help you prepare and submit an offer, go through contingencies and close on the home. 

Why Should You Hire a Buyer’s Agent?

You can benefit from numerous advantages by having a buyer’s agent. Most importantly, a buyer's agent can help save you time and money from the home search to closing. The agent can act without emotion to help you negotiate better terms on the deal. They can save time, money and hassle while helping secure your dream home. Learn more about how to choose a buyer's agent. 

What Is a Seller’s Agent?

The seller's agent works on behalf of the homeowner planning to sell a property. Also called the listing agent because they post the home listing, these real estate professionals will research comps to set competitive pricing. The seller's agent will also bring potential homebuyers to see the property. 

The seller's agents then actively market the property. They may help you style the home, get professional photographs and show it at an open house. When an offer is received, the seller's agent will help the seller evaluate the buyer and walk them through the negotiations, handle all the paperwork and facilitate closing on the sale. Seller's agents typically earn a commission fee of around 2% to 3% of the sale price.

Suppose you plan to sell your starter home and move into a larger home. You're pretty sure the home has appreciated, but you're not sure by how much. The seller's agent will run the comps and suggest pricing. In this case, the seller's agent suggests you list the home at $275,000 and aim to close at $265,000.

Then, they will help stage the home, get professional photographs and list the home. They will also plan an open house and other ways to market the property based on current market conditions. When you start receiving offers, they will advise the buyers based on their experience and help you weed out buyers who might not be serious or who aren't pre-approved for a mortgage. They can also help you negotiate.  

Once you're under contract, they'll handle all the paperwork and ensure you meet contingencies for a smooth closing. 

Why Should You Hire a Seller’s Agent?

Consider working with a listing agent rather than selling the home yourself because you gain access to their expertise and in-depth knowledge of local housing markets. Selling agents can research detailed information on the sales of comparable properties in your neighborhood, which helps with pricing and negotiations. 

The benefits of hiring a seller’s agent are significant. They can save you time and help you get a higher price for the property. They may also ensure the property sells faster and doesn't sit on the market for months. Learn more about how to choose a seller's agent. 

What’s the Difference Between a Buyer’s Agent and a Seller’s Agent?

The main difference between a buyer's and seller's agents lies in their primary responsibilities. A buyer's agent focuses on finding and negotiating the purchase of a property for the buyer. A seller's agent focuses on marketing and selling the property for the seller. While both work to close the sale, they work as advocates for each party. 

As it's clear from above, there are differences in the services a buyer's or seller's agent offers. Some real estate agents may specialize in one side of the transaction. However, most real estate licenses allow an agent to represent either a buyer or a seller.

Responsibilities of a Buyer’s Agent

The role and responsibilities of a buyer’s agent center on assisting buyers in the homebuying process. Responsibilities of the buyer's agent include:

• Map active, under contract and recently sold properties that meet your requirements to help you understand the market 
• Make appointments to tour homes
• Advise you on the resale potential of the home
• Analyze the price and value of a home to make a competitive offer
• Explain the standard offer form 
• Offer advice on whether you should ask for contingencies
• Recommend trusted home inspectors and suggest additional inspections
• Attend inspection and appraisal tour 
• Negotiating inspection issues
• Assist in understanding documents like HOA agreements and title commitments
• Coordinating communication between the lender, title officer, seller and buyer
• Monitor loan commitment
• Assist with the closing process 
• Ensure the correct signatures are in the right places at close

Responsibilities of a Seller’s Agent

The role and responsibilities of a seller’s agent center on assisting sellers in the sale of their homes. These responsibilities can include:

• Do a full walk-through of the home
• Suggest how to clean, declutter, stage and update to increase sale value
• Refer contractors to perform suggested updates
• Help the seller stage the property
• Organize professional photos of the property for marketing purposes
• Place professional signage at the property
• Help price the home correctly for market conditions
• Develop marketing materials and a professional website with a virtual tour and a video tour
• Host open houses and private tours of the home
• Double-check that buyers are pre-approved for a loan
• Attend home inspection and appraisal tours
• Negotiate inspection issues with the buyer’s agent
• Assist in any title issues
• Coordinate communication throughout closing
• Make sure the seller has the correct documents and understands them
• Ensure the correct signatures are in the right places at closing

What Is a Dual Agency?

Dual agency means that a single agent represents both the buyer and the seller. While this might save costs, it can also mean a fundamental conflict of interest exists. For that reason, dual agency is illegal in several states.

If it's allowed, here's how it might work: Suppose you attend an open house and want to put in an offer on the house right away. You make your offer directly to the seller's agent. If the offer is accepted, the seller's agent will work as a dual agent. 

The pros are a simplified, possibly faster closing. The cons are the conflict of interest and possibly unfavorable terms for the buyer. 

Simplifying the Home Buying and Selling Process

Buyer's agents and seller's agents are advocates to help simplify the home buying or selling process whether you plan to buy your dream home or want to sell it as easily as possible. They can save you time and ensure a smooth closing. If you are ready to get started buying or selling, learn how to make an offer on a home or how to get started in real estate investing. 

Frequently Asked Questions