The real estate market has a complex environment with numerous intermediaries at play. From selling agents to traditional real estate agents to brokers, it is filled with professionals that are quite resourceful in their own tasks. But who performs what tasks?
Well, if you are a newbie who has just entered the world of real estate, then surely these terms can confuse you. They can be all the more frustrating to understand if you are thinking of hiring these real estate professionals to do your job.
To clear away your clouds of confusion, we have compiled the necessary information in the blog to help you understand the difference between a buyers agency, a selling agent and a traditional real estate agent. So, without wasting any more time, let’s get into it!
What Is A Buyers’ Agency?
A buyers’ agency is a professional entity that employs licensed real estate professionals to represent the buyers in the property market. They are also referred to as buyers’ advocates. Their main task is to find the properties that the buyers want and strike a viable deal between the buyer and the seller. However, as the buyers’ agents represent the property buyers, they are legally bound to act in the best interest of the buyers and thereby providing them with the best possible deals by negotiating the property price.
Benefits Of Hiring Buyers’ Agents
Buyer agents oversee the real estate transaction, which solely involves the buying of a property or home. They cater to potential investors in the property market. Some of the benefits of hiring buyers agents are:
Saves Time
They are efficient in providing you with the necessary reports and data related to the available investment property and its purchase price. From doing field research related to the nearby locality and facilities of the property to inspecting the property, they take care of everything.
Helps Gain Local Market Knowledge
Professionals who belong to the real estate industry can only know the actual price of the properties. They are constantly aware of the deals that are taking place and know the cost of all the local areas. Hiring a buyer’s agent is a great way to gain knowledge about the current market value of the property you want to buy. It also gives you a fair idea about the budget you should have.
Access To Off-market Properties
Sometimes private sales take place. As a result, you miss out on amazing deals. Buyer agents have access to off-market properties that are being sold silently. With their connections, they can provide you with the options of off-market or pre-market properties too.
Access To Market Data And Prediction
Calculating the future value of the property in which you will invest is crucial to know how beneficial the investment would be for you. You can leave all these administrative tasks to your buyers agent as they can compute and predict the future cost of the property to ensure that your investment property will be profitable.
What Is A Selling Agent?
A selling agent works for the property sellers. They are licensed professionals who are specialised in selling the property. Their job is to act in the best interest of the seller, and they are legally bound to represent the seller and do what’s best for the seller. Their main objective is to find potential property investors so that they can help their clients to sell real estate properties.
Benefits Of Hiring Selling Agents
Seller’s agent’s job is to find investors for the property of their clients. Thus, they need to maintain contact with buyers’ agents to know about a prospective buyer. Some of the benefits of hiring a seller’s agent are:
Helps In Finding Potential Buyers
Their main job is to constantly look for high-paying potential buyers so that they can provide the best price deals to their clients.
Effective Negotiation Skills
They have excellent negotiation skills as their main goal is to sell the property at as high prices as possible so that their client can earn a high profit.
Provides The Best Deal In a Fair And Reasonable Manner
Since the real estate market is overflowing with investors, it’s easier to find them. However, the job of the seller’s agent is to find the high-paying investor among the lot and strike a profitable deal with them.
What Is Traditional Real Estate Agency?
In the traditional agency arrangement, the client, whether a buyer or seller, works with a broker to finish a real estate transaction. This means the transaction could be related to the buying process of a property or the selling process of the property. The role of the broker is to manage these processes and work with their client with gill confidentiality during the negotiation. This means that the agent in traditional real estate arrangements works solely in the best interest of their clients.
Benefits Of Traditional Real Estate Agents
Tradition real estate agency arrangement was quite messed up because of the same agent performing both the roles of the buyer’s and seller’s agent. However, there were still some handful of benefits of this arrangement which are mentioned below:
Effective Property Management
It was a great arrangement for people who constantly invest in properties and sell their properties as traditional real estate agents could handle and manage both the real estate transaction.
Highly Resourceful
Traditional real estate agents had a lot of contacts as they used to deal with both seller’s agents and buyer’s agents. These contacts proved to be resourceful whenever they needed to gain insight.
Excellent Knowledge Of Market Value
As the brokers had knowledge of both buying and selling, they precisely knew the purchase price of the property without doing any research.
Final Thoughts
Traditional real estate agency arrangement was an old method of striking a deal between the buyer and seller of the property. However, it has its own limitations. For starters, there was a great conflict of interest as sometimes the broker can act as both the buyer and seller’s agent.
There was also the concern related confidentiality of the client. This is the reason why other forms of real estate marketing took place. In today’s real estate transaction, there are two intermediaries who close the deal buyer’s agent and the seller’s agent.
