Selling Agent vs. Listing Agent
- Selling Agent – Between a buyer that hires an agent to buy a property that meets their criteria. Also known as a “buyer’s agent.”
- Listing Agent – Between a seller that hires an agent to sell their property.
If a seller’s agent shows a property is listed with a different agent, both agents will agree to share the commission that is stated in the listing agreement (between the seller and listing agent).
By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington D.C.
- West Virginia
- Wisconsin
- Wyoming
What is a Buyer’s Agent?
A buyer’s agent is hired by a prospective buyer to show them properties that are listed for sale and to help in the negotiation if an offer is made. Depending on the State, the buyer’s agent may have a fiduciary duty to represent the buyer’s best interests when negotiating with the seller or seller’s broker. This means that if the buyer reveals their “price range”, the buyer’s agent is not allowed to disclose this to the other party.
How Does a Buyer’s Agent Get Paid?
In most cases, the buyer’s agent will be paid at the closing as a percentage (%) of the purchase price. If there is a listing agent, this makes it easier as the parties will commonly “split” the commission between the seller and their agent.
If there is not a listing agent, then the seller has the option to refuse payment to the buyer’s agent and the buyer may have to pay the agent out-of-pocket.
Exclusive vs. Non-Exclusive
- Exclusive Agreement – Offers protection to the agent that, no matter what property the buyer purchases during the listing period, the agent will receive a commission.
- Non-Exclusive Agreement – The agent will only be paid a commission if they show the buyer a property that the buyer ends up purchasing. In a non-exclusive agreement, the buyer has more protections that if the agent does not do their job then they do not get paid.
How to Terminate a Buyer’s Agreement
If a buyer has determined they would like to terminate their agreement, they will have to read and find any termination clauses or options to revoke the agreement. In most buyers’ agreements, there is no language that allows the buyer to opt out of the contract. Furthermore, agents are discouraged from terminating the agreement due to fear of missing out on a commission that may be owed if the buyer purchases a property that was shown to them.
Sample – Buyer Agency Agreement