Have you ever wondered about the differences between a buyer’s agent and a seller’s agent? Did you know that one agent is able to act as both in Belize? Do you know the repercussions of this on your transaction, if any?
In the easiest terms to describe this, the buyer’s agent is supposed to work for the buyer and the seller’s agent is supposed to work for the seller.
There is something called Fiduciary Responsibility and it essentially is defined in this manner: “Fiduciary relationships involve trust and confidence. They require that the fiduciary (i.e., the party entrusted with taking care of another party) acts honestly, in good faith, and strictly in the best interests of the other party”. I’m going to say here that most real estate agents act honestly and in good faith but if the agent is handling both sides of the transaction then the other component of this definition is missing – where the agent acts in the best interests of the buyer or seller client.
Strive For Win-Win
You see, in a transaction, while we always strive to have a win-win situation. This is where both sides are as happy as possible with the outcome, there is information that is shared and expected to remain confidential that is relayed to the agent.
For example, the seller client informs the agent of what their best price is. If the agent is representing both sides of the transaction the proper fiduciary arrangement indicates that this information should be shared with the buyer client. However that isn’t acting in the best interests of the seller client because now the buyer knows the amount that will take the purchase.
A buyer always wants the lowest price possible, and the seller always wants the highest price possible and these two objectives are polar opposites. So how is the agent who is handling both sides supposed to represent both sides in a manner that honours the fiduciary responsibility?
To answer this question, I believe, many agents keep the confidential information to themselves that has been shared from either side of the transaction. And while this is “fair” it’s not meeting the objective of a fiduciary responsibility.
Who Pays?
In Belize it is the seller side of the transaction that usually pays the commission. This has been worked out between the listing agent and the seller client long before any buyer clients come on the scene. So any buyer working with the listing agent won’t necessarily get a better price. And the buyer client won’t get the best representation for the reasons listed above.
So, as the commission is paid by the seller client it should make sense for a buyer to find a realtor to work with and stick with that one person. This way a good working relationship is developed. And the buyer’s agent works strictly for the buyer. The agent gets to know the buyer, which should result in better service. If not, the client can always find another agent to work with.
A good buyer’s agent should also be prepared to cross company lines and show whatever is on the market. Not just what they represent through their office or association. This takes more work on the part of the buyer’s agent but this should be part of the service a buyer client can expect.
What The Agent Does For You
Tasks that a buyer’s agent performs for the buyer include the following:
- Acts as your advisor during the whole home buying process
- Helps you understand the current market conditions so you are always paying the right price
- Handles the ins and outs of your full negotiation
- Helps you find the perfect home before it goes under contract
- Show homes and properties around your schedule
- Connect you with the right third party sources such as lenders, inspectors, appraisers, etc.
- Is paid the commission from seller, so you are being represented without cost to you
This type of representation is important to me as an agent, as well as the agents working with me. This should be important to you as well as a buyer.
Reach out
Feel free to reach out to me on my social media platform. And check out my website for current and updated information – www.princess-realty-belize.com.
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