Buyer's Agent
Definition and meaning of Buyer's Agent in real estate.
A buyer's agent is a licensed real estate professional who represents a home buyer's interests throughout a real estate transaction.
In more detail
A buyer's agent helps find suitable properties, schedules viewings, and advises on home values and local market conditions. They also negotiate terms and prices, draft sales contracts, and guide the buyer through the inspections and closing process. In many states, their commission is typically paid out of the proceeds of the sale by the seller, meaning the buyer pays no direct fees.
However, commission structures can vary, and buyers should discuss the compensation details with their agent before signing a representation agreement.
Key facts
| Category | Buying & Selling |
|---|---|
| Who pays | Typically paid by the seller through a commission split |
| Required by | Not legally required, but highly recommended for buyers |
| Applies to | Residential and commercial property purchases |
A buyer hires a buyer's agent to help search for a home, who then identifies off-market properties and successfully negotiates a lower price on the selected house.
Frequently asked questions
How is a buyer's agent compensated?
Typically, the buyer's agent receives a share of the commission paid by the seller, though compensation agreements can vary.
Can a buyer's agent represent the seller too?
Yes, this is known as dual agency, but it must be disclosed and is illegal in several states.