As a customer, you may be considering many properties -- those listed with an agent as well as those sold privately, "by owner." Let's say you call a real estate agency regarding a detailed property you are finding in MLS (multiple listing service), the newspaper Massachusetts first time home buyer grants, or by driving by. Traditional agencies will offer you'buyer assistance ', meaning they will reveal properties, direct one to mortgage lenders, etc., all without a contract.
The agent you meet who teaches you that property is going to be anxious to show you other properties, of course. You begin to feel this agent is "your agent." NOT TRUE. This agent works for the agency that listed the property, and probably is employed by owner of the property, not you. Whatever you say might be carried back again to owner at any time.
Agents may call themselves a lot of things according to state regulations. In Massachusetts, for example, the "listing agent" is the agent who obtained the listing from the seller. The "selling agent" is the agent who actually makes the sale. To be able to better understand why concept, bear in mind that a real estate agency makes the most money when among their listed properties is sold by an agent "in house."
Most properties aren't shown or sold by the listing agent. Even though the homesellers could have spent considerable time with the listing agent discussing the fine points of their property so that they is going to be knowledgeable when showing it, the property will most likely be shown by agents who're totally unfamiliar using their home. Remember, whether discussing a listing agent or even a selling agent, until you have signed a contract with a buyer's agent, their allegiance is definitely to the seller.
As if this isn't complicated enough. using Massachusetts regulations for instance, a broker can work for both the customer and owner on the same property provided the broker gets the consent of both parties and provides each with a written notice of the relationship. In this instance, the broker is known as a "disclosed dual agent." This broker owes both owner and buyer a duty to manage them fairly and honestly.
In this sort of agency relationship, the broker doesn't represent either owner or the customer exclusively, and neither party can get the broker's undivided loyalty. Realistically, it's hard to imagine that properties aren't discussed over lunch or between agents sitting at the following desk. Undisclosed dual agency with a broker is illegal. The agent must present the customer by having an agency disclosure form upon first meeting to go over a certain property.
The utilization of an agent becomes further complicated when the topic of seeing properties offered "by owner" is brought up. Unless the agent that's showing you properties is just a buyer's agent, the only path he/she can receives a commission is to obtain the private seller to list the property, something that's not likely to happen. You do not need an agent to view a for sale by owner property and some sellers prefer not to negotiate with anyone but the customer directly. If you do feel that you need representation, usually the one agent that's loyalty to you, the customer, is just a buyer's agent.