Buyer Agent vs Seller Agent: Roles and Benefits Explained

TL;DR: Ask who the agent represents before sharing your budget or negotiating limits. Read the Michigan agency disclosure and the separate service agreement, including fees, scope and duration.

What a buyer agent does

A buyer agent can help you find homes, compare recent sales and decide which offer terms fit your goals. Ask how the agent handles inspections, appraisal shortfalls and repair requests. Review the agreement for coverage, duration, cancellation and fees.

What a listing agent does

A listing agent can recommend a price range, plan photography and marketing, coordinate showings and compare offers. Look at projected net proceeds, financing, contingencies and closing dates when choosing an offer.

How Michigan agency disclosure works

Michigan lists duties such as reasonable care, loyalty, confidentiality and accounting in its agency disclosure. The licensee must disclose the applicable relationship before a prospective client shares confidential information. Review the signed service agreement separately for the services and terms you are hiring the brokerage to provide. Michigan Occupational Code, section 2517.

Dual agency and designated agency

Michigan permits disclosed dual agency with both parties’ written consent. A dual agent’s advocacy and ability to disclose confidential information are limited. In designated agency, affiliated agents can separately represent the buyer and seller, while the broker and supervising brokers act as disclosed consensual dual agents. Ask who will represent you and how the brokerage will handle confidential information before deciding. Michigan agency disclosure and designated agency provisions.

How compensation can work

Broker fees are negotiable. A buyer may pay their brokerage directly or ask a seller or listing brokerage to contribute, subject to the agreements and transaction terms. Ask how any shortfall would be handled. Under NAR settlement practice changes, applicable MLS participants working with a buyer need a written agreement before an in-person or live virtual tour. NAR consumer guide to written buyer agreements.

Key takeaways

• Ask who represents you before discussing your budget or negotiating limits.
• Read the fee, duration and cancellation terms before signing.
• Compare offers on price, contingencies, timing and projected net proceeds.

After 24 years of helping buyers and sellers across Oakland County, I have seen one pattern repeat itself more than any other — people focus on commission and overlook competence. — Tom Gilliam

Frequently asked questions

Who does a buyer agent represent?

A buyer agent represents the buyer within the scope of the agency relationship and helps with tasks such as reviewing comparable sales and negotiating offer terms.

Who does a listing agent represent?

A listing agent represents the seller and can help set a pricing strategy, market the property and compare offers.

When is the Michigan agency disclosure required?

Michigan requires disclosure before the prospective buyer or seller shares confidential information. The disclosure identifies representation and is separate from the service agreement.

Can one agent represent both sides in Michigan?

Michigan permits disclosed dual agency with the written consent of both parties. A dual agent has limits on what they can disclose and how they can advocate for either party.

Does the seller always pay the buyer agent?

Compensation is negotiable. Depending on the agreements, the buyer may pay directly or ask the seller or listing brokerage to contribute. Review any amount you may owe before making an offer.

Do I need a written agreement before touring?

Under NAR settlement practice changes, applicable MLS participants working with a buyer must have a written agreement before an in-person or live virtual home tour. Attending an open house on your own does not trigger that rule.

Recommended reading

• Listing agent vs. buying agent
• Oakland County negotiation strategies

About Tom Gilliam

Tom Gilliam | RE/MAX Classic | 29630 Orchard Lake Rd, Farmington Hills, MI 48334. ABR | SRES | SFR | RE/MAX Hall of Fame | Top 1% Oakland County | 24 Years Experience.