When you buy a home in Berks County, there can be different types of representation to take care of the sale. The legal relationship you have with a real estate agent is called an agency relationship.
Here are 3 possible ways you can be represented during the home buying process.
If you're a buyer, you can hire an agent who represents only you during the sale. This this called exclusive buyer’s representative or agent.
You can pay your buyer’s agent yourself, or ask the seller, or the seller’s agent, to pay your agent a share of their sales commission.
If you're the seller, you can hire an agent to list it exclusively. This is a called a selling representative. Typically, you pay a selling agent a commission at closing. Selling agents usually offer or agree to pay a portion of their sales commission to the buyer’s agent. If your seller’s agent brings in a buyer, your agent keeps the entire commission.
Disclosed Dual Agency
In some cases, an agency can represent both buyer and seller of a home as long as that relationship is fully disclosed. This is called a disclosed dual agency. Because dual agents represent both parties, they can’t be protective of and loyal to only you.
When would this type of agent come into play? Let's say you want to buy a home that's listed by the same brokerage where your agent works. That;s when the brokerage would represent both you and the seller.
Because there’s a potential for conflicts of interest with dual agency, all parties must give their informed consent.
A form of disclosed dual agency, “designated agency” allows two different agents within a single firm to represent the buyer and seller in the same transaction. To avoid conflicts that can arise with dual agency, some managing brokers designate or appoint agents in their company to represent only sellers, or only buyers. But that isn't required for designated agency. A designated, or appointed, agent will give you full representation and represent your best interests.
Are you looking to buy or sell a home in Reading and the surrounding communities of Blandon, Boyertown, Douglassville, Exeter Township, Fleetwood, Kutztown, and Oley? Start the process now with our powerful property search tool. And make sure to come back to our blog every week for more Berks County real estate advice and local articles.