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Who Does Your Real Estate Agent Represent?

If you are planning to buy real estate remember these important points which are often blurred by misuse or misconceptions in everyday real estate practice:

Misconception #1: When purchasing a home, the real estate agent is representing only you in the transaction.

WRONG! In most cases, that agent is a sub agent of the listing agent and is bound to help the seller get the highest price possible. In the normal course of business, the seller's agent (Listing Agent) lists the property and puts it into the multiple listing service. Any Agent who shows the listed property works as a sub agent of the seller's agent and is required to negotiate on behalf of the seller, the highest purchase price and terms for the seller. The only way an agent can represent you alone, as a buyer, is for you to enter into a written agreement with the agent through, for example, the Exclusive Authorization to Locate Property (Buyer-Broker Agreement), written and distributed by the California Association of Realtors, Form ABB-14.

Misconception #2: When a buyer purchases a home through a real estate agent, the buyer will see all of the properties that are available in the area selected.

WRONG! Most agents will show a buyer his own office listings first, followed by those of other Seller's Agents (Listing Agent) listings, so that he is assured of receiving a commission when the buyer purchases a property. Most buyers will never see the foreclosures, probated properties, or "for sale by owner" homes, because the agent is not guaranteed a commission from such sales. Many times the agent knows of the perfect home for the buyer but won't show it because the owner refuses to pay a commission. If you have a Buyer-Broker Agreement with an agent, you see all available properties because the agent knows that if you purchase a property, a commission or fee will be paid.

Misconception #3: The Seller pays the commission.

WRONG! A commission is not paid until the property sells. If a buyer does not buy, there is no commission. The commission is paid from the buyer's funds. The commission is built into the price of the listed property.

These points raise very important questions:

  • Who is the agent working for?
  • Who does your agent really represent?
  • Who is paying the agent's commission ?
  • To whom does the agent owe fiduciary responsibility?


An attorney would never represent both the plaintiff and the defendant in a lawsuit. By the same token, buyers and sellers of real estate should have separate and exclusive representation.


Gold Line

Definitions: (Webster's Dictionary)

a person who purchases goods or services
a person under the protection of another
a person who engages the professional advice or services of another

As a buyer, you need proper agent solely to represent you, not the seller.

Be a client rather than a customer.

When you decide to contract with the Buyer's Broker Inc*, you have our pledge that we will represent only you, the Buyer, and we will always keep your best interests in mind.

John J. Rygiol
Buyer's Broker Inc

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John J. Rygiol & Associates
Exclusive Buyer's Brokers for ALL of California
499 North Canon Drivewhite_star.gif - 1.04 K Beverly Hills, CA 90210

CA Broker's Lic 00401374

                       100% HomeBuyer Representation 100% of the Time!

                                       Buyer's Broker Inc CA BRE Lic# 01401569
8001 Irvine Center Drive Suite 400 Irvine CA 92618

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