The Complete Guide for How to Choose and Hire a Realtor
Navigating the real estate market can feel overwhelming, whether you’re buying or selling or if it's your first time or your fifth. Having the right representation makes all the difference.
Last year, the real estate industry made headlines with real (and fake) news about what Realtors® do, how they represent their clients, and how they get paid. Despite Utah having led the way in required and encouraged client disclosures, the misinformation ran rampant.
This guide is meant to clear it up, set the tone, and help you feel confident the next time it comes to buying, selling, or investing in real estate.
Ultimately, your Realtor® is your advocate, your negotiator, your marketer, your advisor, and your guide to helping you achieve your goals while ensuring a smooth, stress-free transaction.
Understanding Representation
Real estate agents play distinct roles depending on who they represent in a transaction. Knowing how these roles work can help eliminate confusion and help you make informed decisions throughout your buying or selling journey.
Listing Agents Represent the Sellers
A listing agent represents the seller of the property on the market. They are often known as the person responsible for showcasing the property in the best possible light to attract buyers.
However, beyond professional marketing and staging, they are also the ones who negotiate on their seller’s behalf and also with the sellers themselves.
They help to outlay pricing strategies, clarify contract specifics, and optimize terms for a smooth transaction for all parties. Crucially, they also protect the property from unqualified buyers, maintain seller privacy, and coordinate access.
Buyer’s Agents Represent the Buyers
A buyer’s agent represents the buying party’s interests throughout the home search and buying process. Despite their name, the buyer’s agent actually begins their work long before the buying takes place.
They serve as the primary guide through the process, from providing referrals to reputable lenders to helping buyers define the property characteristics they need and want to identify on and off-market opportunities all the way through negotiations and beyond.
Buyer’s agents must be well-versed not only in the relational aspects of the work but also be fierce and strategic negotiators to help secure the right terms for their clients.
Dual Agency: One Agent, Two Clients
Dual agency, while uncommon, can happen in the industry. Dual agency occurs when one agent represents both the buyer and the seller in the same transaction. This is particularly common when unrepresented buyers reach out to a listing agent and need representation to facilitate their purchase of the property.
It can also happen when the buyer is known to the seller, and both still want each side represented. Dual agency requires strict neutrality with additional forms and acknowledgments required by both buyer and seller to ensure fiduciary responsibility and fairness.
Designated Agency: Two Agents, Two Clients, One Brokerage
In a designated agency arrangement, a single brokerage has separate agents representing the buyer and the seller within the same transaction. This most often happens when a listing put on the market by one agent meets the needs of their colleague’s client. However, this ensures that each party has its own dedicated representation that can individually advocate for their respective clients’ needs.
How Realtors® Get Compensated
We get it. Most people don’t want to talk about money. However, we don’t feel that way at Blakemore Real Estate. Here’s what you need to know:
The Listing Agent’s brokerage receives a commission equal to a percentage of the sale price as designated in the Exclusive Right to Sell (ERS). In that agreement, the seller outlines the percent payable from that brokerage to both the listing agent themselves and the collaborating buyer's agent.
The Buyer’s Agent must also have a Buyer Broker Agreement (BBA) signed by their buyer, outlining the commission terms the buyer is willing to pay.
When both enter the market, a few scenarios can take place:
100% Seller-Paid Commission: The ERS (Seller) and BBA (Buyer) commission terms match, so the seller pays 100% of the buyer’s agent commission as closing costs.
Partial Seller-Paid Commission: The ERS (Seller) offers a lower commission than what’s outlined in the BBA (Buyer) requiring the buyer and buyer’s agent to negotiate terms to bridge this gap.
100% Buyer-Paid Commission: The ERS (Seller) offers no buyer’s agent commission, making the buyer 100% responsible for the terms in their BBA. Some buyers negotiate to roll this cost into their purchase offer.
The good news is that the 2024 news surrounding these topics reflected concerns at the national level and didn’t take into account the pre-existing disclosure and transparency processes happening at the Utah state level and within many brokerages. For the last 30 years at Blakemore Real Estate, we have walked our clients through all possible compensation structures so they know exactly what to expect on all sides.
How to Pick the Right Realtor® to Represent You
Hiring the right agent is about more than just finding someone who can facilitate a transaction and open doors—it’s about choosing an advocate who will go above and beyond to protect your interests. Here’s what to look for:
Strategic Offer Guidance: In a competitive market, a well-crafted and well-positioned offer is critical. The right representation will help you structure and interpret the most advantageous offer for your financial position.
Market Expertise: The right representation will have a deep understanding of the local market, trends in neighborhoods, and market-ready pricing strategies to ensure you make informed decisions, whether you’re buying or selling.
Access to Off-Market Listings: The right representation will be a well-connected agent with a strong network in the industry to gain access to exclusive, off-market properties, giving you a competitive edge in your search.
Confident Negotiator: The right representation will have expert negotiation skills and know how to create Win-Win-Win scenarios from purchase price to contingencies to timing.
Seamless Transaction Management: From paperwork to inspections, the right representation ensures every detail is handled efficiently and thoroughly, minimizing stress and keeping you on track for a successful closing.
Long-Term Financial Insight: Real estate is one of the most significant investments you’ll make. The right representation knows and shares the strategies to help you build long-term wealth by guiding you through financing options, equity-building plans, and market timing.
Continued Support After Closing: The relationship doesn’t end at closing. The right Realtor® will always remain a resource for homeowners, whether you need vendor recommendations, market updates, or future real estate planning.
We believe in creating lasting relationships built on trust, expertise, and personalized service. Whether you’re buying your first home, selling an investment property, or exploring new opportunities, we’re here to guide you every step of the way.
