Learn the difference between a Client and Customer Relationship.
In today’s real estate market, we are seeing more buyers purchasing a home without the assistance of their own designated agent to represent their interests. These buyers are opting to go directly to the listing agent under the misconception that they will be able to secure a better deal and have higher bidding priority. Additionally, these buyers assume that the listing agent and sellers may cut the commission being charged since only one agent will be involved in the transaction, so they’ll get the home cheaper. However, for the most part, this is certainly not the case.
When a buyer goes directly to the listing agent, that listing agent has two options. The agent can enter into a “limited dual agency” agreement, in which they give limited representation to both buyer and seller (with both parties’ consent). Or they can enter a customer relationship agreement, where no representation is given. Since limited dual agency relationships are far less common today than they have been in the past, I will focus this article on the differences between client (designated agent) and customer relationships.