Agent Roles and Compensation
Real estate transactions involve several agent roles with distinct duties and loyalties. The listing agent (seller's agent) represents the seller's interests — they price the property, market it, negotiate on the seller's behalf, and are legally bound to maximize the seller's outcome. The buyer's agent represents the buyer — finding properties, advising on offer price and terms, and advocating for the buyer's interests. Historically, both agents were paid by the seller from the sale proceeds — total commission was typically 5–6% of the purchase price, split between listing and buyer's agents. Following the 2024 NAR settlement, this practice changed significantly: buyers must now sign written buyer representation agreements specifying compensation upfront, and buyer's agent compensation is no longer automatically guaranteed by the seller. A dual agent represents both buyer and seller in the same transaction — this is legal in most states but creates an inherent conflict of interest since the agent cannot fully advocate for either party. Buyers choosing dual agency should understand they effectively have no exclusive advocate. Transaction brokers take a neutral administrative role without representing either party. Before signing with any agent, understand: who they represent, how they are compensated, and what they are obligated to do or not do on your behalf.