Customer or Client?

What’s the difference?

Have you ever had a REALTOR say that your their Customer or Client?  There is a lot of confusion over this wording.  Do you know what the REALTOR means when they say that you are “their Client”?  What about a Customer?  Do you REALLY know the difference?  Who does it benefit you to be a Client versus a Customer?  I will try to explain…..

If you are the Buyer:

• If you’re a client, a buyer’s agent will seek to negotiate the most favorable transaction terms for you—and will not disclose any material facts about your situation that could hurt your negotiating position.
• If, however, you are only a customer, a buyer’s rep may not be in a position to answer even basic questions, such as “Why are they selling?” or “Is this home priced competitively?” This is because they are acting instead as a sub-agent for the seller.

YOUR SERVICES WILL VARY, DEPENDING ON YOUR STATUS.

If you are a CLIENT (fiduciary relationship), your agent will:

Pay full attention to your needs

Tell you all that they know about the seller

Keep information about you confidential

Focus on choices that satisfy your needs

Provide material facts as well as professional advice

Provide price counseling based on comparable properties and their professional insights

Protect and guide you

Negotiate on your behalf

Attempt to solve problems to your advantage and satisfaction

If you are a CUSTOMER (no fiduciary relationship), an agent will:

Maintain loyalty to the seller’s needs

Tell the seller all that they know about you

Keep information about the seller confidential

Focus on the seller-client’s property

Provide just the material facts

Only provide price information that supports the seller’s listing price

Protect the seller

Negotiate on behalf of the seller

Attempt to solve problems to the seller’s advantage and satisfaction

* Note that not every state or Agency requires a signed Buyer’s Representation Agreement to create an agency relationship. In some cases, an agency relationship can be formed if both parties simply behave as if one exists.