a “For Sale By Owner” (FSBO) house and IF the seller agrees to reduce the price by 2.5% - 3% (half of what a listing agent may have received), for many, a do-it-yourself home purchase many times ends up being more costly than what someone might have saved on a real estate agent’s commission in the long run. In most home sales, there is a “listing agent” (the agent hired by the seller to sell the property) and a selling agent (the agent who brings the eventual buyer into the transaction). The selling agent is sometimes also referred to as the “buyer’s agent” because he or she is often working on a buyer’s behalf and it’s easier than explaining that the selling agent is not the listing agent but is really the buyer’s agent. Some real estate agents market themselves as “buyer’s agents,” “exclusive buyer’s agents,” or “buyer’s representatives.” These real estate agents have chosen to make it their primary focus and business of finding homes for prospective buyers and handling the negotiations and transactions relative to those purchases. These agents, just like any good buyer's agent, should accentuate the many reasons (explained in the next couple of paragraphs) a buyer shouldn’t go directly to the listing agent when they purchase real estate. There are also agents like me that choose to work on both sides of the field. I can act as a buyer's agent when solely representing a buyer or a listing agent when solely representing a seller. I feel it is good to know both sides as it helps when negotiations begin no matter who I am representing. This ongoing exercise on being able to know both sides keeps me knowledgeable and sharp for whichever side I represent. However, with that said, I will never work as a dual agent who represents both sides of the same property transaction. Dual agents are allowed in Illinois and many other states but are illegal in some states as well. I feel that acting as a dual agent is unethical. There is more on dual agency below and later in this chapter.
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