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Selling a home is not always a walk in the park but it is a big step that will take time. It is important that you get the best out of selling your home, so hiring a real estate broker is one of the best options you will have. Real estate brokers offer three types of representation; single agent, transaction broker, and non-brokerage.

Non-Brokerage Representation

Sellers who want to sell their homes on their own are known as For Sale by Owner, and will usually have non-brokerage representation.  On rare occasions, an agent will ask the owner for permission to show the house to a potential buyer. The seller has the option to allow or decline the agent’s request. If they allow the showing and the buyer makes an offer and the sale goes through, the agent will receive a commission based on an agreement between the seller and agent.  Before the agent can show the house they will have to have the seller sign a non-brokerage agreement that will be valid for the individual buyer. Owners who find a buyer but want a agent handle the legalities and paperwork will also use this option.

Transaction Broker Representation

This is the most frequently used option for sellers. The agent will provide limited representation or the seller as well as the buyer. This is beneficial for both parties involved, as the broker can list and show the property. If the agent sells the house, they will receive a commission from both the buyer and seller. The law requires that the agent does not provide the seller with the maximum amount the buyer is willing to offer or the buyer the minimum the seller is willing to take.  This is in place to protect both the buyer and seller’s best interest. In short, the agent offers advice on selling and buying, but not the negotiating process.

Single Agent Representation

This option is used when an agent works as the only agent for the seller or buyer, but not both. If the agent has their contract with the seller they can list the home but not show it to the buyer. With this option there needs to be two separate firms handling the sale and purchase of the home, one for the seller and one for the buyer.  The firm will help with the negotiation process with the party they are in contract with. This option is the least likely to use because it is very limiting and can hurt both parties involved.

These relationship disclosure regulations do have some exceptions. The one widely known is the model home showings. This is allowed as long as the agent is not requesting confidential information, or entering into a contract offered. As long as this is the case, there will be no need for a representation relationship.

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