Understanding the 4 Types of Real Estate Agencies in Virginia

What Every Home Buyer and Seller Should Know Before Working with a Realtor

Whether you're buying your first home or preparing to sell, one topic that isn't always exciting—but is incredibly important—is understanding the different types of real estate agency relationships.

The type of agency you have with your Realtor determines who they represent, whose interests they protect, and what responsibilities they have throughout the transaction.

If you're planning to buy or sell a home in Rockbridge County or the surrounding area, here's an overview of the four types of real estate agency and why it's important to understand them before you begin working with an agent.

1. Seller's Agency

When you hire a Realtor to list your home, you enter into a seller's agency relationship.

As your listing agent, the Realtor has a fiduciary responsibility to represent your best interests throughout the transaction. That includes:

• Helping you achieve the highest and best value for your home

• Keeping confidential information private

• Providing guidance throughout the selling process

• Representing your interests every step of the way

When you're selling your home, your listing agent's responsibility is to advocate for you.

2. Buyer's Agency

A buyer's agent represents the interests of the homebuyer.

Over the past couple of years, buyer representation has received increased attention following changes in the real estate industry. Today, buyers are typically required to sign either an exclusive buyer agency agreement or a one-time showing agreement before touring homes with a Realtor.

When you work with a buyer's agent, their job is to represent your interests by:

• Helping you find the right home

• Looking for opportunities before homes hit the market

• Negotiating the best possible terms

• Protecting your interests throughout the purchase process

Just like a listing agent works for the seller, a buyer's agent is committed to representing the buyer.

3. Dual Agency

The third type of agency is one that many people aren't familiar with: dual agency.

Dual agency occurs when one agent represents both the buyer and the seller in the same transaction.

When that happens, the agent becomes a neutral third party. While they can still manage the transaction, they can no longer fully advise either side because they owe duties to both parties.

This is why it's important to ask an agent about their approach to dual agency before you begin working together.

At Harmony Home Team, we've made the decision not to practice dual agency. Instead, if one of our listings is the right fit for a buyer we're working with, another agent on our team represents the buyer so each client continues to receive full representation.

That means both buyers and sellers have someone who can provide advice on important decisions like pricing, negotiations, inspections, and other aspects of the transaction.

4. Designated Agency

The fourth type is designated agency.

This typically applies when agents work under the same brokerage but represent different clients in the same transaction.

For example, everyone on the Harmony Home Team is affiliated with eXp Realty. If one team member represents the seller and another represents the buyer, those agents become designated agents.

Although they share the same brokerage, each agent continues to fully represent their own client's interests. The designation simply serves as a disclosure that both agents operate under the same broker.

Why Understanding Agency Matters

Real estate agency may not be the most exciting part of buying or selling a home, but it plays an important role in understanding who is representing you throughout the process.

Before choosing a Realtor, it's worth asking:

• What type of agency do you practice?

• How do you handle situations involving dual agency?

• If circumstances change during the transaction, how will my representation be handled?

Knowing the answers upfront helps ensure you understand what to expect and that your interests remain protected.

Have Questions About Real Estate Agency?

Whether you're buying your first home or preparing to sell, understanding your agency relationship is an important part of the process.

If you have questions about real estate agency in Virginia or want to learn more about how the Harmony Home Team represents buyers and sellers, we'd be happy to help. Reach out anytime—we're always happy to bring clarity to the home buying and selling process.