Loyalty. In real estate an agent has a fiduciary duty of loyalty to act in the best interest of "their client." If you are not the agent's client, you are "a customer" and the agent has no fiduciary duty of loyalty. 

The Listing Agent's "client" is the Seller. The law of agency requires them to be loyal to the Seller. Obviously, if you ask the Listing Agent if the home is priced fairly, their answer will be, "yes" because that is the price they and  their client chose based on their opinion.  A Seller's agent often helps their client sell their current home, as well as, find and purchase a new home but the agent's loyalty is always to their client.  

Buyers are entitled to and need someone loyal to them. The Buyer needs the professional opinion of someone with a duty to work in their best interest. Buyers need their own agent whom they can call to schedule private showings of homes listed for sale; research market history of those homes so the buyer will know if the home is priced right or high for the area; prepare the necessary paperwork for the buyer to make an offer if interested; and assist the buyer through the buying process to assure their rights are protected if their offer is accepted by the Seller.

Sometimes a Listing Agent will prepare paperwork for a buyer without an agent to make an offer on their listing, this is called "dual agency." An agent can become a “dual agent” if their client, the Seller, gives them written permission. However, the agent must then maintain a neutral position between the buyer and the seller. They may not advocate the position of one over the other. They cannot advise the buyer if the home is overpriced for the area and current market, so the buyer does not benefit from the professional opinion of their own agent. Since the Seller has already discussed the current market with the agent before listing the home for sale, they've already benefited from the professional opinion of an agent. 

Both the Seller's Agent and the Buyer's Agent are compensated on a contingency basis when the property sells. Their compensation is based on the listing contract between the Seller and the Broker marketing the property for sale. Contingency fee agreements make it easier for the general public to buy and sell real estate without having to pay an up front or out-of-pocket fee. 

For a better understanding about who represents who in a real estate transaction, see the Consumer Guide to Agency Relationships at https://com.ohio.gov/static/documents/real_Seller_Agency-pamphlet_update.pdf

style="font-size: 12pt; font-family: arial, helvetica, sans-serif;">For more information on agency law in Ohio, contact the Ohio Division of Real Estate & Professional Licensing at (614) 466-4100, or online at www.com.ohio.gov/real.