Can a Buyer Work With Multiple Agents?

It is common for individuals navigating the home-buying process to question whether they can work with multiple real estate agents. This is a frequent query for those new to real estate transactions. The appropriate approach depends on various factors, including the type of agreements established and the practicalities of managing multiple professional relationships. Understanding these elements helps a buyer make informed decisions.

Buyer Agency Agreements

The relationship between a buyer and a real estate agent is defined by a buyer agency agreement. This written contract outlines the agent’s responsibilities, terms of representation, and how the agent will be compensated for their services.

One common type is an exclusive buyer agency agreement, which binds the buyer to work solely with a specific agent or brokerage for a defined period or within a particular geographic area. Under this agreement, the agent is entitled to a commission if the buyer purchases a property, even if the buyer finds the property independently during the agreement’s term. The buyer cannot engage other agents from different brokerages without potentially incurring an obligation to their exclusive agent.

In contrast, a non-exclusive buyer agency agreement allows a buyer to work with multiple agents simultaneously. With this arrangement, the buyer compensates only the agent who successfully facilitates the purchase. If the buyer purchases a property without any agent assistance, no commission is owed. Some non-exclusive agreements might initially be “not-for-compensation,” with payment only occurring if the agent helps close a deal.

Other structures, such as designated agency or dual agency, exist where one brokerage or agent might represent both the buyer and the seller. In a designated agency, different agents within the same brokerage represent each party. In dual agency, a single agent represents both. These structures involve a single brokerage managing both sides of a transaction, requiring strict neutrality from the agent, and are distinct from a buyer engaging multiple agents from different brokerages.

Considerations When Engaging Multiple Agents

Navigating the home search with more than one real estate agent involves practical implications. Buyers must communicate effectively to ensure all involved agents are aware of their activities and preferences. Managing the flow of information, such as properties viewed or offers made, avoids confusion among agents.

Working with multiple agents can lead to duplicated effort, where different agents might present the same properties or conduct redundant searches. This creates inefficiencies for both the buyer and the agents. Agents invest time and resources in property searches and showings, and engaging multiple professionals without clear understanding may affect the level of dedicated service an agent provides.

Different agents may possess varying levels of local expertise or access to specific listings, which could broaden a buyer’s market coverage. Buyers assume the responsibility of consolidating and organizing information from various sources. Transparency with all agents about other engagements helps maintain clear expectations and avoid misunderstandings.

Commission and Compensation

Real estate agent commissions, particularly for a buyer’s agent, follow a specific payment structure. Historically, the buyer’s agent’s commission has been paid by the seller as part of the listing agreement, rather than directly by the buyer. Total real estate commissions typically range from 5% to 6% of the home’s sale price, often split between the listing agent and the buyer’s agent.

A central concept in real estate compensation is “procuring cause,” which determines which agent is entitled to the commission if multiple agents were involved. Procuring cause refers to the agent whose efforts initiated an uninterrupted series of events that led to the successful sale. Factors considered include who first introduced the buyer to the property, the continuity of the agent’s involvement, and the effectiveness of their efforts.

Engaging with multiple agents can complicate the determination of procuring cause, potentially leading to disputes between agents or their brokerages over who is owed the commission. These disputes are resolved through arbitration by real estate boards, based on guidelines such as the National Association of REALTORS® Code of Ethics. While these disagreements are generally between agents and brokerages and do not directly increase the cost for the buyer, they can create an uncomfortable situation.

To minimize commission-related issues, clear communication with all involved agents is important. Buyers should understand the terms of any signed agreements, particularly regarding compensation and exclusivity. Transparency about working with multiple agents from the outset helps prevent misunderstandings and disputes.