Hi Anita, Allow me to explain fiduciary responsibility in a simple way. First , when a home comes on the market a Realtor will have listed it (the Seller's agent). The Seller's agent has a responsibility to show their client good care and ONLY work in the best interests of their client. The Buyer's agent has that same fiduciary responsisbility to THEIR client. Represent their client's best interest at all times.
a person bound to act for someone else's benefit, as a trustee
of or relating to a trust or trustee [Latin fiducia trust]
You have a point in that we ALL work for the Seller since they are paying us. The difference is this: The Seller has a professional relationship with their listing agent. The Buyer's agent will not likely ever have a chance of procurring referrals from the Seller. Like Patti said, we compete for clients and expect to receive referrals for doing that "great" job. We want OUR client's referrals, period, and "great" agents love to talk about how much we saved our clients or how well the terms suited our clients wishes and needs. Bragging rights rule. :)
Here is a simple picture.......... 1,000,000.00 house = appx. $28,000.00 commission
If you paid 10% TOO much..... 1,100,000.00 paid = appx $2,800.00 increase in commission
When you figure out you paid too much.....that agent will never see a referral from you and that is a loss of, at least, $25,000.00 for a similar future referral. You see what that will do to an agent's future in the Real Estate business? Nothing positive right? For example: Last year my business relied on a 92% referral basis.