Most people in the middle of a real estate transaction don't fully understand who their agent is actually working for. This matters more than most people realize — the legal duties of a buyer's agent and a seller's agent are fundamentally different, and getting this wrong can cost you negotiating leverage or leave you without legal recourse when something goes wrong.
The Basic Distinction
A seller's agent (also called a listing agent) is hired by and represents the seller. Their fiduciary duty is to the seller: they are legally obligated to negotiate the highest possible price and most favorable terms for the person who listed the property with them. If you walk into an open house and start talking freely to the listing agent, you are talking to the seller's representative.
A buyer's agent represents the buyer. Their fiduciary duty runs to you — they are legally obligated to act in your best interest, which includes negotiating the lowest price, identifying defects, and advising you on whether to walk away from a bad deal.
If you tour a home without a buyer's agent and speak directly with the listing agent, that agent's legal loyalty is to the seller, not to you. Everything you say can be used by the seller in negotiations.
What Changed After August 2024
In August 2024, as part of a nationwide settlement with the National Association of Realtors (NAR), the real estate industry adopted new rules that affect how buyer's agents are compensated.
Before the settlement: Sellers typically paid a total commission of 5–6%, which was split between their agent and the buyer's agent. Buyers essentially got their agent "for free" — the cost was embedded in the transaction.
After the settlement:
- Sellers are no longer required to offer any compensation to buyer's agents through the MLS
- Buyers must sign a written Buyer Representation Agreement specifying agent compensation before touring homes
- Buyers and buyer's agents negotiate compensation directly
- Sellers can still choose to offer a concession that covers buyer's agent fees — and many Bronxville sellers do — but it's now a negotiating point, not an automatic
In practice, Bronxville's high-price market has adapted. Many sellers continue to offer concessions because it broadens their buyer pool. But as a buyer, you should now understand your agent's fee before you start touring, and factor it into your offer strategy if the seller is not offering to cover it.
Dual Agency: What It Is and Why It's Complicated
Dual agency occurs when the same agent (or the same brokerage) represents both the buyer and the seller in the same transaction. New York State allows this — but requires written disclosure and informed consent from both parties.
The problem with dual agency is structural: a single agent cannot fully advocate for both sides simultaneously. They cannot tell the buyer that the seller is desperate and would accept a lower offer. They cannot tell the seller that the buyer loves the home and would pay more. Their fiduciary duty is effectively neutralized in both directions.
Is dual agency ever okay?
Some buyers deliberately choose to work with the listing agent on a property they've identified themselves, believing it may give them an advantage in negotiations (since the agent earns both commissions on the same deal). This can work — but it requires that you enter with eyes open, ask the right questions about financing, and have your own attorney thoroughly review the contract. You should never rely on a dual agent for substantive deal advice.
New York State law requires that dual agency be disclosed in writing. If an agent fails to disclose it, you have legal grounds to void the contract. Ask at the start of every agent interaction: "Who do you represent in this transaction?"
How This Plays Out in Bronxville Specifically
Because Bronxville is a small market with a relatively small number of active listings at any given time, there's a higher-than-average likelihood that the listing agent or their brokerage will also be involved with buyers. Several of Bronxville's active brokerages operate as full-service firms representing both buyers and sellers on local transactions.
This is not inherently problematic — but it's worth understanding before you engage an agent. Ask directly:
- "Do you also represent sellers of properties I might want to tour?"
- "If a dual agency situation arises, how does your brokerage handle it?"
- "Will I still have a fully dedicated buyer's agent if you also have the listing?"
Choosing the Right Type of Representation
| Situation | What You Need |
|---|---|
| You're buying and haven't identified a property yet | A dedicated buyer's agent with Bronxville transaction history |
| You're selling and want maximum sale price | A listing agent with strong Bronxville marketing presence |
| You've found a property and want to make an offer | Your own buyer's agent (not the listing agent) |
| You're considering approaching the listing agent directly | Understand the dual agency implications first; hire your own attorney regardless |
Your Rights Under New York Law
- You have the right to know who your agent represents before you disclose anything material
- You have the right to refuse dual agency — you can insist on a dedicated buyer's agent even within the same brokerage
- You have the right to negotiate buyer's agent compensation — it is no longer set by industry custom
- You have the right to review and negotiate the Buyer Representation Agreement before signing it
- You are entitled to have your own attorney at closing regardless of what the seller's or listing agent's brokerage recommends