There is a difference. A number of surveys of home buyers have indicated that up to 70% of home buyers believed that the real estate professional assisting them in their property search and purchase was representing them, the buyer, even though in many cases the agent was representing the seller, his/her client. In this scenario, the buyer was the agent’s customer.
This shouldn’t happen in Wisconsin as we have strict agency disclosure laws, but I know that in fact that there is some confusion at times on the buyer’s part. For instance, in the Northwoods, a high percentage of our buyers are from out-of-state, particularly Illinois. My understanding is that in Illinois if a buyer starts working with an agent in the purchase of the home, that agent is by default representing the buyer in the transaction, i.e., they have a client/agent relationship. It does not work like that in Wisconsin.
In Wisconsin, a consumer, whether a buyer or seller, can obtain client status only by entering into a written agreement (listing contract or buyer agency agreement.) Absent a contract, the buyer is the real estate professional’s customer. Now, I hasten to add that, whether client or customer, the realty professional owes the duties of confidentiality, of providing accurate information, of disclosing of material adverse facts, of fair and honest treatment, and other duties, equally to both customers and clients. However, an agent owes a client more. For instance, as one would expect, a broker (agent) must put the client’s interests ahead of his or her own. But here is the big difference: The broker cannot (unless required to do so by law) give information or advice to other parties who are not the broker’s clients if giving that information or advice is contrary to the client’s interests.
Essentially, what all this means, is that if you come to me for assistance on locating and purchasing a property, I will do all that I can to locate the property that is right for you; I will treat you fairly, honestly, and professionally; I will provide all the accurate information that you need to make an informed decision; I will keep all confidences; during negotiations I will present all contract proposals in an objective and unbiased manner and disclose the advantages and disadvantages of the proposals; but if you are my customer (i. e., we do not have a buyer agency agreement) I cannot and will not ever say anything like, “Yeah, the property is over-priced; I suggest offering $40,000 less and then hanging tough.” This is because in this scenario I am acting as a sub-agent of the listing broker and to say something like that would be contrary to the seller’s (the client) interests.
If you, as a buyer, require those additional duties and services from your real estate broker, I suggest entering into a buyer agency agreement with that broker.