Subagent vs. buyer’s agent
Understanding the difference between a traditional subagent and a buyer’s agent is important when navigating the real estate market. Here are the key distinctions:
- Loyalty: A subagent’s loyalty is to the seller, as they are aligned with the listing agent’s obligations. In contrast, a buyer’s agent owes their fiduciary duties entirely to the buyer, advocating for their interests throughout the transaction.
- Confidentiality: Buyer’s agents will keep your information confidential and work to secure the best deal for you. Subagents, however, protect the seller’s information and interests.
- Advice and support: While subagents can facilitate viewings and provide information about the property, they cannot guide you on negotiations or offer insights that would benefit you over the seller. A buyer’s agent will negotiate on your behalf, aiming to secure the best terms and price.
Choosing to work with a buyer’s agent ensures you have a professional in your corner, fully committed to your real estate success. HomeLight can connect you with the highest-rated, most experienced buyer’s agent in your selected market.
Are traditional subagents common in real estate sales?
Subagents, as described above, used to be more prevalent in real estate before buyer representation became widely recognized. A big reason for this decline is the risk of legal liability that subagents can introduce into a transaction. If a subagent makes a mistake or violates a disclosure law or other legal obligation, the listing broker and seller can be held responsible, which can cause complications for everyone involved.
Today, their prevalence varies significantly by region and local real estate practices. In some states, these seller-loyal subagents are still commonly involved in transactions, especially where traditional methods prevail. In other states, subagents are banned by law.
As buyer awareness has increased and more home shoppers choose to have exclusive buyer’s agents, the role of traditional subagents has diminished in many markets.
What’s the more modern definition of a subagent?
To see past the outdated role and definition of a subagent, we spoke to Larry Mastropieri, a top agent and broker/owner in Boca Raton, Florida, with more than 20 years of experience.
“How we think about the definition of subagent is, it’s a person that is hired by myself (the broker) to help me support our clients — both buyers and sellers,” Mastropieri says. “In most cases, these are licensed agents who might be newer in the business or older in the business, but they work to help us open doors.”
Mastropieri explains that this definition represents the modern role of a subagent. “They’re boots on the ground helping clients get access and facilitate the necessary things that are needed on the ground in a real estate transaction. These agents show up for inspections or handle other fieldwork that I don’t have the bandwidth to do.”
What does a modern subagent do?
“We use a real estate agent for a subagent in our day-to-day business,” Mastropieri says. “They are part of the whole experience at the client’s home when we’re listing a property.”
He provides this list of example duties that a modern subagent might handle:
- Help prepare the house for photos and showings
- Meet with photographers and ensure photos are handled properly
- Attach lock boxes and confirm the keys are correct
- Add sign riders (smaller signs that attach to for-sale signs)
- Meeting a service vendor at the property
- Attending open houses and showings
“On the buy side, when a buyer calls us and wants to work with me directly and doesn’t want to work with one of the other agents, I tell them, ‘Okay, no problem, but I will not likely be showing you all the properties. I might be showing you some, but my subagent will be facilitating and opening the door for some of the showings, be at the inspection, meet vendors…anything that’s required at the property to make sure the deal gets done.’” Mastropieri says.
Mastropieri differentiates his definition of subagents by using the term “primary agent” to describe the agent with direct responsibility for the buyer or seller.
“A primary agent is the one typically managing the relationship with the client,” he says. “The primary agent is responsible for closing that deal, and they’re responsible for the subagents. The subagent has less responsibility…they update and notify the primary agent responsible for moving the transaction forward.”
New commission rules may impact subagent roles
In March 2024, the National Association of Realtors (NAR) announced a landmark lawsuit settlement that is expected to change the way agent commissions are handled. These changes will “decouple” seller and buyer agent compensation. Industry experts predict that this decoupling will reshape how agents get paid and how brokers like Mastropieri run their businesses.
“As the market changes with the new rules and regulations for real estate agents, it’ll be interesting to see how subagent roles change,” Mastropieri says. “We’ll see where this all goes. There’s a possibility that there will be more subagents in the market — but there’s also the possibility that there will be less.”
Partner with a trusted buyer’s agent or team
In today’s housing market, subagents — in the traditional sense — are much less common. Homebuyers today can hire specialized agents and even teams to represent them directly. In addition, new commission rules on the horizon will allow buyers to negotiate commission amounts directly.
If you’re using a team with modern subagents, as Mastropieri describes them, these professionals can work together to help you land the best deal and improve your entire experience.
“From a buyer or seller’s perspective, the client experience is better when a [modern] subagent is involved,” Mastropieri says. “They follow the same rules in the agreement that we’ve signed with the buyer or seller.”
He adds, “It’s going to vary between states, but our subagents are not getting into negotiating contracts. As the broker, I’m the one that’s going to be getting into the details.”
At HomeLight, we’ll be happy to connect you with a trusted top buyer’s agent or buyer team. We analyze over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs.
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