What Buyers in Tennessee Need to Know about Working with Real Estate Agents

Whether you’re buying or selling a home, it’s important to work with a trusted real estate professional. Doing so ensures that you have an experienced advocate that can help navigate every phase of the process, understands the local market and will serve as your advocate through one of the largest purchases or sales of your life. 


When selling a property, the relationship between seller and agent is often pretty straight-forward. The seller selects an agent, and then the parties enter into a contractual relationship that outlines the terms of the relationship and gives the agent an obligation to work for the seller and the seller’s interests. 


For buyers, the relationship is sometimes less clear. Buyers often look at properties with agents or talk about buying a property without entering into a formal relationship. This can lead to some issues. Here are a few things that buyers need to know about the agency relationship in Tennessee to ensure that they’re adequately represented and that their interests are being protected. 


Agency Status in Tennessee

Informal relationships often develop between buyers and buyers’ agents. While this isn’t all bad, it’s important for buyers to understand that under Tennessee law there is no implied agency status. This means that to enter into an agency relationship, the buyer and agent must sign an agreement, usually known as a Buyer Representation Agreement. 


This agreement establishes the agency relationship and outlines the terms of the relationship. The signing of this agreement contractually binds the parties together and requires the agent to be the buyer’s advocate throughout all phases of the process, from looking at houses to making an offer, negotiating, and closing the deal. 


It’s key for buyers to understand the importance of entering into a Representation Agreement. Without it, there is no official relationship and an agent is simply showing the buyer houses or offering guidance as a courtesy. Or, they are showing a house and offering advice as a courtesy to a seller. 


The bottom line is that without a signed agreement, real estate agents have no obligation to represent a buyer’s interest or serve as their advocate. 


For more information about buying or selling homes in Tennessee, contact TN Smoky Mtn Realty. Our team of professionals understands the Pigeon Forge, Sevierville, and Gatlinburg markets and can help guide you through every phase of buying or selling a property in the area.