Difference Between A Client And A Customer In Real Estate
Introduction
Real estate is a complex industry that involves numerous terms and concepts. Two such terms that are often used interchangeably are ‘client’ and ‘customer.’ While both refer to individuals who are interested in buying or selling property, there is a significant difference between the two. It is essential to understand the distinction between the two terms to make informed decisions when navigating the real estate market.
What is a Client?
A client is an individual who has entered into an agreement with a real estate professional, such as a real estate agent or broker. This agreement is usually in writing and outlines the scope of services that will be provided by the real estate professional. Clients are entitled to receive the highest level of service and protection from their real estate professional.
When a person becomes a client, they are represented by the real estate professional. This means that the agent or broker has a fiduciary duty to act in the best interests of their client. They are required to provide their clients with loyalty, confidentiality, full disclosure, and accountability. The real estate professional will negotiate on behalf of their client and ensure that they get the best possible deal.
What is a Customer?
A customer, on the other hand, is an individual who is interested in buying or selling property but has not entered into an agreement with a real estate professional. Customers are not represented by real estate professionals and are not entitled to the same level of service and protection as clients.
Real estate professionals have a duty to treat customers honestly and fairly. However, they do not owe customers the same fiduciary duty that they owe their clients. This means that real estate professionals are not required to act in the best interests of customers. They are not obligated to negotiate on their behalf or provide them with confidential information.
What are the advantages of being a Client?
There are several advantages to being a client in the real estate market. Firstly, clients receive the highest level of service and protection from their real estate professional. They are represented by a professional who is required to act in their best interests and negotiate on their behalf.
Clients receive confidential information from their real estate professional, which can give them an advantage in negotiations. They also have access to a wider range of properties and can receive personalized advice on the properties that they are interested in.
What are the advantages of being a Customer?
There are some advantages to being a customer in the real estate market. Customers are not tied to any one real estate professional and can work with multiple professionals to find the property that they are looking for. They also have more control over the buying or selling process and can negotiate directly with the seller or buyer.
However, customers do not receive the same level of service and protection as clients. They do not have access to confidential information and are not represented by a professional who is required to act in their best interests. This can put them at a disadvantage in negotiations and can make it more difficult for them to find the right property.
Conclusion
Understanding the difference between a client and a customer in the real estate market is essential when navigating this complex industry. Clients receive the highest level of service and protection from their real estate professional and are represented by a professional who is required to act in their best interests. Customers, on the other hand, do not receive the same level of service and protection but have more control over the buying or selling process. It is essential to consider these factors when deciding whether to become a client or a customer in the real estate market.