Who does a realty firm represent when they enter into an agreement with a home builder?

A realty firm represents the home builder when they enter into an agreement with them. This relationship is typically defined by a contract that establishes the terms of representation, which may include marketing the builder's properties, navigating sales processes, or negotiating deals on behalf of the builder. The realty firm acts as an agent for the builder to facilitate transactions and often focuses on promoting the builder's interests in the market.

In the context of this agreement, the realty firm's responsibilities may include conducting market research, advertising properties, hosting open houses, and managing communications with potential buyers—all with the objective of driving sales for the home builder. This relationship is foundational in real estate transactions, where the firm’s loyalty and duty of care are typically owed to the home builder, ensuring that their needs and objectives are prioritized throughout the sales process.

Understanding this principle is vital for anyone involved in real estate, as it sets the stage for the roles and responsibilities in various types of real estate transactions and interactions.