What distinguishes a buyer's agent from a seller's agent?

A buyer's agent is specifically tasked with representing the interests of the buyer in a real estate transaction, while a seller's agent is responsible for advocating for the seller's interests. This distinction is fundamental to their roles in real estate transactions, as it defines their responsibilities and obligations to their clients. A buyer's agent will seek to negotiate favorable terms for the buyer, while a seller's agent will aim to achieve the best outcome for the seller.

The correct response highlights that these agents have specific roles that are not interchangeable and that their representation is based on who they are working for during the transaction—either the buyer or the seller. This professional specialization ensures that clients receive dedicated support tailored to their needs and objectives in the real estate market.

The other options do not correctly characterize the fundamental distinction between a buyer's agent and a seller's agent. Negotiating different fee structures may occur but is not a defining feature of their roles; they can operate in various market conditions, not limited to buyer's markets; and while they may have knowledge of property values, performing appraisals is not typically within the scope of their duties. Therefore, understanding the specific representation roles of buyer's and seller's agents is crucial in recognizing how real estate transactions are structured and governed.