When
selling a home sellers often make emotional or impulsive decisions
that cost them money and time. Choosing the right Realtor to
market a property and negotiate the sale is the most important
step in the process.
If you think buying or selling a home is a simple matter of
cruising open houses or posting a "for sale" sign
on the front lawn, consider the following: Do you have access
to every home for sale in the neighborhoods you’re interested
in? Do you have the time, energy and resources to research the
housing market? Can you market a property effectively? Can you
read real estate contracts and, if selling a home, do you understand
your legal obligations toward buyers?
Buying and selling real estate can be complicated, not to mention
the biggest financial decision most people ever make. With so
much at stake, working with a professional real estate agent
can help locate the right property at the right price, or negotiate
the best deal possible on your home sweet home.
When it comes to choosing a real estate agent, consumers who
do their homework can save thousands of dollars and experience
a smooth financial and physical transition. Here are a few helpful
hints for choosing a real estate agent that is right for you:
• Ask friends and family members for referrals. Most real
estate agents stay in business because satisfied clients refer
them to friends, family, neighbors and coworkers. Ask the people
around you who they have used and ask them to describe their
experiences with this real estate agent. Successful agents make
customer satisfaction their number one priority and put their
customers' needs before their own.
• Do they know the neighborhood? Is the agent familiar
with the housing market in the areas you’re looking to
buy or sell? Agents with a history of transactions in neighborhoods
that interest you will know what’s available and in what
price range. If you’re listing your property, a good agent
will know the market well enough to set an optimum asking price
attractive to both seller and buyer.
• Keep in mind when choosing a real estate agent that he
or she has access to a powerful tool -- the Multiple Listing
Service (M.L.S.) that inventories all available properties by
region. A skilled agent can use the M.L.S., plus their own experience,
to locate homes in neighborhoods matching your property wish
list -- such as a quality school system, convenient shopping
or close highway access.
• What level of customer care will you receive? A real
estate agent is your business partner in a huge financial undertaking,
so you’ll want to choose a real estate agent that is always
ready, willing and available. Be sure that communication stays
open and phone calls are returned.
• Know what you’re signing. Take the time to read
through all of the fine print if asked to sign a working contract
with an agent.
Who’s
Working For You?
It is important that you understand who the REALTOR® is
working for. For example, both the seller and the buyer may
have their own agent which means they each have a REALTOR®
who is representing them. Or, some buyers choose to contact
the seller’s agent directly. Under this arrangement the
REALTOR® is representing the seller, and must do what
is best for the seller, but may provide many valuable customer
services to the buyer.
A REALTOR® working with a buyer may even be a ‘sub-agent’
of the seller. Under sub-agency, both the listing brokerage
and the cooperating brokerage must do what is best for the
seller even though the sub-agent may provide many valuable
customer services to the buyer.
If the brokerage represents both the seller and the buyer,
this is dual representation.
Seller's Agent
When a real estate brokerage represents a seller, it must
do what is best for the seller of the property.
If you are selling your home you may want to "list"
your property for sale with a real estate firm. A written
contract, called a "listing agreement", creates
an agency relationship between the seller and the brokerage
and establishes seller representation. It also explains services
the brokerage will provide, establishes a fee arrangement
for the REALTOR’s® services and specifies what obligations
a seller may have.
A seller’s agent must tell the seller anything known
about a buyer. For instance, if a seller’s agent knows
a buyer is willing to offer more for a property, that information
must be shared with the seller.
Confidences a seller shares with a seller’s agent must
be kept confidential from potential buyers and others.
Although confidential information about the seller cannot
be discussed, a buyer working with a seller’s agent can
expect fair and honest service from the seller’s agent
and disclosure of pertinent information about the property.
Buyer’s Agent
A real estate brokerage representing a buyer must do what
is best for the buyer.
A written contract, called a “buyer representation agreement”
creates an agency relationship between the buyer and the brokerage,
and establishes buyer representation. It also explains services
the brokerage will provide, establishes a fee arrangement
for the REALTOR’s® services and specifies what obligations
a buyer may have.
Typically, buyers will be obligated to work exclusively with
that brokerage for a period of time.
Confidences a buyer shares with the buyer’s agent must
be kept confidential.
Although confidential information about the buyer cannot be
discussed, a seller working with a buyer’s agent can
expect fair and honest service from the seller’s agent
and disclosure of pertinent information about the property.
Dual Representation
Occasionally a real estate brokerage will represent both the
buyer and the seller. The buyer and seller must consent to
this arrangement in writing. Under this dual representation
arrangement, the brokerage must do what is best for both the
buyer and the seller.
Since the brokerage’s loyalty is divided between the
buyer and the seller who have conflicting interests, it is
absolutely essential that a dual representation relationship
be properly documented. Representation agreements specifically
describe the rights and duties of everyone involved and any
limitations to those rights and duties.
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