Whether you are selling or buying a
home, selecting a real estate sales professional is one of the most
important decisions you will make during the process.
There are some very important things you should consider when choosing
a real estate professional. One of the first considerations is who the
agent represents during the process.
Real Estate Agencies
It is important that you know the differences between a
professional who represents a seller (the "traditional" role
of a sales associate), a professional who represents a buyer and one
who represents both. In most areas, real estate professionals are now
legally obliged to disclose, in writing, information on the various
types of real estate agency relationships that exist. You should
assume the real estate professional is working for the seller unless
otherwise stated.
- Seller's Agent -
A real estate professional becomes a Seller's Agent by entering
into a listing agreement to represent the seller's interests.
Seller representation may also be created when a real estate
professional shows a property on the Multiple Listing Service and
"buyer agency" has not been created. The Seller's Agent
can provide information to assist the buyer, but they must place
the interests of the seller first. A buyer should not disclose
anything to the Seller's Agent they do not want the seller to
know.
- Buyer's Agent -
A real estate professional becomes the Buyer's Agent by entering
into an agreement to represent the buyer. A Buyer's Agent can
assist the seller, but does not represent the seller. The Buyer's
Agent must place the interests of the buyer first. A seller should
not tell the Buyer's Agent anything they would not want the buyer
to know, because the Buyer's Agent must disclose any pertinent
information to the buyer.
- Dual Agent -
Dual agency occurs when a real estate professional represents both
the seller and the buyer. It can also occur when the Listing or
Seller's Agent works for the same real estate firm as the Buyer's
Agent. In most states, the buyer, the seller and the Agent must
agree in writing for the creation of dual agency. The Dual Agent
is required to treat the buyer and seller honestly and
impartially. In dual agency, the professional's duties are more
limited and there is potential for conflict of interest. You may
hear the terms "transaction broker" and
"intermediary" in association with dual agency.
Interviewing Real Estate Sales
Professionals
You may want to interview several sales professionals before selecting
one to represent you.
If you are selling your home, the real estate sales professionals you
interview should cover the following items during the interview:
- Pricing your
home
- Increasing your home's
value
- Marketing
strengths
- Negotiating the Sale -The seller's
agent should review every offer with you and help you evaluate all
aspects of each offer and its financial
implications.
- An overview of the local standard
Contract For Sale along with typical addenda and give you a copy
for review
If you are buying a home, the real
estate professionals you interview should cover the
following:
- Agency
relationships
- Many real estate professionals who
primarily represent buyers have been specially trained to do so
and have received the Accredited Buyer Representative (ABR)
designation
- How much home you can
afford
- The difference between being
"pre-qualified" for a mortgage and being
"pre-approved" for a
mortgage
- Key features you "must
have" in your new home vs. those you would like to
have
- How to evaluate and compare the
homes you
see
- An overview of the local standard
Contract For Sale along with typical addenda and give you a copy
for review
- The types of inspections you will want to have done on the
property you select
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