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Real Estate Agents - Brokers
Find information on real estate agents and brokers.
Real estate agents and brokers
can be extremely helpful while buying or selling real estate. Real estate
agents and brokers provide many useful services and work with you in many
ways. In some real estate transactions, the agents work for the seller. In
others, the seller and buyer may each have agents. And sometimes the same
agents work for both the buyer and the seller. It is important for you to
know whether an agent is working for you as your agent or simply working
with you while acting as an agent of the other party.
You have several choices as to how you want a real estate firm and its
agents to work with you. For example, you may want them to represent only
you as a
buyer's agent. You may agree to let them
represent only the seller as a
seller's agent or subagent. Or you may be willing for them to
represent both you and the seller at the same time as a
dual agent.
Some agents will offer you a choice of these services. Others may not.
SELLERS Agent - Broker
If you are selling real estate, you may want to "list" your property for
sale with a real estate firm. If so, you will sign a "listing agreement"
authorizing the firm and its agents to represent you in your dealings with
buyers as your seller's agent. You may also be asked to allow agents from
other firms to help find a buyer for your property. Make sure to thoroughly
read and understand the listing agreement before you sign it.
Once you have signed the listing agreement, the firm and its agents may not
give any confidential information about you to prospective buyers or their
agents without your permission so long as they represent you. But until you
sign the listing agreement, you should avoid telling the listing agent
anything you would not want a buyer to know.
Services and Compensation:
To help you sell your property, the listing real estate broker and its
agents will offer to perform a number of tasks for you.
Such as:
• helping you price your property
• advertising and marketing your property
• giving you all required property disclosure forms for you to complete
• negotiating for you the best possible price and terms
• reviewing all written offers with you and
• otherwise promoting your interests.
For representing you and helping you sell your property, you will pay the
real- estate broker a sales commission or fee. The listing agreement must
state the amount or method for determining the commission or fee and whether
you will allow the firm to share its commission with agents representing the
buyer.
Seller's Agent Working With a Buyer
If the real estate agent or firm that you contact does not offer buyer
agency or you do not want them to act as your buyer agent, you can still
work with the firm and its agents. However, they will be acting as the
seller's agent (or "subagent"). The agent can still help you find and
purchase property and provide many of the same services as a buyer's agent.
The agent must be fair with you and provide you with any "material facts",
like a faulty foundation, about property.
But remember, the real estate broker or agent represents the seller—not you—
and therefore must try to obtain for the seller the best possible price and
terms for the seller's property. Furthermore, a seller's agent is required
to give the seller any information about you (even personal, financial or
confidential information) that would help the seller in the sale of his or
her property. Agents must tell you in writing if they are sellers' agents
before you say anything that can help the seller. But until you are sure
that an agent is not a seller's agent, you should avoid saying anything you
do not want a seller to know.
BUYERS Agent - Broker
A buyer’s agent or broker can help the home buying process go as smoothly as
possible. The agent’s or broker’s main concern is to locate a home that
appeals to the buyer. Once that is accomplished the agent or broker can help
with many other aspects of the home buying experience. A buyer’s agent or
broker is more than just a salesperson. They act on your behalf, providing
you with advice and guidance. This is their job, helping you purchase your
home.
Services and Compensation:
Whether you have a written or unwritten agreement, a buyer's agent will
perform a number of tasks for you.
Such as:
• find a suitable property
• arrange financing
• help negotiate the price
• learn more about the property and
• other-wise promote your best interests.
Once you have agreed, either orally or in writing, for the firm and its
agents to be your buyer's agent, they may not give any confidential
information about you to sellers or their agents without your permission so
long as they represent you. But until you make this agreement with your
buyer's agent, you should avoid telling the agent anything you would not
want a seller to know.
If you have a written agency agreement, the agent can also help you prepare
and submit a written offer to the seller.
A buyer's agent can be compensated in different ways. For example, you can
pay the agent out of your own pocket. Or the agent may seek compensation
from the seller or listing agent first, but require you to pay if the
listing agent refuses. Whatever the case, be sure your compensation
arrangement with your buyer's agent is spelled out in a buyer agency
agreement before you make an offer to purchase property and that you
carefully read and understand the compensation provision.
Dual
Agent
You may even allow the listing
firm and its agents to represent you and a buyer at the same time. This is
most likely to happen if an agent with your listing firm is working as a
buyer's agent with someone who wants to purchase your property. If this
occurs and you have not already agreed to a dual agency relationship in your
listing agreement, your listing agent will ask you to sign a separate
agreement or document permitting the agent to act as agent for both you and
the buyer.
It can be difficult for a dual agent to support the interests of both the
buyer and the seller. However, a dual agent must treat buyers and sellers
fairly and equally. Although the dual agent owes them the same duties,
buyers and sellers can prohibit dual agents from divulging certain
confidential information about them to the other party.
Some firms offer a form of dual agency called a "designated agency" where
one agent in the firm represents the seller and another agent represents the
buyer. This option may allow each "designated agent" to more fully represent
each party.
If you choose the "dual agency" option, remember that since a dual agent's
loyalty is divided between parties with competing interests, it is
especially important that you have a clear understanding of your
relationship is with the dual agent and what the agent will be doing for you
in the transaction.
Unwritten Agreements
To make sure that you and the
real estate firm have a clear understanding of what your relationship will
be and what the firm will do for you, you may want to have a written
agreement. However, some firms may be willing to represent and assist you
for a time as a buyer's agent without a written agreement. But if you decide
to make an offer to purchase a particular property, the agent must obtain a
written agency agreement. If you do not sign it, the agent can no longer
represent and assist you and is no longer required to keep information about
you confidential. Also, if you later purchase a property through another
agent or with another firm, the agent who first showed you the property may
seek compensation from the other firm.
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