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------------------------------------------------------------------------ Real Estate Guides Real Estate Agent - Licensed Professional. Working with one can save you time, money
and frustration. A Good Agent Will: Know the inventory. Have easy access to the homes. Are trained to write contracts. Can estimate closing costs and payments. Coordinate inspections, paperwork and
escrow. A good real estate agent will take the time
and have the patience to guide you through the basic steps of buying a home.
Choose an agent you feel comfortable with, someone who will represent your
best interests. The more experienced they are, the more likely they will know
how to quickly deal with problem situations as they arise. Ask for referrals
or letters of recommendations. Many people are put off by agents because
they feel they are too pushy or aggressive. Working with an agent having
these characteristics can be an advantage in that things get done in a timely manner. Feel
they are of good character though. If you feel your real estate agent is
incompetent or not working in your best interest, interview another agent. If
you are comfortable with your agent, be loyal to him/her. Don't use them to
find a house and then have a relative "in the business" write up
the contract. This is the time you need to have someone who knows how to
effectively negotiate without emotional constraints. Inventory Knowledge A good agent knows the housing market. Agents spend a lot of time previewing
properties. Daily they review new listings on the Multiple Listing Service
(MLS) providing information about size, room count, amenities, condition,
schools and price. They know houses that are listed where the
owner requests no yard sign. Many agents specialize in a specific
neighborhood and personally know many of the people who live there. Easy Access Most homes listed for sale have lock boxes
which provide agents access when the owners are not home. Should you want to
preview specific homes, the agent notifies the owners and shows the homes to
you at your convenience. Good Source of Contacts Real estate agents are always coming in
contact with loan agents, insurance agents, inspectors, contractors, and
others who are involved with real estate. Over the years they acquire many
names and can provide you with those who they feel are reliable. Salesperson - Broker Relationship A salesperson is licensed to perform real
estate activities on behalf of a licensed real estate broker/company. The
salesperson is responsible to the broker/company under whom he or she is
licensed. All of a salesperson's activities must be performed in the name of
the real estate company. The salesperson has no authority to receive
commission directly from a client. The broker/company is the only one licensed
to act as the client's legal agent. An associate broker is a broker who chooses
to work as a sales person under the name and supervision of another
broker/owner. The associate broker must have all the
qualifications for a brokers license and pass the broker's exam, but
transacts business exactly as a salesperson would. Buyer - Agent Relationship When an agent and client work together,
they enter into a fiduciary relationship which is governed by the law of
agency. This fiduciary relationship is one of trust and confidentiality
between the parties. Under this relationship the agent and his/her real
estate firm has certain duties they must perform. They are: accounting, disclosure, care,
confidentiality, loyalty, and obedience. Even though the agent has this
fiduciary relationship, they may not be working in buyer's best interest. You
may think the agent is truly working for you, but that depends on the type of
agent they are. Types of Agents Exclusive Buyers Agent Sellers Agent / Listing Agent Dual Agent Exclusive Buyer's Agent This type of agent truly works for and has
loyalty to only the buyer. This agent is obligated to convey to the
buyer/client any information about the seller's willingness to accept a lower
price or what the property is worth. The other types of agents are not
obligated to work in the buyer's best interest. Using an Exclusive Buyers
Agent is the best way to buy a house. There is a growing trend for the
Exclusive Buyers Agent. Typically the exclusive buyer's agent will
get paid through the seller's commission. When working with an exclusive
buyer's agent, the buyer usually signs a contract to work only with that
agent. This works to both parties advantages. This can work to the buyer's
advantage through a lower sales price and better service. An agent who knows
you are committed only to them is going to give you their best service from
the beginning. A buyer entering into an exclusive buyer
agreement might want to start with a contract period of one week. After such
a time, the buyer should be able to decide if the agent is living up to their
standards and in comfortable to work with. They then have the option of
extending the contract or working with another agent. Sellers Agent / Listing Agent The sellers agent is a listing agent. Their
loyalty is to the seller. All confidential information a buyer discloses to a
sellers agent is passed on to the seller. They try to get the highest price
possible for the seller, which is not in the best interest of the buyer. Dual Agent A dual agency is created when the buyer's
agent and seller's agent work for the same real estate company. Real estate
companies prefer their agents to sell one of the companies listings. This
creates a dual agency as both agents work under the same broker. A dual agent
is better than a seller's agent, but not as good as an exclusive buyer's
agent when it comes to the buyer's best interest. The Commission Many first time buyers don't want to use an
agent because they wrongly assume they will have to pay them a commission.
Typically the commission is paid by the seller, therefore the buyer gets the
agent's services for free. The seller usually compensates the broker/company
not the salesperson with a commission for having successfully performed the
service for which the broker was employed. This broker will then compensate,
through escrow, the buyer's agent's broker for part of the commission. After
escrow has closed, the broker's of both the listing and selling agents will
split this fee with the agents involved. You Should Know A real estate agent is qualified to provide
valuable information and assistance, but is not an expert in every aspect of
real estate. They are not permitted to give legal
advice. You should carefully read all documents
that you are asked to sign. If you do not understand the effect of any
part of a document or if you desire legal or tax advice, consult an attorney or tax
advisor. Likewise a real estate agent does not hold
himself as an expert regarding the condition or boundaries of the property. Obtain the services of the appropriate
professionals. |
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Real Estate Guide |
