Understaning Agency Relationships

Understaning Agency Relationships

   Agency Relationships & Responsibilities

Buying or selling a home can be one of the most stressful events one can experience. There’s a lot at stake personally, emotionally and financially. Many factors are involved in buying or selling a home that are beyond your control so to maximize your chance of success, hire the right professionals to accomplish your goal. A good Real Estate Agent will work with you through the buying or selling process and perhaps help you keep your sanity. Yes you can do this on your own but do you want to and are you able to?

It makes sense to utilize an Agent to help you buy or sell your home but you should understand what your Agent should or shouldn’t do and who they actually represent. A common misconception of buyers is that when working with a Real Estate Agent, that Agent will “automatically” represent them. Unless this is specifically disclosed in writing, the Agent is most likely representing the seller. This situation caused many home buyers to be confused so states created “Agency” rules to clarify this.

SELLER’S AGENT: Also known as the Listing Agent, a Seller’s Agent is hired by and represents the seller. The fiduciary duty of loyalty is to the seller. The seller is the licensee’s client and the licensee has the duty to represent the seller’s best interest in the real estate transaction. This Agent negotiates the best possible price and terms for the seller.

BUYER’S AGENT: When an Agent represents the buyer, that Agent “rejects” the implicit Seller Agency and thus owes loyalty to only the buyer. The fiduciary duty of loyalty is to the buyer. The buyer is the licensee’s client and the licensee has the duty to represent the buyer’s best interest in the real estate transaction. This Agent has no agent responsibility to the seller. This Agent negotiates the best price and terms for the buyer.

DISCLOSED DUAL AGENT: A disclosed dual agent is a licensee acting for both the seller and the buyer as clients in the same transaction with the knowledge and consent of all parties. The fiduciary duty of loyalty to the client is limited. This focuses the relationships on confidentially and the negotiation process. Privileged information cannot be disclosed to the other party without the express permission of that party. A Dual Agent has responsibilities to both seller and buyer and must act in the best interest of both.

DESIGNATED AGENCY: A Designated Agent is a licensee who represents one party of a real estate transaction and who owes that party client level duties, whether or not the other party to the same transaction is represented by another individual licensee associated with the same brokerage firm.

FACILITATOR or NON AGENT: Also called “Another Relationship” in NH and a “Transaction Broker” in Maine. A Facilitator is an individual licensee who assists one or more parties, as a customer, during all or a portion of a real estate transaction without being an agent or advocate for the interests of any party to such transaction. If a consumer does not want an Agent to act on their behalf, yet wishes to utilize them to buy or sell property that is not listed with that Agency, their relationship is a “Non Agency” and must also be in writing. As Non-Agents, the Agency and Agent do not have a fiduciary relationship with these buyers or sellers. This Facilitator or Non-Agent can assist either buyer or seller in ministerial administrative acts and will disclose material facts. Ministerial acts include showing property and preparing and/or presenting offers to buyers or sellers as well as providing information or assistance not related to real estate brokerage services.

What We Do As Your Sellers Agent

·        Determine market value of your home

·        Establish a pricing strategy

·        Recommend changes or improvements that will help sell your home

·        Explain the showing process and provide feedback from showings

·        Provide a listing sheet & property disclosure form to buyers & other brokers

·        Submit the home to our Multiple Listing Service for buyers & Agents to see

·        Put a for sale sign on the property

·        Set up “Talking House” so potential buyers can hear your homes appeal

·        Develop a marketing plan to give your property the most exposure

·        Help you Stage® your home and generate curb appeal or find you a Stager

·        Arrange a tour of the property for other Agents

·        Have an Open House for Agents

·        Promote property on the internet; Realtor.com, Google Base, NYTimes.com, etc.

·        Communicate regularly with you about buyers reactions and market conditions

·        Qualify buyers

·        Show the home effectively

·        Present and explain written offers and alternatives

·        Negotiate the transaction

·        Finalize the agreement

·        Help you find your next home

·        Follow through with buyers financing and other commitments

·        Coordinate the closing

What We Do as Your Buyers Agent

·        Determine your priorities and needs

·        Evaluate financing requirements and options

·        Help you find a mortgage company that best suits your needs

·        Review the current market and how it effects you

·        Interpret Market Data Information

·        Find available homes by searching MLS, FSBO’s, expireds and foreclosures

·        Select, screen and scrutinize properties for you

·        Compile community information for you

·        Offer market expertise and area knowledge

·        Coordinate and schedule appointments to view properties

·        Evaluate each property with you

·        Point out issues to be aware of in the house

·        Negotiate for you

·        Determine market value and prepare CMA’s on properties you want

·        Provide comparable sales

·        Advise on formulating an effective offer

·        Prepare and present offer and negotiate with seller

·        Help you choose inspection companies

·        Assist in arranging inspections

·        Attend home inspections with buyer

·        Help secure financing

·        Help you find a mover

·        Help prepare for closing

·        Attend Closing

What We Do As A Facilitator/Non-Agent

·        Determine what you are looking for

·        Help estimate a price range

·        Provide list of mortgage companies to you for you to choose

·        Provide detailed information on homes currently on the market, including MLS

·        Schedule appointments to see properties

·        Compile community information for you

·        Assist in submitting an offer

·        Assist with loan application

·        Provide names of possible inspectors, attorneys and title companies

·        Attend inspections

·        Attend closing

Bob & Karen Goldman 603-781-2000

This Information is offered by:

Although we believe that this information is accurate as it is compiled from professional sources, please verify this information on your own before relying on it as your only source of knowledge to base any decisions on.