Are you buying a home or maybe thinking of selling your home? Should you use a Realtor or do it on your own? Here are a few things to know about your representation.
Why Use a Realtor:
- A Realtor will have the negotiating skills that are needed in today’s competitive market
- A Realtor has access to the most current sales data and the available homes on the market
- A Realtor is held to a strict code of ethics
The Different Agency Relationships:
- Seller Agent: A seller agent and their company works exclusively for the seller and must act in the seller’s best interest, including making a continuous and good faith effort to find a buyer except while the property is subject to an existing agreement. A seller’s agent must keep all the seller’s information confidential but is still required to reveal known material defects about the property like foundation damage, ect
- Buyer Agent: A buyer agent and their company work exclusively for the buyer even if paid by the seller. The buyer agent must act in the buyer’s best interest, including making a continuous and good faith effort to find a property for the buyer except while the buyer is subject to an existing contract and must keep all information confidential, other than known material defects about the property.
- Dual Agent: A dual agent works for both the seller and the buyer. A dual agent may not take any action that is adverse or detrimental to either party but must disclose known material defects about the property. A Realtor must have written consent of both parties before acting as a dual agent.
- Designated Agent: The broker of a real estate company can designate a certain Realtor to act exclusively as the seller agent and another real estate agent with the company to act exclusively as the buyer agent in the transaction. Because the broker supervises both real estate agents, the broker automatically serves as a dual agent. Each of the designated licensees are required to follow the above roles as a seller agent or buyer agent.
As you can see, each agency relationship has a very particular role and it is important to know how you are being represented in a transaction. A Realtor should provide a consumer notice to each buyer or seller at the time of your initial contact with the Realtor so that the agency relationship can be determined and explained. If you have questions regarding agency relationships and would like to discuss this more, please reach out to myself or my husband. In our business, we find it to be important that you receive all of the information you need to understand the entire transaction process so that you can be confident in your transaction.