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