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