Real Estate Greenwood SC Buyers Do You Really Know The Rules
Of Engagement?
Buyers Do You know Who's Really On Your Team? Who's A double Agent
& Who's On The Other Team? You must know this before you decide to
purchase your first real estate property or your next real estate
property. Agents are required to present you with a brochure explaining
the types of relationships between real estate agents and their company
and buyers of real estate at the first opportunity. Getting this
information and understanding this information are two separate things.
It's much like the skit between Abbott and Costello Who's On First
Buyer Representation or "Who's Got Your Back"
Why so Much Attention to Buyer Agency?
Until the late 1980s, most real estate transactions were handled in the same way they had been for more than 70 years. The listing agent, acting as the agent of the seller, chose to extend an offer of cooperation to other licensees who had potential buyers for the property. The agent who brought a buyer to the transaction became a sub-agent of the listing broker, and, by accepting the offer of sub-agency, represented the seller and owed loyalty to that seller. Understandably, this legal theory was often not realized by most consumers. This was clearly revealed in a Federal Trade Commission survey of home buyers who had recently purchased a property using the services of agents who represented the seller. It revealed that more than 70 percent of those buyers surveyed thought the agent they worked with represented their interest. In fact, none represented the buyer.
Times and Rules Have Changed
Buyer agency has evolved during the last 20+ years once state licensing regulators instituted disclosure regulations requiring real estate agents to tell prospective buyers that the listing and selling agents both represented the interest of the seller in the transaction. Since that time, buyer agency has become a highly regulated and accepted method of conducting business.
When And How Does A Buyer Have Representation?
Buyers are not fully represented by any agent until they sign a Buyer Agency Contract to allow an agent and their company to represent their interests as either a dual agent (any agent of the company that has the property listed) this will allow the listing company and all agents of that company to represent both buyer and seller in a limited capacity. Or on agent represents the Buyer exclusively (when buying a property of another company's listing)
Can you repeat that?
Single Agency
Any agent of any company other than the listing company can represent a buyer and that buyer will receive full representation. With the following services provided.
Obedience refers to two obligations: To follow the lawful instructions of the client and to adhere to the promises the agent made in the representation agreement.
Loyalty refers to the obligation to put the interests of the client ahead of the agent and all others in the transaction.
Disclosure the agent’s responsibility to disclose all known facts and information about the property or the transaction that may affect the principals’ decisions. It goes beyond mandated property disclosures.
*Confidentiality requiring an agent to keep client information confidential, unless specifically instructed to do otherwise by the client. This duty is that this responsibility does not end with the termination of the agency relationship itself, unless overridden by state law, but rather extends indefinitely.
Accounting is the obligation of the agent to account for all funds or property received or disbursed on behalf of a client, as well as the maintenance of accurate records generated by the transaction.
Reasonable Care And Skill refers to the quality of service which must be provided to a client. This means the agent has an obligation to provide relevant and verified information.
*Advice agents may point out deficiencies in the property as well as defects in potential for resale
*Council a buyer clients receive the benefits of an agents expertise,experience, and knowledge
*Assistance In Negotiation buyers have an advocate to help them during negotiations. The agent uses their knowledge of prior sales and area statistics to help buyers with the offer to purchase.
a winning hand!
On The Other Hand
If you have not signed a Buyer Agency Contract ( Not the same as the Agency Disclosure Brochure) with a real estate agent you are a Customer and have only limited representation. Services above marked with an * are not provided to you (For instance.
there is no obligation for the real estate agent to negotiate the price or terms on your behalf, the agent cannot provide you with information about the sellers and or their motivation to sell.
Explanation Of The Limited Scope Of Services If You Choose To Remain A Customer
Disclosure ( The agent is required to inform you of any known defects in the property that the agent should reasonably know)
Present All Offers In A Timely Manner ( the agent is required to present your offer
as quickly as possible)
Acountability (the agent must account for money and turn over to that money or other property received on your behalf)
Fair And Honest ( the agent must be fair and honest and provide accurate information).
Now I know you may be thinking, this is way too much information! I understand, but it is vital for you to digest this. I deal every day with buyers, who now want to become sellers and may find out they paid too much for the property and now that it is time to sell, find out they can't sell it for what they need to because the market won't support the price, or now have a problem that might have been brought to light had they had buyer representation, and find that there is no one on their side. Here's more information on hiring a buyer's agent
information overload!!!!
Don't worry I have successfully represented buyers in the purchase of Greenwood Real Estate and they have happily provided me with excellent referrals. I would like to add you as a satisfied client. Contact me for help with any property on the market.
Learn How To House Hunt Like A Pro
Visit My Blog
All Greenwood SC Real EstateI write about a variety of different subjects some will inform you some will tickle you and some will make you say huh?