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Houses Under Fifty
Thousand |
Choosing A Real Estate Agent
When I was a real estate agent, I made
it a point to tell buyers that I represented the seller in a
transaction. Not all agents do this, and buyers often don't understand
what the difference is. Let me give a clear example. If you mention
that you are willing to pay $111,000 for a home within hearing
of the agent (if he is a seller's agent) , then that nice real
estate agent, who has taken so much time to show you around and
help you out, is obligated to tell the seller what you said.
That makes it hard to get your $102,000 offer accepted, doesn't
it?
So should you try to work with only a
buyer's agent when looking at real estate? Or perhaps with a
real estate agent that represents both you and the seller
(dual agency)? Read the article below for a better idea of how
to sort out these issues of representation.
Who's On Your Side When You
Buy A Home?
By Dan Ross
Fewer than 10 percent of Massachusetts'
real estate agents fully comply with agency disclosure law, according
to a study by the state's real estate regulatory agency, the
Board of Registration of Real Estate.
Likewise, John Pinto, a real estate broker
and expert witness in San Jose, CA says nearly all real estate
agents violate California's disclosure laws by not fully disclosing
to consumers who they represent -- the buyer, the seller or both.
And the Washington,D.C.-based Consumer
Federation of America says because many consumers aren't even
aware they have a right to know by whom and how they are represented,
they are under represented to the tune of $10 billion a year
in higher home costs.
"This issue is a big one and that's
making sure consumers have a right to know up front they can
get somebody on their side in the home buying transaction,"
said Leo Berard charter president of the National Association
of Exclusive Buyers Agents (NAEBA).
NAEBA is an independent alliance of exclusive
buyer's agents founded in 1995 to educate the public about exclusive
buyer agency and related consumer rights.
During its annual convention, the association
today challenged the traditional real estate industry to live
up to its responsibilities to consumers and more adequately disclose
agency relationships in real estate transactions.
Most agents do little more than tack
an agency disclosure form onto the pile of paper work consumers
sift through during the home buying transaction, according to
Pinto.
Pinto and others suggest a face-to-face
disclosure, in addition to what's required in writing.
"The emphasis of the message should
not be the lip service. You are supposed to go over agency disclosure
as soon as practical, like the first time you sit down with a
client," says Pinto.
What's the difference?
Generally, consumers who engage the services
of a listing broker to sell property,become the broker's client.
Sometimes called the "listing agent" or the "seller's
agent," that broker represents the seller and owes him or
her certain fiduciary responsibilities, including undivided loyalty,
confidentiality and accountability. In negotiating the best price,
the seller's agent must put the client's interests first.
Likewise a buyer's agent works exclusively
for the buyer. When it comes to negotiating prices and terms,
the buyer's interests come first. "If you have a choice
and there is an exclusive buyer's agent available, that's the
way to go," said Berard, who along with his wife owns Buyers
Brokers of Cape Cod, MA.
In many cases, however, a buyer and a
seller negotiate about a property held by the same broker in
a relationship often called "dual agency". This scenario
includes the buyer and the seller working with different agents,
but the listing is held by the same broker under whom both agents
work.
In virtually every state, the dual agency
relationship must have the consent of both the buyer and seller
and it must be disclosed in writing.
The broker theoretically owes both the
seller and buyer a duty to deal with them fairly and honestly.
The dual agency has it's insider-track pluses, but critics say
the role comes with a built-in conflict of interest because it's
logistically impossible to represent both a buyer and seller
equally.
Stiffer disclosures sought
Ten years ago, studies showed most consumers
believed the agent who drove them around house shopping was working
for them. That prompted today's disclosure laws, but Berard and
others say the laws don't go far enough.
"NAEBA intends to enlist the support
of organized consumer groups throughout the United States,"
said Merrill Ottwein, the association's outgoing president.
NAEBA also said it plans to call upon
state legislatures and regulatory agencies to strengthen laws
requiring more detailed disclosure of agency relationships.
"But I don't want to put it all
on the real estate industry. Some consumers have their own problems.
There is a reluctance among consumers
to any type of commitment and they prefer to be free agents.
Not only should the agent be committed to representing the buyer,
the buyer needs to be committed to the agent. It's like a lot
of people who want all the benefits of a marriage without the
commitment," said Pinto.
Since 1989 Dan the roommate man has helped
1000's of people find rooms, apartments or roommates. Need help
in finding a room or roommate? Contact him at 800-487-8050 or
http://www.roommateexpress.com
Article Source: http://EzineArticles.com/
Houses Under
Fifty Thousand | Choosing A Real Estate Agent |