Not all real estate agents are alike! Before you "hit the
streets", it is critical that you understand the difference
as you consider your options.
EXCLUSIVE BUYER'S AGENT
An Exclusive Buyer's Agent is legally obligated to represent
the Buyer's interest and must do the following for the Buyer:
- Negotiate the lowest price & most favorable terms
- Offer reasons not to buy, point out property flaws
- Disclose all information about the Seller and the Seller's
property that may benefit the Buyer
- Perform Comparative Market Analysis and render opinions of
value.
more on buyer's agency
SELLER'S AGENT
Also known as "Listing Agent" or "Traditional
Agent." This agent has listed a home for sale and represents
the Seller. This agent is legally obligated to represent the Seller's
interest and must do the following for the Seller:
- Negotiate the highest possible price & most favorable
terms
- Keep any information that would benefit a Buyer's position
confidential
- Disclose to the Seller all information about a Buyer that
would benefit the Seller
Dual Agent or Limited Agent
This is an agent who practices what is known as "Disclosed
Dual Agency"…an agent who represents both the Buyer
and the Seller in the same real estate transaction. Sound controversial?
It is…but it is legal in many states with informed consent
of all parties.
No Agent
Buyers are not required to work with a real estate agent. You
may contact For Sale By Owners directly if you wish, with the
understanding that neither you nor the Seller are represented…you
are "on your own." For listed properties, you are obligated
to contact the company that has the home listed to obtain information
or to see the property. Under these circumstances, you will be
working with a "Seller's Agent" - (see "Seller's
Agent" above).
As stated above, I believe it is extremely important that you
understand the significant differences in practice among agents
and agencies, and what their company policies are. Only then can
you make an informed decision about selecting an agent with whom
to work. Please open the door "Agent Interview" to find
a list of questions that you should ask any real estate agent
you may consider hiring or working with.
Next >> More on Buyer's Agents
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Types
of Agency
