A first time Buyer can avoid aggravation when making
an offer to purchase real estate by having a solid knowledge of real
estate terminology and realistic expectations of the purchasing process.
Agency ~ Who Does The Realtor Really Work For?
Realtors, also called agents, work on commission; they work for the
money. While there are variations in different states, usually
there are 3 common types of Agency.
Seller Agency: You see a property advertised and call the
listing agent to see the house. The realtor is helpful and friendly. You
think you’re getting all the information you need to make an informed
decision about purchasing the property. What isn’t commonly known is that
the realtor represents the person selling the property. The
realtor’s loyalty will always be to the Seller. You are standing in the
rain without an umbrella.
Dual Agency: You see the perfect property advertised and call
the listing agent or another agent working for the same company.
Some at the company slides an innocent looking piece of paper under
your nose and candidly explains ‘dual agency’ to you. In plain English
that paper means that the real estate company is representing both the
buyer (you) and the Seller. Confidential information, which might be to
your benefit, will not be revealed to you unless the Sellers give their
permission. You are still standing in the rain and your umbrella has
holes in it.
Buyer Agency: You see the perfect property advertised. You do
the smart thing and research a different real estate company to
find the best realtor to represent your interests. You call your
chosen realtor and make an appointment to interview the realtor. Only after
you are confident that this realtor will represent your best interests
should you sign on the dotted line. The first time you put your
signature on a piece of paper it should be an “Exclusive Buyer Agency”
agreement. It should state that the realtor is working exclusively for you.
Remember realtors work on commission. Unless you buy a property, the
realtor does not get a check. You are standing in sunshine and you’ve
got a BIG umbrella just in case it rains.