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Questions to ask yourself before hiring an agent
- Does the agent work full-time?
- How long has he/she been a Real Estate Agent?
- Is he/she a member of an MLS (Multi Listing Service) Member?
- Do they know the area that your home is located?
- Can he/she give you references consisting of recent clients who used his/her services?
- How does the agent arrive at a suggested listing price?
- Are there different marketing plans for different homes?
- How does the agent plan to keep you informed about the progress of the sale of your home?
Who Represents Whom?
One of the most common misconceptions is that when working with a Real Estate Agent, he or she will "automatically" represent you as a buyer. Unless this is specifically disclosed in writing, the Agent will most likely be representing the seller.
In real estate history, tradition has been that a Real Estate Agent's primary loyalty was to the seller of the property. This relationship occurred regardless of whether the Agent was the listing agent or working with a buyer. This caused confusion among homebuyers. They assumed that the Agent who had been showing them houses was representing them. Really, the Agent was representing the owners of the houses that were shown, and was likely to reveal any information that he or she knew about the buyers.
Buyer's Agency, which is almost commonly available now, changed that relationship. The buyer now has a choice in who they are represented by. The Agent with whom they are working can continue to represent the seller in the process, or the Agent could represent them as buyers. The buyer is now able to compete on a more level playing field.
Although there are variations among states, a basic summary of the types of Agency, and who the Agent represents, is listed below.
Buyer Agency: When an Agent represents the buyer, that Agent "rejects" the implicit seller agency is devoted to the buyer.
Dual Agency: This occurs when 2 Agents--or the same Agent--working for the same Broker each represent a buyer and a seller in a transaction. This situation must be disclosed to both the buyer and the seller. Privileged information (i.e. the price that a buyer will pay or a seller will sell at) cannot be disclosed to the other party without the express permission of that party.
As with most decisions, it is helpful to make comparisons between the advantages and the disadvantages. When weighing the potentially expensive prospect of selling property, this comparison can be essential. While an effective agent can alleviate the bulk of the work in buying or selling a home, it will come at a cost--a commission. Selling the property on your own eliminates the commission, but requires that you become knowledgeable in the things that are normally handled by the Agent.
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