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How Much Does My Real Estate Agent
Need To Know?
by: Christine Hancock
Real estate agents would say that the more you tell them, the better they
can negotiate on your behalf. However, the degree of trust you have with an
agent may depend upon their legal obligation. Agents working for buyers have
three possible choices: They can represent the buyer exclusively, called single
agency, or represent the seller exclusively, called sub-agency, or represent
both the buyer and seller in a dual-agency situation.
Some states require agents to disclose all possible agency relationships
before they enter into a residential real estate transaction. Here is a summary
of the three basic types:
1. In a traditional relationship, real estate agents and brokers have a fiduciary
relationship to the seller. Be aware that the seller pays the commission of
both brokers, not just the one who lists and shows the property, but also
to the sub-broker, who brings the ready, willing and able buyer to the table.
It most cases you will have 2 broker’s splitting the commission.
* Dual agency exists if two agents working for the same broker represent
the buyer and seller in a transaction. A potential conflict of interest is
created if the listing agent has advance knowledge of another buyer's offer.
Therefore, the law states that a dual agent shall not disclose to the buyer
that the seller will accept less than the list price, or disclose to the seller
that the buyer will pay more than the offer price, without express written
permission. Many times it makes sense to “assign” someone in your
office one side of the transaction, thus assures there is no conflict of interest.
* A buyer also can hire his or her own agent who will represent the buyer's
interests exclusively. Sometimes a buyer's agent must be paid out of the buyer's
own pocket but the buyer can trust them with financial information, knowing
it will not be transmitted to the other broker and ultimately to the seller.
More often the seller pays both the selling broker and the buyer’s broker.
About The Author
Christine Hancock began her real estate career proving herself a top producer
on a new high rise development. This experience gave her valuable knowledge
of construction as well as the buying process and resulted in 4-million dollars
in sales during her first year.
www.getanewhome.net
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