Donna Yates, Move 2 North Georgia.net: Working With Realtors in Blue Ridge, North Georgia Mountains - What All Buyers and Sellers Should Know

Working With Realtors in Blue Ridge, North Georgia Mountains - What All Buyers and Sellers Should Know

The job of a listing agent is to get the highest price possible, in the shortest amount possible, with favorable terms for the seller.

The job of a buyer's agent is to get the lowest price possible, with favorable terms to the buyer.

Simple right!?!  Well not so fast...

 

There are things you as a seller or a buyer should know:

Seller's Agent (Listing Agent)
If you want to market your property for sale with a brokerage firm, you will sign a listing agreement which authorizes the brokerage firm to represent you when dealing with buyers.  So you should avoid telling the agent anything you would not want disclosed to a buyer prior to signing a listing agreement.  The Seller's agent will provide many services for you which may include;

  • preparing a Comparative Market Analysis to help you price your property
  • advertising your property
  • providing to you all property disclosure forms for you to complete
  • negotiating on your behalf, the best possible price and terms
  • reviewing with you, all written offers
  • promoting your best interests

Duties to the Seller by the brokerage firm and its agents are:

  • to promote Your best interests
  • to follow Your lawful instructions
  • to disclose all material facts which could influence Your decisions
  • to be loyal to You
  • to use reasonable skill, care and diligence
  • to account for all monies that they handle for You
  • not to provide confidential information about you to potential buyers or their agents without your permission (once a listing agreement is signed)

                                                                            

Buyer's Agent (A benefit that costs you the buyer nothing)
When you the buyer contact an agent for assistance and the agent provides assistance to you, who do you think the agent is representing?  You may be surprised to know that the agent you contacted who is providing assistance to you is acting as a transactional broker and not Your buyer's agent.  The agent represents the seller!  That's right, the seller.  You the buyer; however,  may have several choices in which to choose how your brokerage firm and its agents will work with you.  Such as:

  • You may want them to represent only You as a buyer's agent
  • You may be willing to allow them to represent both you and the seller as a dual agent
  • You may agree to them representing only the seller (seller's agent or subagent)
  • You may agree to a designated agency where one agent within the firm represents the seller and another agent within the same firm represents the buyer
    Note:  Some agencies will offer you a choice of these services, others will not.  Be sure you understand what your relationship is with the firms and its agents, what the agent will be doing for you in a transaction and put the agreement in writing as soon as possible.

Duties to the buyer by the brokerage firm and its agents are:  

  • to promote Your best interests
  • to follow Your lawful instructions 
  • to disclose all material facts which could influence Your buying decisions
  • to be loyal to You
  • to use reasonable skill, care and diligence
  • to account for all monies that they handle for You
  • not to provide confidential information about you to the sellers or their agents without your permission (once a Buyer's Agency Agreement is signed)

So you should avoid telling the seller's agent anything you would not want disclosed to a seller prior to signing a Buyer's Agency Agreement.  Until you hire a brokerage firm and its agents as your Buyer's Agent by signing a Buyer's Agency Agreement, the firm and its agents work for the seller.

Remember, without a signed Buyer's Agency Agreement, the firm and its agents will be acting as the Seller's Agent and must try to obtain for the seller the best possible price, terms and provide the seller with any information about you (the buyer) even personal, financial or confidential that will help the seller.  Seller's agents are compensated by the seller.  Buyer's agents are compensated by the seller if the property being sold/purchased is in a multiple listing service.  If the property being purchased is a For Sale By Owner, the buyer may be responsible for compensating the Buyer's Agent in the event the For Sale By Owner refuses to pay commission.

 

Donna Yates, Realtor serving the North Georgia Mountains in Blue Ridge. Please see great mountain properties for sale
Move 2 North Georgia where there's no place like "a North Georgia Mountain" home!

 

Real Estate Clip Art

 

Donna Yates
Associate Broker, GRI
706-633-0644 Mobile
Serving North Georgia Mountains and Metro
Metro Brokers - Better Homes and Gardens Real Estate
706-515-7500 Office

MOVE 2 NORTH GEORGIA - HOMES FOR SALE

SEARCH GEORGIA HOMES FOR SALE

 

 

 

 

Comment balloon 13 commentsDonna Yates • August 26 2007 08:27PM

Comments

Donna,

   Your explanation should be immediately inserted into the Real Estate Fundamentals/Practice Text Books!  I recently completed my RE classes and if "agency" had been described that clearly and succinctly, it wouldn't have taken over 20 minutes for most of the people in my class to grasp the concept!!  Have you ever considered writing educational materials? Great communication skills!! Kudos to you...

Posted by Faith LaRosse, Realtor(R) (Springer Realty Group) almost 10 years ago

Great post.  Education is power!  Too many times buyers are out flying without any protection and THINK the agent is working for them - but as your said, without a signed Buyer Agency form - the agent is working for the seller (at least in my market of DC, Maryland and Virginia).

 

Posted by James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes, When Looking to Buy or Sell - Make the Right Move (Real Living | At Home) almost 10 years ago
Excellent post, Donna, for Localism and rookie agents.  Lots of work and thought went into this, and it shows!
Posted by Margaret Woda, Maryland Real Estate & Military Relocation (Long & Foster Real Estate, Inc.) almost 10 years ago

Faith:  Thank you fo ryour comment.  It took me almost a year after being in sales to fully grasp the agency relationships.  I admit, I can stil be "iffy" when it comes to dual, designated, etc. but I have learned my lesson (once again the hard way) about buyer's agency!  I now understand and doubt that I will forget the power and importance of having a buyer's agency agreement.  I did write some training aides for the company I retired from through the years that I was there.

James:  Same here in Georgia.  Not only do buyers not realize how it works but sometimes, I even have to catch myself that I'm not working for the buyer either without a Buyer Agency Agreement.  It seems so natural to just represent the person you drive around multiple counties, researchng a myriad of topics and questions.

Margaret:  I've been writing this blog over a period of a week, or a little more actually.  Adding a little here and a litte there.  Tweaking it along the way and double checking myself to make sure I had a correct understanding as well.  I appreciate you reading my post and commenting. 

Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) almost 10 years ago
This is a nice way to describe agency law in a very simple way.  I certainly wish that everyone understood agency.
Posted by Tracy Santrock, Raleigh - Cary Realtor/Broker In Charge (Fonville Morisey/Santrock Realty Group, Inc. ) almost 10 years ago
Tracy:  The first time I heard about agencies was of course, during the pre-license sales class and I have to tell you that it sounded like double talk.  I remember reading it over and over because it sounded so odd.  Thank you for checing out my post and leaving a comment.
Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) almost 10 years ago
Donna, Excellent article and I think Faith poses a good question. Hmmm teaching and Real Estate? Where does that path lead?
Posted by Karen Hurst, Rhode Island Waterfront! (RICOASTALLIVING.COM) almost 10 years ago
Karen:  Teaching and Real Estate is quite a concept isn't it!!! :-)  Thank you for your comment and reading my post.
Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) almost 10 years ago

Hello, Teach!  Great post, Donna!  This is very helpful to the buyers especially, since they seem to want to talk to the listing agent without representation.  

You may want to post this excellent information to localism, Donna.  Thanks! 

Posted by Yolanda Hoversten, Broker - O Fallon, IL Real Estate (Berkshire Hathaway HomeServices Elite Properties) almost 10 years ago
Yolanda:  Coming from you, I take this to be a true compliment.  Thank you very much for your thoughts.
Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) almost 10 years ago
great post, great topic!
Posted by Ken Stampe, iBrandPlan (iBrandPlan.com - Grow your e-Profile & Brand) almost 10 years ago

Not using a Buyer Agency Agreement is like not having a Seller sign a Listing Agreement. Why would you work for free?

Christina

Posted by Christina Cavins, www.BuySellOH.com Search Ohio Homes For Sale (Irongate Inc. REALTORS) about 9 years ago

Christina:  Good point.  Thank you.

Posted by Donna Yates, Blue Ridge Mountains (BHGRE - Metro Brokers) about 9 years ago

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