By law, we must discuss and declare our relationship with our clients. In residential real estate, it is uncommon for a real estate licensee to facilitate a transaction without â€œrepresentingâ€™ a client. My discussion focuses on representation, since most residential transactions are conducted under the relationship(s) of buyer agent, seller agent or dual agent.
When the seller hires a listing agent to market their property and guide them through the process, that seller has chosen someone they knew and trusted, or someone they interviewed and chose because they believed that agent was the most capable of helping them achieve the goals. Logically, the seller seeks the highest and best price possible in their sale price. If there are any discoveries along the road to closing that present obstacles, the seller is looking to their agent to negotiate on their behalf for the most favorable outcome for the seller.
Along comes you the buyer who contacts the listing agent. By law, if the agent is acting as a dual agent, he/she must advocate equally for both you ant the seller. You, as a buyer, want the lowest price and best terms. Again, if there are any discoveries along the path to closing that create the need to negotiate a credit or repair, you will be seeking the outcome most favorable to you. And, you will look to your â€œagentâ€ to assist you in achieving this goal.
How does one agent serve two masters? How do I help the seller achieve the goal that he/she hired me to do? And, concurrently, how do I fulfill your expectations?
This is the argument against dual agency. In some states dual agency is not allowed.
In NJ, agency and representation is established at the brokerage (company) level. This means that if you work with any agent from the same company on that firmâ€™s listing, you are working with a dual agent. And, while that is true, and common, it does work well...usually.
If you are working with â€˜Annâ€ and â€œJaneâ€ is the listing agent, both agents are bound by the fiduciary obligations to both buyer and seller. However, each client is afforded the confidentiality of the discussions between themselves and their agent.
Who you choose to represent you can have a substantial impact on the outcome of the transaction. It can make the difference of whether the transactions closes or not, how smoothly the process is, and it can definitely impact the financial bottom line.
The cost of the buyer agent in built into the transaction. The fees which the seller will pay are already established with a portion of that compensation allocated for the buyer agent and a portion allocated for the seller agent. If the agent representing the seller also represents the buyer, the entire fee will be earned by that one agent. The majority of all transactions closed are handled by 2 agents, not a single agent. Sellers agents are thrilled to achieve a sale for their client (and compensation for themselves) and welcome buyer agents.
It strongly behooves your best interest to select an agent who is competent, experienced and committed to work hard on your behalf. I personally know a few agents who service the areas in your search. These individuals are not names from a book, but agents who I know and trust, and would recommend to my closest family members. If you have an interest in interviewing agents to represent you, I would be happy to discuss strategies for selecting agents and provide you referrals for consideration. A buyer agent can show you any property and will represent you and your interests in the process from start to closing, and even post-closing.
There are circumstances, the exception...not the norm, when I do recommend (or accept) dual agency with a single agent as a good approach. That recommendation is extremely rare, though. I highly recommend selecting a buyer agent and working closely with that person to achieve your best results.
Deborah "Deb" Madey - Broker
Peninsula Realty Group
732 530 7755 Main
732 530 6350 Direct
732 784 8450 Mobile (Text or Voice)
You can ask another agent in your company to step in when negotiating, if it is your own listing, but no matter what...........we are all still dual agents, whether it is our listing or someone sitting at the next desk's listing..... or someone in another company office in another town.
We will still be bound by the restrictions and rules for dual agency. There is no way around it. NJ doesntt offer any options.
You cannot show a company listing and say: "This house is overpriced - you should only offer $ XXX,XXX".
So - to those (NJ) agents who fervently denounce dual agency - please tell me -- what do you do?? Really - what do you do under those circumstances??
If you are in a 4 person company with 1 office, then I suppose showing a company listing isn't really an issue that will crop up very often - but then again, it might.
If, howvever, one works for Prudential or Coldwell Banker or ReMax, or Keller Williams....or Weichert - it is pretty certain that you will wind up needing to show company listings at some point..
So....what do you do?
Do you call up your favoirte agent in another company, and tell them this is their lucky day ,as you must refer the buyers you have been working with for 6 months to them??
And, if you are so inclined to do that (after paying a visit to your closest mental health facility!) how does your buyer feel about being pushed off to a strange agent??
Is this really being done?
Is this practical?
i say, no , imo. it isn't.
We have to, and should, service the buyers we have been working with and developing a relationship with. We should continue to work with them ------- hence, dual agency is the only option. Like it or not.
Ovedr the yearsI have done many deals in the capacity as a dual agent . I have never had anyone feel shortchanged. I have had sellers tell me they hoped I'd be the one to sell their home, I have had buyers feel a comfort level knowing I was handling the entire transaction.
Dual agency can be done right...............and it has to be, because it's the law here.
Good luck, Godswill!!
Simple answer would you go to court have opposing party attorney represent you ?
If YOUR BELIEF is myth if you contact the listing agent you can save money KEEP DREAMING does not happen that way DUE to e & o insurance and agents agreement with their broker.
#1 question I have answered here on Trulia which I contributed to over 10,000 answers worldwide... GEE I sales agreement on a property DID not have a buyers agent NOW I being sued for breach of contract. Are you willing to risk loss of your money? At that point to late for a Realtor OR attorney become involved.
Be smart always use an agent represent you. If I am listing agent buyers believe is want to purchase a home w/o a Realtor... my response is GREAT present you offer on State of Texas sales agreement form WHICH you can't use your not agent. Only a licensed Realtor can use those forms ARE you wanting to get sued by State of Texas. As a listing agent I don't represent you therefore I don't have provide you contract to complete NOR can I complete it on your behalf.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
There is no reason you can not call the listing agent on a property.
Dual agency is not the crazy hide everything from the buyer that we can about the house or land to sell it at any cost. Nope. In todayâ€™s world, if you are a normal person you need to do your due diligence anyway.. hire an inspector or someone to look at the property, the questions will come out and be answered anyway.. and your Attorney will discuss that , not your Realtor.
I have never been told by any seller anything like " O.k.. listen, we have 15 large oil tanks under the house and we are telling you.. but you better not break your fiduciary responsibility and tell anyone about it!
The property is going to sell for what it is worth. period. I seriously doubt that the listing agent or the seller is going to make you pay more then you want pay anyway.
Remember, there is nothing that a buyerâ€™s agent can do in this situation to get that house any cheaper for you than any other agent. There is no magic wand that someone named a buyerâ€™s agent will wave that will enlighten the homeowner to sell you the house for less than he/she will take.
Just find an agent that you are comfortable working with.
Although all agents must be fair and honest in their dealings with the public, their true relationship is with their client and his or her best interests. This is why Buyer Agency came about - for the protection of the Buyer.
As a Realtor for 29 years and a Broker in 2 states. I would never go to locality, that I know nothing about, without a Buyer's Agent representing me in the purchase of real estate. Being made aware of local laws and regulations and customs is most important as well.
The seller pays commission to both sides - so if you work with the listing agent then both sides will be paid one way.
In my opinion, YES, you will be well-served by having your own representation - someone working with only your interests in mind.
Good luck to you,
Unwavering Commitment to Service, Unsurpassed Results
Seller's agent - loyalty to the seller. Must tell the seller any information he learns about the buyer's willingness to buy the property. The goal is to help the seller sell his property for the highest and best price the current market will bear. Once a seller hires an agent from a real estate company to market his property, all agents in the same company also represent the seller. The New Jersey Department of Consumer Affairs has published a "Seller's Property Disclosure." At this point in time, the seller is not mandated to fill out this form, but many real estate companies do request this of their sellers. The seller's agent. The seller's agent will counsel the seller on how to evaluate and respond to buyers' offers.
Buyer's agent - loyalty to the buyer. The goal is to help the buyer purchase a property for the lowest price and best terms the current market will bear. The buyer's agent must maintain confidentiality the buyer's motivation to buy (how strongly she wants to buy the property), and the highest price the buyer is willing to pay other than the price the buyer has offered.
You will need to discuss how the buyer's agent will be paid and the scope of services provided. For example, the relationship may be a "non-exclusive buyers agency agreement" (the agent will represent the buyer only on properties the agent has shown the buyer) and generally, in this type of relationship, the buyer's agent agrees to accept the fee paid by the seller through the listing company; the fee offered through the Multiple Listing Service. If a buyer requires a more intensive search for suitable properties then an "exclusive buyer agency agreement" will specify where and how the agent will search for properties, the method of payment, and how long the relationship will last (a beginning date and an ending date).
One of the advantages of using a buyer's agent is that the agent can make any offer to purchase contingent upon the seller supplying the buyer with a "Seller's Property Disclosure" even if the seller did not complete one at the time of the listing. The buyer's agent must tell the buyer any information she learns about the seller's willingness to sell the property and any possibility the seller may accept less than asking price. In addition, a buyer's agent will give advice on any offer the buyer wishes to make.
Disclosed Dual Agent
Dual agent - is an agent (or agents in the same company) who represents both the seller and the buyer in the same transaction. Both the seller and the buyer must give informed (written) consent to the agent(s) working as a disclosed dual agent before the buyer's agent shows any in-house listings.
The disclosed dual agent cannot disclose to the seller the highest price the buyer is willing to pay or how strongly she wants the property; nor can the agent tell the buyer the lowest price the seller will accept or how strongly he wants to sell the property. In Disclosed dual agency facts relating to price and motivation remains confidential.
Material facts to the property or the transaction must still be disclosed to the buyer and seller. During negotiations, the disclosed dual agent will act as a facilitator; the agent(s) cannot advise either party how to gain an advantage over the other party.
Transaction broker in New Jersey is a real estate licensee who represents neither the buyer nor the seller in a transaction. The transaction broker will act as a facilitator. Since the agent does not represent either party, there is no duty of confidentiality. The agent can share information with either the buyer or seller in an effort to complete the transaction. The goal of the transaction broker is to help the buyer and seller make a deal, and, in doing so,
Share information with either the buyer or seller in an effort to complete the transaction.
The buyer's agent will make a commitment to the buyers and help in the negotiation for the purchase of the property. Most buyer's feel that negotiation skills are very important to them and as a Certified Negotiation Expert, I always make sure that my buyer understands that as their buyer's agent, I am making a commitment to work together as a team.
Please give me a call if I can assist you in any way. I have lived in Hawthorne for 25 years and am an agent for Keller Williams Team Realty in Clifton, NJ.
Licensed REALTORÂ® in NJ
Keller Williams Team Realty
I highly recommend you get a buyers agent. Usually they are paid by the seller so you save nothing by doing the work yourself. If you get a good agent, you will probably save money using the agent as they know the market and what a fair price is for the properties in the market they serve.
You also bring up items that are done in conjunction with the sale "Down the road, we intend getting inspection and appraisal done and intend of writing these & other contiquencies into the contract. we are looking also on past sales values, taxes, neighborhood, school, etc on each of these properties..also price renegotiations.. "
This is where a good agent will show you their true metal. They will know inspectors, mortgage representatives, comparative sales data (pertinent to your property), how you can research the school and neighborhoods and negotiate the best deal possible.
Double agency should not be a major issue as there are rules and laws in place to protect you. I do, however, use a different agent in my office to represent any buyers who contact me about buying one of my listings. I do this to make 100% certain that the buyer and the seller receive the best service possible.
If you need an agent in the Wayne area please let me know and I will gladly refer you to a professional and reputable agent to make certain you get the best home for you at a price and terms that make you happy. My cell is 908-507-8178 and my email is: email@example.com
Hope this was helpful,
Keller Williams Towne Square
You absolutely will benefit from working with a Buyer Broker. You need to find one who is experienced (think a minimum of at least five years in the business) A good Buyer Broker will save you time and money. They have tools to research homes much more quickly and thoroughly than you do. They do this every day for a living and no the ins and outs of the contract used better than you ever will. Good Buyer Brokers are expert negotiators and will help you strategize and craft an offer that is to your advantage and yet acceptable to the Seller. Additionally a good Buyer Broker will know about properties not currently on the market but available for sale. They will be able to offer you more options than you are finding on your own. Finally, they will offer you resources that they have vetted lenders, inspectors, attorneys and more.
The truth is for a Buyer to not use a Buyer Broker is about the same as going into a gunfight with out any ammunition in your gun, the chances are you will be killed by the competition. Typically, buyers who buy directly from the Seller or without a buyer broker, end up paying 1-3% more than they would have had they used one. Do yourself a favor and start interviewing now and get one sooner rather than later.
It now time to shop for a good & experienced buyer Agent...and get the ball rolling.
It's good to hear that, I never had a clue that someone else should be doing the heavy lifting, while I just give them a general guideline of the type of home/area/school/price range/etc that am looking for.
I had been doing someone else job all these while; it is not all lost or in vein though... because I will be negotiating with my Buyer Agent to see if he/she can pay for some of the work that has been done already on his/her behalf....:)
You can find information below.
That being said also be aware that if you have been to a property with another agent (excluding and Open House) that agent will have cause to claim commission if you put in an offer with another agent. So be sure to view all properties with your buyers agent as well. Good luck and happy house hunting.
Everyone has a different opinion about choosing to work with the listing agent, or to work with a buyers agent. The problem is that if you are going to be looking at alot of properties and the agent you pick is a good one, the liklihood that you will experience dual agency is a good one. Dual agency happens when an agent shows you a listing that her company has. So, the really good agencies will have a monopoly on an area and dual agency will most likely come in to play.
There is no cost to you to work with an agent, dual or otherwise, as the sellers pay the commission. And, just to correct your misconception--the agents work for you, the client. We hang our licenses at a company, but we are 1099 employees--ie self employed.
Dual agency is doable but not desirable because the dual agent has to be neutral and loses a lot of the ability to advise and negotiate.
Regarding how the buyer's agent is paid: the listing agent negotiates the commission rate with the seller and they decide how that commission is split between listing agent and buyer's agent. Who pays is a matter of perspective: the list price of the house (and what the seller has in mind as the bottom number they can accept) has the commission factored in. The buyer brings the money to the table so in essence, although the seller has to pay the money out of their proceeds, the buyer pays for the commission.
If you use the listing agent as your agent, not only will your representation be compromised, you won't save any money because the listing agent will double end the commission.
In my experience with buyers, I find that their searches evolve, and I think you lose the benefit of that when you approach it piece meal - ie, one listing and one listing agent at a time. Your buyer's agent can help as a guide, assist you in bringing your search into focus. The parameter becomes you, rather than a focus on a selling you a particular property. Also, you will work harder than you need to work doing this on your own - no need to do so, enjoy the great leverge of the internet, most of my buyers do, and we work in concert in finding their home. But let your agent do the heavy lifting. There is a lot of ground to cover in a search, but very important work to be done, and oversight from contract to close. Align yourself now with an agent that will assist you every step of the way.
The seller generally pays commission to both sides - ie, the full commission which is shared in an agreed upon proportion between listing and selling agent.
Dual agency is when the same broker represents both seller and buyer - when it is the listing agent that brings the buyer, I think it makes sense for her to draw in another resource to represent the buyer in negotations.
Good luck to you,
Unwaveirng Commitment to Service
It sounds like you have been doing your homework on what is involved in the home purchasing process by researching neighborhoods, schools, taxes, etc. on properties in the areas that interest you. A buyer's agent will work for you in your best interests; not the sellers. This means that they will research properties of interest to assist you in determining a fair and competitive offer. They will guide you through the inspections and obtaining and following up on a mortgage if needed. Basically, they will be there to counsel you throughout the entire process so that you can obtain the best price and make it as smooth as possible to reduce the stress involved.
In most home purchase transactions it is the seller who pays the buyer's agent commission. However; sometimes if the property is a short sale (where the seller is experiencing financial difficulty) or a foreclosed property (owned by the bank) where the seller doesn't offer any commission or very little, then the buyer pays the fee. Your agent should inform you of this up front.
I hope this is helpful to you.
Prudential Connecticut Realty
secondly if you work with a buyers agent who is familiar with the territory they can help you avoid the itfalls that might be lying in wait (flood zones being a good example)
Finding a good home inspector to help you negotiating inspection issues. arranging oil tank inspections and so on - all things you agent is expert in - you get the drift.
P.S. I live in North Haledon
As mentioned, it's in your best interest to work with an agent. Find someone you are comfortable with or maybe a family member or friend has worked with an agent they really liked and can refer them to you.
There is no cost to you and they will handle all aspects of the transaction to make it easier and stress free for you.
Good Luck to you!
Gina Fagnani/Realtor Associate
-Sal Salafia/ The Salafia SOLD Team at RE/MAX Plus
For a referral of a RE/MAX agent in your area feel free to contact us anytime!
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Common Myths About Working With Real Estate Agents
Home & Garden; Home Buying ... time on About Home Buying and Selling, you'll notice that I use a good bit of space helping you understand buyer ... had to sign a Buyer Agency ...
homebuying.about.com/cs/agencies/a/realestate.htm - Cached
If the home is listed with a realtor you do need a realtor to purchase the property. If you do not have one you can allways use the listing agent for the property which is the dual agency you are speaking of or you can hire a realtor. There is no problem with dual agency it happens eveyday as a matter of fact we look to accomplish dual agency in every sale because as realtors we work on comission and we have the seller and the buyer we get paid both ends of the commission. If you have a realtor who is good knowledgeable and ethical it should not be a problem. All dual agency is one realtor represention or one real estate company representng both buyer and seller. There is always supposed to be a fiduciary responsiblity to the clients you represent. As far as money is concerned or cost for a buyers agent we work on commission when the house closes and the seller pays our commission out of the offer he accepted from you so if any realtor tries to charge you to represent you as a buyer stay clear of them. If you have any further questions feel free to call me anytime and Happy New Year.
Ron Simone Jr
All Towne Realty