advantages of different type of agency in real estate agency

Asked by Alan, New York County, NY Sun Jun 12, 2011

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John Arendsen, Agent, Leucadia, CA
Tue Aug 2, 2011
I know I showed up a little late on this thread so if it's not too late would you mind elaborating on your question a little?
0 votes
Ted Mackel, Agent, Simi Valley, CA
Sun Jun 12, 2011
Alan,

Are you planing to conduct a real estate transaction in California? I notice you are from New York. The laws in New York and California are different.

Are you asking about the different companies?

Types of Agency might be a different question. In California we have exclusive Agency relationship with clients and Standard Agency and an Open Agency.

Here are the short answers:

Exclusive Agency the client agrees to compensate the broker on any transaction the buyer conducts during the agreement period. The Seller agrees to compensate the Broker an any sale completed during the agreement period.

Open Agency the client can work with any broker they want and compensation to the Broker with a open contract is limited to only the transactions brought by that broker.

Standard Agency is more for a listing in that the Seller is not obligated to compensate the broker if the seller finds their own buyer for the property.

If you are selling. Most Brokers are going to want an Exclusive agency, the money and time put into marketing a property is going to be important an any agent that has a proven track record.

As far as Broker buyer contracts - that can start it's own lengthy debate as to whether it is good or bad, however not matter what the arguments say, you will find that in California it is probably 10 to 1 agents not working with a buyer broker contract.
Web Reference:  http://www.homebuysblog.com
0 votes
David Kerr, Agent, Sonoma, CA
Sun Jun 12, 2011
Hi Alan,
You have gotten a good answer on the company as an agency from some of the other replies but there is another aspect to agency. In California agency refers to both the company as well as the relationship between the agent and the buyer or the seller in a transaction. As I always tell my clients the agent is both me and my company which is important when it is a dual agency relationship (an agent representing both the buyer and the seller). In California it is required by state law that the kind of agency relationship be disclosed to the buyer and seller in a real estate transaction. In agency there is a seller’s agent, a buyer’s agent and a dual agent. With each type of these types of agency, the agent is a fiduciary and has the duty of utmost care, integrity, honesty, and loyalty in dealings with the party they represent. Some buyers and sellers feel it is best to be represented by only one agent and that it will give them an advantage in the negotiations but as a dual agent the fiduciary duties apply to both parties so the agent cannot take sides or reveal private information i.e. the buyer or seller’s bottom line. Some buyers and sellers feel it is best to have their own agent so that there can be no conflict of interest in a transaction. It is important to note that it is considered a dual agency when there are two different agents representing the buyer and the seller but they both agents belong to the same company. As I said earlier, the agent is both the company and the agent…
I personally try not to represent both a buyer and a seller in the same transaction but many agents do and do it well.

Best of luck!
David
0 votes
Team Komar, Agent, Camarillo, CA
Sun Jun 12, 2011
This is an exciting time purchasing a home, especially with these incredible values and interest rates right now.
I defer to the other answers as they are very concise with the differences in Agencies.

One other thing I wanted to touch on though, make sure you get a "live" person on the other end and not a voicemail. I have a full-time receptionist who normally can answer your concerns, or can get in touch with
me immediately.

I find that the smaller boutique real estate companies, since we have access to the same tools that the
big guys do, give better "one on one" service. Your relationship is just one phone
call away, and you get someone everytime you call 7 days a week, from 7am to 10pm during a stressful
buying period in your life.

Good luck in whatever direction you decide to take. I would welcome the opportunity to assist you having
lived in Oxnard over 15 years before moving to Camarillo recently. I am also an affiliate for another
web-based company that forwards all Oxnard buyers to me in zipcodes 93030, 93033, 93035, and 93036.
0 votes
Temple Schne…, Agent, Ventura, CA
Sun Jun 12, 2011
Hi Alan,

What are the advantages of different types of Agencies? Do you mean when it comes to choosing from the different companies out there? Well, there are big companies and small companies to choose from. Both big and small companies have equal access to the internet, Realtor.com, Trulia.com, Zillow.com, the newspapers, Open Houses, the MLS's and any other clever marketing venues.

In all honesty, when you choose a Realtor to work with, it should be a person that you feel comfortable with. Someone with a good reputation, experience in the business, someone you trust, and feel confident that they can help you to achieve your goal effectively. I for one, have worked for large companies, and I prefer to work for a small company (my own), because I can pass on my increased earnings (by being my own Broker) - to my clients. My Buyers & Sellers really appreciate this extra value...

Have you already fallen in love with a home in Oxnard? Check my FB page for a new Oxnard listing... Open House today!
0 votes
Barry Shapiro, Agent, Camarillo, CA
Sun Jun 12, 2011
Hi Alan... This is an excellent question to ask up front before proceeding with the home-buying process.
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