Whether you are a buyer or seller, it is crucial to understand who represents whom in a real estate transaction. In most states an agent can represent either the seller or buyer as a single agent,
and in some states representing both buyer and seller as a dual agent (with written consent).
In some states an agent can act as a transaction broker without representing either the buyer or seller.
Almost all states have agency disclosure laws that require your signed consent to represention.
The agency relationship for Sellers is not the same as for Buyers.
If you are a buyer, your agents status is not always as clear. You may for example, work with the seller's agent in some states, (known as a dual agent) if you don't have an agent, or other states allow you to use the seller's agent as a transaction broker. Or you may use an agent as a single agent representing you.You can also choose to work with a buyer's broker who agrees in writing to represent only you. Some states presume that an agent who works with a buyer is the buyer's agent.
A seller's agent is the listing agent where you sign a contract for a specified period to sell your home and represent you in the sale. In some states agents can do certain functions of real estate for you, for example list your home on the MLS to be sold by other Realtors, where you only pay the buyer's realtor only if they bring you a buyer, other wise if you sell your home on your own without an agents help you pay no commission. Keep in mind if you choose to only list your home on the mls and sell it on your own, you still have to handle all of the other functions from advertising your home & showing it, to closing on it. Though some states allow you to hire an agent to handle some of those functions for you.
Make sure to clarify with the agent as to what their status will be, so you will know what the status of your agent is and whom the agent is representing and what their function will be. Before you tell any important information! Most states require an agency disclosure before you start to work with an agent. So if you're not given an agency disclosure ask if there is one!
Contract Cautions
Most Contracts span 60-90 days, contracts longer than 90 days can backfire if the market goes sour. Visit the tips & article section to understand about how contracts work and about other transactions.
Marketing & Advetising
Make sure to talk with your prospective agent about the type marketing and advertising they would do
for your home. So you will understand what their marketing plan will include. Remember that the agent works for you so make sure you give input about marketing your home.
Visit the tips & article section on marketing your home.
Make sure to clarify with the agent as to what their status will be, so you will know what the status of your agent is and whom the agent is representing and what their function will be. Before you tell any important information! Most states require an agency disclosure before
you start to work with an agent. So if you're not given an agency disclosure ask if there is one!
Before you sign a contract to work with a buyer's agent, make sure it specifies an expiration date and fee. Visit the tips & article section to understand about how contracts work and about other transactions.
Getting PreApproved or Pre-qualifying
Sellers and Agents will take you more serious if you are preApproved, because sellers know that you are approved by a lender and only need to find the home you want. So sellers and agents know you will be less likely to waste their time. You can start by first pre-qualifying yourself.
