The first thing I always tell new clients is that I am a Realtor, not a "House Salesman." Most people don't understand the difference, and view real estate agents in much the same manner as lawyers and used car salesmen.
The truth about my industry is that a great agent, focused solely on the welfare of his/her client, makes the process seem effortless and pain-free, whereas a poor agent, more concerned with their own welfare, can turn the dream of home ownership into a nightmare. It is extremely important, therefore, that you understand the role of an agent, and use care and consideration when choosing one.
Lets start with real estate agents vs. Realtors.
All Realtors are real estate agents, but not all real estate agents are Realtors. Anyone who has been licensed by the state to practice real estate is a real estate agent. Realtors, on the other hand, are members of the National Association of Realtors, and have sworn to practice their trade ethically, following the carefully crafted guidelines of that organization.
Simply stated, a real estate agent represents you to a third party, a buyer or seller, keeping the protection of your interests as their primary goal. Of all issues that arise during a normal real estate transaction, the agent's commission is of the least importance. Remember also, that the agent works for you, and must abide by your decisions, as long as those decisions are not illegal or blatantly unreasonable.
A good agent will meet with you first to gain a better understanding of your needs. In the course of that initial meeting, the agent should review the current market conditions, the intricacies of your particular transaction, and the probable issues that may confront you as the process moves forward. When you leave that meeting, you should be thoroughly comfortable with your knowledge and expectations of the upcoming transaction.
Above all else, communication is the key. You should be kept up to date on the most recent issues concerning your deal, and should express to your agent any questions or concerns that you may have. Your agent should advise you on issues that fall within his/her area of expertise, but should never tell you what to do, or lend advise on issues outside of their scope (ie; taxes, mortgages, title, etc.).
Finally, like any relationship, some are better than others. If you find yourself questioning the agents commitment to your transaction, discuss it with them, and if you are still not satisfied, find another agent.
Monday, February 6, 2012
Sunday, February 5, 2012
Real Estate Agency
The next few blogs will focus on agents, or the agency relationship. It is extremely important to understand what an agent does, who the agent actually is, and what expectations you should have for your agent. A good agent can make the home buying process seem relatively effortless, whereas, a poor agent can make you long for your studio apartment.
An "Agent" is simply someone who represents you, the Principal, in a business transaction when dealing with a third party. In some cases an agent can perform all of the tasks normally assigned to the Principal, some of those tasks, or only a very specific task. Real estate agents fall into the latter category, having the authority to represent you only throughout a single real estate transaction.
When most people speak of their real estate agent they are usually referring to the person who took them around to see properties, or perhaps kept pestering them to list their home. In most cases, however, that person is actually a "sub-agent" of the actual agent, better known as the "Broker". Real estate agents, if not licensed as a broker, must work under someone, or some entity, who is. In my case, I am licensed to sell real estate in California, but not licensed as a broker, therefore I work for Keller Williams Realty; a licensed real estate broker. When you, the Principal, hire an agent, you are actually hiring the brokerage whose license that agent works under.
It is imperative, in any financial transaction, that you have someone representing your interests. I have noticed a recent trend where some buyer's are going directly to the listing agent believing that they will somehow obtain a better price. This is a dangerous trend, and leaves the buyer exposed to the conflicting interests between the buyer and seller, and never results in a reduction in the asking price of the home.
An "Agent" is simply someone who represents you, the Principal, in a business transaction when dealing with a third party. In some cases an agent can perform all of the tasks normally assigned to the Principal, some of those tasks, or only a very specific task. Real estate agents fall into the latter category, having the authority to represent you only throughout a single real estate transaction.
When most people speak of their real estate agent they are usually referring to the person who took them around to see properties, or perhaps kept pestering them to list their home. In most cases, however, that person is actually a "sub-agent" of the actual agent, better known as the "Broker". Real estate agents, if not licensed as a broker, must work under someone, or some entity, who is. In my case, I am licensed to sell real estate in California, but not licensed as a broker, therefore I work for Keller Williams Realty; a licensed real estate broker. When you, the Principal, hire an agent, you are actually hiring the brokerage whose license that agent works under.
It is imperative, in any financial transaction, that you have someone representing your interests. I have noticed a recent trend where some buyer's are going directly to the listing agent believing that they will somehow obtain a better price. This is a dangerous trend, and leaves the buyer exposed to the conflicting interests between the buyer and seller, and never results in a reduction in the asking price of the home.
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