|
>>Our
COMPLETE Guide to Buying a Home
Buyer's Toolkit |
FREE
Relocation Package | Featured
Listings | Buyer
Services Tour (Flash) | Search
the MLS | Schools
|
Local Property Taxes
|
Newsletter
Some
home buyers work exclusively with a buyer's broker,
specifically hired to represent them. Some work with
sellers' brokers. In either case, choosing the right
REALTOR® is a crucial first step in the home buying
process. In making this important decision you should
understand:
- Who
is a REALTOR
- Using
an agent and the obligations that are owed to you
- The
difference between a buyer's and seller's broker
- How
to evaluate an agent.
Who
is a REALTOR?
The terms agent, broker and REALTOR are often used interchangeably,
but have very different meanings. For example, not all
agents (also called salespersons) or brokers are REALTORS.
Learn who is a REALTOR and the reasons why you should
use one.
As
a prerequisite to selling real estate, a person must
be licensed by the state in which they work, either
as an agent/salesperson or as a broker. Before a license
is issued, minimum standards for education, examinations
and experience, which are determined on a state by state
basis, must be met. After receiving a real estate license,
most agents go on to join their local board or association
of REALTORS and the National Association of REALTORS
(NAR), the world's largest professional trade association.
They can then call themselves REALTORS. The term "REALTOR"
is a registered collective membership mark that identifies
a real estate professional who is a member of the National
Association of REALTORS and subscribes to its strict
Code of Ethics (which in many cases goes beyond state
law). In most areas, it is the REALTOR who shares information
on the homes they are marketing, through a Multiple
Listing Service (MLS). Working with a REALTOR who belongs
to an MLS will give you access to the greatest number
of homes.
Using
an Agent and the Obligations That are Owed to You
An
agent is bound by certain legal obligations. Traditionally,
these common-law obligations are to: Put the client's
interests above anyone else's; keep the client's information
confidential; obey the client's lawful instructions;
report to the client anything that would be useful;
and account to the client for any money involved. NOTE:
A REALTOR is held to an even higher standard of conduct
under the NAR's Code of Ethics. In recent years, state
laws have been passed setting up various duties for
different types of agents. As you start working with
a REALTOR, ask for a clear explanation of your state's
current regulations, so that you will know where you
stand on these important matters.
The
Difference Between a Buyer's and a Seller's Broker
Suppose you sign an offer to buy a home for $150,000.
You really want the property and there's a chance other
offers are coming in, so you tell the broker that "We'll
go up to $160,000 if we have to. But of course don't
tell that to the seller." If you're dealing with a seller's
agent, he or she is duty-bound to tell the seller that
important fact. The seller's agent doesn't have any
duty of confidentiality toward you. Honest treatment
might require that the agent warn you that "I must convey
to the seller anything that would be useful so don't
tell me anything you wouldn't tell the seller."
TIP: If you're dealing with seller's agents,
it's a good idea to keep confidential information to
yourself. These days many home buyers prefer instead
to hire a buyer's broker, one who owes the full range
of duties, including confidentiality and obedience,
to the buyer. A buyer's broker is often paid by the
seller, regardless of the agency relationship.
How
to Evaluate an Agent
In making your decision to work with an agent, there
are certain questions you should ask when evaluating
a potential agent. The first question you should ask
is whether the agent is a REALTOR. You should then ask:
- Does
the agent have an active real estate license in good
standing? (to find this information, you can check
with your state's governing agency)
- Does
the agent belong to the Multiple Listing Service (MLS)
and/or a reliable online home buyer's search service?
(Multiple Listing Services are cooperative information
networks of REALTORS that provide descriptions of
most of the houses for sale in a particular region.)
- Is
real estate their full-time career?
- What
real estate designations does the agent hold?
- Which
party is he or she representing--you or the seller?
The discussion is supposed to occur early on, at "first
serious contact" with you. The agent should discuss
your state's particular definitions of agency, so
you'll know where you stand.
- In
exchange for your commitment, how will the agent help
you accomplish your goals? Will (s)he show you homes
that meet your requirements, and provide you with
the list of the properties he or she is showing you?
Choose
a Neighborhood
|
