Do you really need representation to buy a home?
Over 90% of home buyers choose to use the services of Realtors® and licensed agents for their purchases of real property. Why? A Realtor® can help you access the greatest number of homes possible by using the local Multiple Listing Service (MLS) and can help guide you through the home buying process. However not all agents are equal nor are the various methods of representation available to you. The agent and representation you choose can have great influence over: (a) the number of homes you have to choose from; (b) the depth and breath of the information and guidance you receive; (c) the final price you pay for the home.
I recommend seeking representation. I also advise cautious consideration and evaluation when you are selecting your representation.
The person chosen and the method of representation you choose are important to you and your individual needs through out the home buying process.
Below are brief explanations of the different types of agency representations available to you.
Exclusive Buyer’s Agency - [ Me ]
Very few agents offer exclusive buyers agency.
It was a personal decision I made to work exclusively for Buyers and not seek to list homes for sale.
This decision effectively removes me from 50% of the potential residential real estate market. Why is this important to you?
Why would I say no to someone asking me to list and sell their home? Good Question.
My first transaction was the sale of my very first listing.
I sold the property at the first open house. For me, it was very uncomfortable working both sides of the table. I wanted and worked to be fair to all parties and thankfully it was a smooth transaction however it left me with a queasy and uneasy feeling. It just didn't feel right. Although the common mantra in the real estate business is Listings, Listings, Listings, I have discovered that I prefer representing the buyer’s side most, I love doing the research and negotiating for my clients to get them the best deal possible. By doing what I do best, I am able to earn sufficient income, I love my work and best of all; I make friends for life because I earn my clients respect by doing a good honest work.
Since I have no listings in my pocket there is never a question as to whom my loyalties belong, I will search all of the available homes, even For Sale by Owner homes and new construction by builders with out bias for you.
I will aggressively research and negotiate 100% of the time on your behalf so that you pay the lowest possible price for the home and are confident of the home you are purchasing.
I will help you get professional home inspections and evaluations to assist you in your determinations of the true value and condition of the property.
I will give you my best honest advice in all situations and work diligently to protect your best interest throughout the entire transaction.
Exclusive Seller’s Agency – [ Them ]
This was the norm, where the entire firm would only work for the sellers.
Everyone in the firm could then claim that they fought diligently to get the most money for their clients because they never ever worked for the home’s buyer; it was all about the seller.
This 100% seller representation is fading in favor of mixed agency. It is however the situation which exist when you call an agent (the listing agent) directly who is marketing a home or you walk into their Open House. All agents, when acting as a listing agent work solely for the benefit of the seller’s best interest. Many consumer advocates caution their clients never to contact a listing agent directly but rather to seek out their own representation.
Most real estate companies have today adapted a mixed agency policy.
This policy is best for them but questionable as to whose best interest is served.
Please see the following description.
Designated (Mixed or Dual) Agency – [ Them; working both sides of the table ]
Most real estate firms today have moved into what I term as the "deal maker" mode.
For them it’s a good thing, it allows them to profit from both sides of the transaction.
They claim to work as both seller’s and buyer’s agents.
The problem arises when the firm and its agents represent both buyers and sellers for same real property.
This creates “Dual Agency”.
This raises questions of potential conflict of interest.
Who is in the primary position of agency and who takes the back seat?
Who is protected should conflict arise? Will it be the buyer?
Or will it be the seller?
What about the agents?
Who negotiates for whom?
Who is required to maintain confidentiality and who is required to share everything with the opposing side?
What occurs if a buyer decides to cancel an agreement but the seller wants to hold them to it?
Who does the firm favor in this situation?
Generally speaking it is accepted that the buyer assumes greater risk
because the firm’s initial agreement was with and for the sellers of that property.
Firms earn more commissions by representing both parties in the same transaction and agents are typically encouraged to show and sell the firms listings first.
There may even be an additional bonus for such transactions.
Dual or mixed agency offers the least protection for both buyers and sellers yet today most firms encourage it for their own financial benefit.
***Note***
It is advised that any and all buyers or sellers of real property thoroughly educate themselves as to all aspects of agency as defined by local and state laws prior to entering into a transaction.
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You deserve personal representation to protect your best interest. Call or email me today.
I am your Advocate,
I work only for you!!!
Darrel Quebedeaux
Your Real Estate Investment Consultant
Realtor®
714-317-4366