Real estate agents would say that the more you tell them, the
better they can negotiate on your behalf. However, the degree of
trust you have with an agent may depend upon their legal
obligation. Agents working for buyers have three possible
choices: They can represent the buyer exclusively, called single
agency, or represent the seller exclusively, called sub-agency,
or represent both the buyer and seller in a dual-agency
situation.
Some states require agents to disclose all possible agency
relationships before they enter into a residential real estate
transaction. Here is a summary of the three basic types:
1. In a traditional relationship, real estate agents and brokers
have a fiduciary relationship to the seller. Be aware that the
seller pays the commission of both brokers, not just the one who
lists and shows the property, but also to the sub-broker, who
brings the ready, willing and able buyer to the table. It most
cases you will have 2 broker's splitting the commission.
* Dual agency exists if two agents working for the same broker
represent the buyer and seller in a transaction. A potential
conflict of interest is created if the listing agent has advance
knowledge of another buyer's offer. Therefore, the law states
that a dual agent shall not disclose to the buyer that the
seller will accept less than the list price, or disclose to the
seller that the buyer will pay more than the offer price,
without express written permission. Many times it makes sense to
"assign" someone in your office one side of the transaction,
thus assures there is no conflict of interest.
* A buyer also can hire his or her own agent who will represent
the buyer's interests exclusively. Sometimes a buyer's agent
must be paid out of the buyer's own pocket but the buyer can
trust them with financial information, knowing it will not be
transmitted to the other broker and ultimately to the seller.
More often the seller pays both the selling broker and the
buyer's broker.
About the author:
Christine began her real estate career proving herself a top
producer on a new high rise development. This experience gave
her valuable knowledge of construction as well as the buying
process and resulted in 4-million dollars in sales during her
first year.
http://www.getanewhome.net
