How Choosing an Agent Can Benefit You the Most
Once you have decided to purchase or sell a home, the next step is to find a real estate agent who will best represent you and your housing needs. There are three types of real estate agencies: the Buyer’s Agent, the Seller’s Agent, and the Dual Agent.
These are the three typical Agent/Client relationships that may occur. The terms of these relationships may vary from state to state, so please verify the terms of these Agency Agreements in your local area before signing any agreements.
The Buyer’s Agent
Many prospective home buyers do not feel it is necessary to contract the services of a real estate agent. They feel that the listing agent will represent them fairly during the buying process. However, many buyers do not know that the listing agent, or Seller’s Agency, works solely on behalf of and in the home seller's best interest. Therefore, it is essential that the buyer seek out and find a Buyer’s Agent that will best meet their needs. Reach us for New Mexico real estate agents.
A Buyer’s Agency works solely on behalf of the buyer. The buyer’s agent will assist the client in negotiating the terms of a contract. In addition, they will gather information on zoning issues, past tax data, schools, and community services, and any other information deemed necessary by the buyer before making the decision to extend an offer on a home.
Why Agreement Is Needed
Many prospective home buyers have the misconception that they represent the buyer once they begin working with an agent. However, this is not always the case. Unless there is a signed Buyer’s Agency Agreement, the agent that is working with the buyer still represents the seller’s interests in the transaction. Without the agreement, there is certain information that the agent cannot disclose to the prospective buyer:
Normally, no extra costs are associated with signing a Buyer's Agency Agreement. Any commissions paid to agents in a sales transaction are usually paid at closing by the seller.
The Seller’s Agent
This agent solely represents the seller. If there is an agent involved in a sales transaction, by default, that agent will represent the home seller unless there is a signed Buyer’s Agency Agreement with the buyer.
When looking for an agent to work with, it is best to interview a minimum of 2 to 3 real estate agents before making your final decision. Ask friends and relatives for names that they would recommend.
How to Decide
Below is a list of questions that may help you in deciding on which agent will best meet your needs:
Can you provide me with the names and phone numbers of some of your most recent clients who would be willing to give me a reference (if this agent has not already been referred to you by a friend or family member)?
When selecting a real estate agent to represent your interests, it is important to find an agent you trust and feel comfortable with. Remember, this is probably the biggest sales transaction you will have in your life, so it is important to work with someone that you are sure will get you the best offer!
The Dual Agent
A Dual Agency Agreement occurs when two agents who work for the same Broker each represent a buyer or a seller in the sales transaction. This agreement must be disclosed to both the seller and the buyer, and any privileged information cannot be disclosed to the interested party without the other party's permission.
What to Look for in an Agent
In addition to finding a real estate agent that you feel comfortable with and whom you trust, make sure that he/she is a dedicated professional who will work with you until your goals have been met.
They should be familiar with the area. Not only should they be familiar with the housing market, but also with area churches, schools, clubs, and parks.
Also, look for an agent that is a licensed REALTOR®. REALTORS® are individuals who are members of the National Association of REALTORS® (NAR) and must adhere to its strict code of ethics.
Your home buying or selling experience should be a pleasant one by following these guidelines!