There is a Difference

Ever wondered about the meaning of the term real estate "agent?" Many believe the term "agent" and "salesperson" are synonymous, but as the terms relate to real estate, their difference is quite important.

The dictionary defines "agent" as "a person empowered to act for another." A salesperson is defined as "a person employed to sell goods." Although real estate agents are actively involved in sales work, their responsibilities as an "agent" go much further.

Under the "law of agency," an individual may be employed or "empowered" to act on behalf of another. For example, homeowners may employ a real estate company as their "agent" to represent their interests in locating a buyer. Then the "agent" is obligated to faithfully represent the owners' interests by locating a purchaser at the highest possible price, and on favorable terms.

When the agent represents the sellers, only one obligation - honesty - is owed to the other parties to the transaction. In short, when representing the sellers, the agent acts on their behalf, while treating the buyers with complete integrity.

Does that mean buyers should be wary of agents who represent sellers? Not at all. They should, however, be informed about whom the agent is representing.

Can buyers also be represented by an agent? Of course, but any such arrangement should be formalized in writing, including an agreement regarding compensation.

Whether buying or selling a home, it is wise to know who is represented by whom. If in doubt, ask.

Real Estate Professionals -- Still the No. 1 Choice by Home Sellers

In a soft housing market, home sellers need help. And real estate professionals are there to provide it. While the Internet and other tools are indeed useful for those looking to buy a home, home sellers still rely on the expertise and knowledge of their real estate agents. Our Market Intelligence feature this month looks at what those sellers most want from their real estate professionals.

Click here for full article.



"Copyright National Association of REALTORS®, Reprinted with permission."

DOUBLE YOUR PLEASURE!

How would you feel if you owned two homes, with two sets of monthly mortgage payments, two sets of taxes and insurance, and the responsibility for the maintenance on both?

When you're ready to buy your next home, it could happen. Let's take a look at why. More often than not, buyers begin looking at prospective new homes before they have sold their existing home. When they find a home that suits their needs, a potentially painful dilemma may arise. How do they make a commitment to purchase the second home when they have not yet sold the first one?

One common solution is to sign an agreement to purchase the second home that is made contingent upon the sale of their existing home. In other words, if the first home doesn't sell, the buyers have no obligation to complete the purchase of the second one.

You can make the most of this situation by remembering one very important concept: work exclusively with the same real estate professional on both homes.

Here's why. When you decide on which new home you plan to buy, your agent will help structure the purchase, taking into account your existing home. By letting the same agent market your present home, both purchase and sale can be coordinated to your benefit, resulting in deep satisfaction rather than a deep dilemma.

MULTIPLE CHOICE!

Once you decide to list your home for sale, how long will it take to sell? How long should you give the agent to successfully market your home?

The best answer is to be reasonable. But what’s reasonable? 30 days? What about 300 days? Of course, there is no standard response.

Let's look at how to determine the right amount of time in your situation. With each real estate market being different, it takes longer to sell a home in some areas than others. A home that may sell in 15 days in one city may take 87 days in another, or even six to nine months in yet another.

Actually, the time needed to attract a buyer can be made longer or shorter by offering a higher or lower price, and better or less desirable terms and amenities.

Ask your agent to provide information relative to current selling times in your neighborhood. Discuss the factors that may help or hinder the sale of your home, and ask for your agent's best estimate of selling time for your home.

Then, allow the appropriate amount of time to properly market your home. By giving a reasonable length of time in which to perform, you will have the complete determination of your agent, and will no doubt be pleased with the results - the ultimate sale of your home.

Don't Go Stale!

As you prepare to sell your home, you probably expect to have a For Sale sign in the yard, information on the Multiple Listing Service, and perhaps an Open House. If you expect top dollar in today's market, you can count on a real estate professional to provide many more services in addition to those three most obvious elements of successful marketing.

The agent will handle all aspects of the sale, from preparing your home to attract buyers through the negotiation of the purchase offer. Somewhere in the middle of all that is effective marketing through online advertising, targeted mailings, and personal networking, not just on behalf of the agent, but through a whole team of professionals.

When that offer comes in, all the experts in the office spring into action, helping the entire process move along smoothly to a satisfying conclusion. Your agent has a personal stake in selling your home for the highest price possible in the shortest time possible. If your listing languishes on the market, it becomes like stale bread that might sell for half price at the supermarket.

Time and money are directly related, whether we're talking about bread or houses. Price your home competitively from the start, present it in the finest manner possible, and market it through the expertise of a professional supported by a network of experts.

Enter the Buffer Zone!

What is the primary objective for a buyer when negotiating the purchase of a home? Would it be fair to say that the buyers want the lowest price possible with the most liberal terms? And what about the sellers of a home? Would you agree that the sellers want the highest price possible with the terms most favorable to them?

It’s pretty easy to see then that the buyers and the sellers in a real estate transaction each have goals that are diametrically opposed to one another. As a result, they can each become highly anxious, emotional, and especially frustrated by the negotiating process. The solution is to create a "buffer zone," or an arena in which negotiations can be carried out in a logical, businesslike and objective manner.

This can be accomplished through the use of a reputable real estate company and its agent. Here's why: although a real estate agent may represent either the seller or the buyer (or sometimes both) in a purchase transaction, all parties must be treated fairly.

Also, not being emotionally involved in the transaction, the agent becomes an objective or "neutral" participant - the "buffer." Thus, both buyers and sellers can make comments, offers, and counteroffers without fear of raising each other’s anxiety levels. The result can be a highly rewarding home purchase and sale for buyers and sellers.