I have spent the last couple days touching on a few key points that illustrate the value a REALTOR® can add to a seller's goals in the current real estate market. Today I will speak on the importance of selecting a REALTOR® when buying real estate. First, I am going to clarify the same key point I brought to the attention of sellers: Not all real estate sales agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS® (NAR) and, as such, is bound by a professional code of conduct and ethical handling of all real estate transactions. Being a member of the NAR is a commitment and speaks volumes concerning what you can and should expect from an NAR member. Bottom line: Be certain your real estate agent is a REALTOR®!
Most buyers are very comfortable - and, in fact, generally welcome, having a REALTOR® involved with their real estate purchases. This is especially true in this area because buyers do not typically pay fees directly to a real estate agents in exchange for their services. Most often if a property has been offered for sale through a REALTOR®'s service, that seller is paying a commission in exchange for the service provided. To the buyer's benefit, the seller's commission generally covers the cost of bringing that buyer to the seller.
Speaking about commissions, this is typically the sole basis of income for most real estate sales agents. What this means is if a buyer makes a property purchase using a real estate sales agent, that agent is compensated for their efforts as part of the transaction with the seller. If, for whatever reason, a buyer uses the services of several sales agents - and does not sign an Exclusive Buyer-Broker Agreement (more on this later) with any agent, the whole matter of which agent is compensated becomes garbled.
This is important for buyers on several levels. The first and primary consideration is the buyer, in effect, is 'hiring' a sales agent when the buyer agrees (either formally or informally) to enlist the agent's services. Sales agents basically compete with one another for this opportunity to provide services to a buyer. My recommendation to buyers, in exchange for the loyalty and service a sales agent will be providing, is to work with and through only one sales agent (ideally read 'REALTOR®'). This is not to say a buyer should not take some time in interviewing and selecting a REALTOR® that is a good match. Neither is it suggesting a sales agent should not be 'fired' if they are not performing as expected but it would encourage a buyer to take into consideration how a buyer's actions may impact who 'gets paid' if buyer happens to have more than one agent involved without clarifying who 'the one' agent is. For greatest harmony, loyalty needs to be a two-way path.
A buyer needs to understand the market sufficiently to be able to make good decisions. A buyer should expect a REALTOR® to provide the guidance, insights, and information necessary to facilitate making those good decisions. A full-time REALTOR® with the ability to listen, a passion for research, and a desire to take the time to treat your transaction with the high level of seriousness it deserves will be your best bet. Ask about credentials, ask about the market, take some time to determine if you would be comfortable working together. Selecting the right REALTOR® is much like picking the perfect puppy: you don't necessarily go with the first one to jump up and down at your feet.
Over the next couple of posts I will address the Exclusive Buyer-Broker Agreement I had referred to earlier in this post. I will also talk about something very important - call 'dual agency' and how it can benefit both buyers and sellers.
I hope you stay tuned! Please note, you can subscribe to this blog at the bottom of the page. Doing so will ensure you receive my new posts as they are published.
Make it a great day!
Jon
http://www.searchfergusfalls.com/
http://www.fergusfallsproperties.com/
Blog: http://www.fergusfalls-realestate.com/
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