By Barbara Lehrer
Real Talk
Barbara Lehrer
Every transaction to buy or sell a property requires hundreds of man hours. Know-how and diligence are top priorities when working with huge funds, such as those in home sales. Each deal begins with a buyer broker contract or a listing agreement, and many times includes both. These contractual obligations between client and agent start immediately and result in exclusive commitments to successfully complete a real estate transaction. When selling your home or purchasing a property, you do not have to use the same agent on both contracts, but both these separate commitments are legally binding.
From price points to inspections, through to loans and on to emptying the house, your agent knows his or her place and strives to complete the process as your listing agent when you are selling.
When buying a property, especially if you are new at searching, the leverage you receive by working directly with the contracted listing agent of your choice is valuable. As you search for the right property, identifying the pros and cons above emotional attraction, you benefit from realistic input from your agent. As you go under contract, that agent can assure the prospective buyer that you are secure and stable in your sale.
Researching the comparative sales carefully can make the difference between a great or a complicated contingency in the process. From location and topography to a septic education or the loan process for your individual needs, the help list goes on. Any cost for repairs or environmental issues can, without good representation, result in unnecessary expenses in the long run. All the deadlines, your legal rights and the suggested upgrades can be overwhelming; and each step, in order, should be orchestrated by your representative.
Protocol must be explained to the client up front each day. The process can be lengthy, and it is not the job of an attorney to follow up on each contingency.
As your representative when searching for that special home, it is the obligation of your agent to contact prospective properties that you may find. Your position as the client is just to pick up the phone and call your agent and let him or her do the research. Is it new? Not on the multiple listing service yet? For sale by an owner? Each of these questions will assist the agent in asking more questions.
Getting you in the door is your desire, but you should not call an agent directly when you are in contract. If you do call, the listing agent should ask you immediately if you are represented. Professionals would rather speak to other professionals to explain the situation. At that point, especially with a private sale, a market evaluation from your agent is imperative to be sure the price is right. For example, some homeowners overprice their properties when trying to sell on their own. But price is determined by most recent sales.
It is important that the client start out on the right foot. If you want a home, be honest with the listing agent, tell them you are represented, you have interest and your agent will call them directly. A buyer broker contract has many commitments to it, but your agent may also represent more than one client on the same desired property. They may have two buyers who are looking for a colonial in the same price range, in the same town at the same time, but always remaining private.
An active agent who knows the inventory is a valuable asset to any buyer, first time out or not. Real estate has become a tight ship: there is a form for everything and your protection as a buyer has never been better. Just think: for years, realtors got their license to bring the best buyer and price to the sellers. Back then, we all just represented sellers. But the industry revised this process, and now it is time to put your trust in the buyer agent. This contract is just as important as the listing contract is.
If you need more information on these issues, email Barbara.Lehrer@cbmoves.com.