Who's on first? Buyer Agent, Seller Agent, Dual Agent?
Anyone who has dealt with a New Hampshire real estate agent in the past two years has had to endure this complicated and confusing subject. The issue is about who represents who and how that effects you as the buyer or seller of real estate.
First a little history: (Seller agency) Years ago literally every real estate agent represented the seller of the property (Seller agency). That system worked for decades and years ago when a handshake was all you really needed to seal a deal, it worked quite well. Unfortunately, a handshake doesn't represent what it used to and buying and selling real estate has become much more complicated. As a result it's more important than ever that buyers and sellers look for the most qualified real estate agent they can find to represent them.
What started this change was buyers of real estate going into real estate offices, meeting agents, viewing properties, getting to know each other, and setting up a relationships and/or friendships that could last years before a sale actually happens. The problem was that after the buyers bought their new home and perhaps had a problem, they discovered that this agent who they thought was representing their interests was actually representing the seller's. Moreover, they were shocked to discover that confidential information they gave the agent was shared with the seller thus costing them money and/or other considerations. This started the demand for Buyer Brokerage.
What is Buyer Brokerage? In a nutshell, it is best described as a real estate agent empowered by a buyer of real estate to do everything in his/her power to assist a buyer in finding the property that fits their needs at a price that makes sense. This is a fiduciary relationship governed by the laws of agency, which state that the agent must provide the following for his/her client. A brief description of these duties is below:
Care: The broker must exercise a reasonable degree of care and skill while transacting the business of the client.
Obedience: The broker is at all time obligated to act in good faith and in conformity with the client's instructions and authority.
Accounting: The broker must be able to report the status of all funds received from or on behalf of the client.
Loyalty: The broker owes the client 100% loyalty and must always place the principal's interests above those of the other persons with whom the broker deals.
Disclosure: It is the broker's duty to keep the principal informed at all times of all facts or information the broker obtains that could effect the transaction. (The law of agency also applies to brokers representing sellers!) Not all buyer agents are equal and it is important to select one who can provide you with the most services and information possible so that you know everything there is to know about a property and more importantly where to turn when you have problems with the property. Not all real estate agents are created equal and just because someone has a license does not mean he knows anything other than enough information to pass a real estate test. Look for a company that is well grounded in its community, has expertise in the Planning, Zoning and Permitting departments of the town, knows the construction trades and the people involved, and most importantly, look for an office where you feel like a valued client not just one salesperson's fleeting sales commission.
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