WHAT DOES A REALTOR DO?

 

It bears repeating that a home is most people’s largest single investment. With that in mind, the primary purpose of a Realtor is to provide you with PEACE-OF-MIND in the selling of your home. The most important quality you are looking for in a real estate agent is TRUST. You want to be able to TRUST your agent to work hard on your behalf, to be very knowledgeable about the market, to listen carefully to your needs, to provide you with information and creative alternatives, and to always keep their promises. You can rest assured we take this commitment seriously!  The following is our pledge to you:

 

  • Be a good listener and understand your real estate needs

  • Explain and be able to answer questions to your satisfaction while reviewing the forms that will need to be signed as they review with you the listing agreement contract.

  • Represent you in all negotiations

  • Problem-solve and coordinate all parties to the transaction as you work toward a successful close in a timely manner.

 

HOW DOES THE REALTOR GET PAID

 

As a consumer in the real estate market, you will benefit from the services of an experienced Realtor throughout the selling process, and it’s important that you understand how real estate agents are paid. Basically, you, as the seller, will pay a commission to the listing broker, not the specific agent, based on a percentage of the selling price. The listing broker then splits this commission with both the buyer’s broker and their respective agents.

 

Did You Know……

Sales Associates are self-employed, and receive no salary or benefits. They get no paid vacation time, insurance, company cars or expense accounts from the firm they work with.

Sales associates are only paid for results-----if and when they successfully complete a property transaction.

As independent contractors, sales associates have ongoing out-of-pocket expenses similar to those of any small business such as: advertising and marketing of their services, automobile expenses, MLS access fees, postage and courier fees, national, state and local Realtor Association dues, long distance, cellular and/or paging services, Internet fees, business cards and other office supplies, business insurance and self-employment tax, continuing education course fees, and, many pay monthly office rent.

 

AGENCY RELATIONSHIPS

 

Some state laws require that early in any real estate relationship, real estate brokers or salespersons discuss with consumers what type of agency representation or relationship they desire. An agency relationship is based on one person representing the interests of another person, and Real Estate Sales Associates, who are licensed by the State with a broker, represent a person for the sale or purchase of a property.

 

The type of relationship formed between the Sales Associate and the client is called a fiduciary relationship. A fiduciary relationship is one based on TRUST, as evidenced by the seven duties owed to the client: Loyalty, Diligence, Confidentiality, Reasonable Care, Obedience, Disclosure, and Accounting. The source of compensation does not determine agency, in that compensation can be paid by the buyer, seller, both, or neither (subject to restrictions under applicable state law).

 

 

The fiduciary duties mentioned above are listed below and have the following meanings:

Loyalty - broker/salesperson will act only in client(s)' best interest.

Obedience - broker/salesperson will carry out all client(s)' lawful instructions. 

Disclosure - broker/salesperson will disclose to client(s) all material facts of which broker/salesperson has knowledge which might reasonably affect the client's use and enjoyment of the property. 

Confidentiality - broker/salesperson will keep client(s)' confidences unless required by law to disclose specific information (such as disclosure of material facts to Buyers). 

Reasonable Care - broker/salesperson will use reasonable care in performing duties as an agent. 

Accounting - broker/salesperson will account to client(s) for all client(s)' money and property received as agent.

If Seller(s) decide(s) not to agree to a dual agency relationship, Seller(s) may give up the opportunity to sell the property to Buyers represented by the broker/salesperson. If Buyer(s) decide(s) not to agree to a dual agency relationship, Buyer(s) may give up the opportunity to purchase properties listed by the broker.

 

 

 

You should feel free to discuss these agency representation options with your agent since it is important that you have a thorough understanding of every aspect of the real estate transaction.