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Be Wary About the Listing Agent Traditionally, buyers would stop at a house for sale and be shown the property by an agent sitting there. Today, most buyers will call the phone number on the sign out in front of the home. The problem with both methods is that the agent they contact is usually the listing agent. And in most cases, he or she represents the seller.
Be careful about what you say to a listing agent. A listing agent's role is to find a buyer, and to get as high a price and as good terms as possible for the seller. He or she is required to inform the seller of any facts that may influence the seller's decision about whether to accept an offer or not.
For example, if you mention to the listing agent how much mortgage you are qualified for, don't be surprised if the seller knows too.
Always keep in mind that you want the lowest price and the best terms. If an agent is not directly working for you, they could very well be working against you.
What an agent can do for clients when acting as a dual agent:
*Treat all clients honestly
*Provide information about the property to the buyer
*Disclose all latent material defects in the property that are known to the agent
*Disclose financial qualification of the buyer to the seller
*Explain real estate terms
*Help the buyer or tenant to arrange for property inspections
*Explain closings costs and procedures
*Help the buyer compare financing alternatives
*Provide information about comparable properties that have sold so both clients may make educated decisions on what price to accept or offer.
What an agent CANNOT disclose to clients when acting as a dual agent:
*Confidential information that the agent may know about the clients, without that client's permission. No other agent will be able to reveal the other party's confidential information to you.
*The price the seller will take, other than the listing price, without permission from the seller. No other agent will be able to reveal this information to you.
*The price the buyer is willing to pay without permission of the buyer. No other agent will be able to reveal this information to you.
*A recommended or suggested price the buyer should offer.
*A recommended or suggested price the seller should counter with or accept.
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