Wednesday, November 01, 2006
NJHomeBuyer
What is a 'DUAL AGENT": Why should you care?
This should be well known by now it is so simple but the Real Estate industry, in general, doesn't want you to know.
It is this:
A homeowner wants to sell their home.
They contact a listing company and sign a"listing agreement" with them.
The listing agreement obligates the listing company to market the home and obtain the listing price or the best price possible from a buyer.
The listing company puts a sign in front of the house and puts it on the mls and internet and markets the home.
A potential buyer come along having seen the sign or otherwise finding the house is for sale.
The buyer calls the number provided on the marketing material from the listing company and indicates they are interested and want to see it.
----Here is where the buyer often doesn't get what is going on----------
An agent from the listing company shows them the home. (generally goes with them and looks around -almost never will look for conditions problems that are not obvious). REMEMBER: the listing company's job is to market and sell the house at the listing price.
The buyer likes the house and wants it. How much can they get the seller to reduce the price? The listing company (and their agents) are working for the seller and so will not tell them that..but may give them some information about what other homes in the area have sold for.
The listing company is not going to suggest that you make a low initial offer ... they have a contract with the seller.
You make an offer and it is accepted.
You arrange for a home inspection. The inspector (hopefully a qualified inspector), finds a number of issues.
You get a copy of the report but don't understand all of it or what typically you might get the seller to correct or give you a credit for.
Again, the listing company is not going to suggest that you be aggressive in asking for seller concessions (they are working for the seller too).
The listing company is a "DUAL AGENT". They are working for 2 parties in a transaction that have conflicting interests.
All real estate agents in NJ are obligated to explain how they are working with you before you get into a discussion with them about your motivations or show them homes. The state of NJ even came up with a form called a "Consumer Information Statement", that they agent is supposed to give to you, explain and tell you if their is potential for them to be a dual agent. Even those who do may downplay the effect of dual agency on their ability to help you negotiate a lower price or other terms.
NJ has tried to ensure that NJHomeBuyer's are informed and understand the impact that your agent's ability to negotiate on your behalf is directly tied to whether or not their company listed the home. The typical NJHomeBuyer is often not given the information they need to understand the effect using the listing company to purchase their home can have on their final purchase price and terms. That is why NJHomeBuyer.com Realty exists.
NJHomeBuyer.com Realty never lists homes and so avoids the potential for dual agency that companies that list cannot afford.
Paul Howard, Broker
NJHomeBuyer.com Realty 856-488-8444
This should be well known by now it is so simple but the Real Estate industry, in general, doesn't want you to know.
It is this:
A homeowner wants to sell their home.
They contact a listing company and sign a"listing agreement" with them.
The listing agreement obligates the listing company to market the home and obtain the listing price or the best price possible from a buyer.
The listing company puts a sign in front of the house and puts it on the mls and internet and markets the home.
A potential buyer come along having seen the sign or otherwise finding the house is for sale.
The buyer calls the number provided on the marketing material from the listing company and indicates they are interested and want to see it.
----Here is where the buyer often doesn't get what is going on----------
An agent from the listing company shows them the home. (generally goes with them and looks around -almost never will look for conditions problems that are not obvious). REMEMBER: the listing company's job is to market and sell the house at the listing price.
The buyer likes the house and wants it. How much can they get the seller to reduce the price? The listing company (and their agents) are working for the seller and so will not tell them that..but may give them some information about what other homes in the area have sold for.
The listing company is not going to suggest that you make a low initial offer ... they have a contract with the seller.
You make an offer and it is accepted.
You arrange for a home inspection. The inspector (hopefully a qualified inspector), finds a number of issues.
You get a copy of the report but don't understand all of it or what typically you might get the seller to correct or give you a credit for.
Again, the listing company is not going to suggest that you be aggressive in asking for seller concessions (they are working for the seller too).
The listing company is a "DUAL AGENT". They are working for 2 parties in a transaction that have conflicting interests.
All real estate agents in NJ are obligated to explain how they are working with you before you get into a discussion with them about your motivations or show them homes. The state of NJ even came up with a form called a "Consumer Information Statement", that they agent is supposed to give to you, explain and tell you if their is potential for them to be a dual agent. Even those who do may downplay the effect of dual agency on their ability to help you negotiate a lower price or other terms.
NJ has tried to ensure that NJHomeBuyer's are informed and understand the impact that your agent's ability to negotiate on your behalf is directly tied to whether or not their company listed the home. The typical NJHomeBuyer is often not given the information they need to understand the effect using the listing company to purchase their home can have on their final purchase price and terms. That is why NJHomeBuyer.com Realty exists.
NJHomeBuyer.com Realty never lists homes and so avoids the potential for dual agency that companies that list cannot afford.
Paul Howard, Broker
NJHomeBuyer.com Realty 856-488-8444
