What to expect from DICK PALMER!
|It is difficult, if not impossible, to be all things to all people.
Unfortunately, that is precisely what is expected of Realtors; they are asked to meet the
needs if all parties involved in a transaction.
To understand the functional role of Realtors, some industry-specific definitions are necessary. Agency defines any relationship in which one party (the Realtor) represents another (the Buyer/Seller). In Real Estate, this relationship is defined in writing.
Realtors can represent a seller in a transaction or a buyer (known as Buyers Brokerage). State laws differ, but in many cases Realtors may engage in Dual Agency. In this case, the Realtor represents both parties (buyer and seller) at the same time. In most situations, all parties must be advised to the Dual Agency relationship.
The creation of an agency relationship also establishes a fiduciary relationship. This simply means that the relationship requires the parties to exercise good faith and place trust and confidence in each other.
Once an agency relationship is established, the Realtor assumes certain responsibilities: personal performance, obedience, loyalty, accountability, notice and due care.
Personal performance dictates that real estate agents must perform those functions that protect the interests of their client. In addition to personal performance, Realtors are required to obey their client's instructions as long as those instructions are legal and ethical. A good example of this would be to honor the request that a sign not be placed in the yard or that the property not be shown between the hours of three o'clock and five o'clock.
Loyalty is a key element of representation. It goes hand-in-hand with personal performance. If an agent is asked, "Do you think the owner will take less than the selling price?", it would be a breach of loyalty to respond, "Yes, I am sure they would because they are so eager to sell."
There are very strict laws surrounding obligations of fiscal accountability. Earnest money must not be commingled with other funds and Realtors must be fully accountable at all times for funds placed in their stewardship.
Notice and due care follow each other in most transactions.
|By Definition, due care requires that
agents exercise the degree of care in all aspects of the business transaction that any
prudent business person would. This carries over to the subject of notice.
Failure to communicate with a client on a timely basis regarding issues that could affect
the transaction constitutes a violation of the obligation of notice.
Seller (or listing) agents perform numerous activities on behalf of their clients. Agents assist sellers in setting a realistic asking price based on researched property sale comparables; developing and implementing an effective marketing strategy; offering suggestions regarding ways to make the property more attractive to potential buyers; and review financing or sale inducements that may help effect a quick sale.
When purchase offers are received they review the contract with their seller, noting the merits and shortfalls of the proposal. They assist in drafting counteroffers, and, ultimately review the final contract to ensure that their clients' interests are protected. Listing agents traditionally attend the transaction closing.
Bound by similar professional obligations to their clients, Buyers Agents help clients prequalify for a loan. Prequalifying saves valuable time and disappointment when it is later discovered that the dream home is outside buyer's financial reach. Realtors representing buyers scour the community identifying properties that meet the needs of their clients. They spend countless hours showing these homes, pointing the negative and positive features, and how the property fits in the local real estate market.
When a home is finally settled upon, a Buyers Agent assists in drafting the purchase offer and all counteroffers. When the transaction goes to the closing table, the Realtor attends the closing to ensure their client's interests are well represented.
It is important to note that Realtors do not practice law, and it is always advisable for buyers and sellers to have their personal attorney review a contract prior to signing.
Laws, liability and the potential of litigation have made the sale or purchase of property a minefield for the uninformed.
Realtors can provide service in a variety of areas to assist purchasers and sellers have a positive real estate transaction.
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