As a Licensed Salesperson in New York State, I am constantly
coming into individuals with varying degrees of interest in the house
purchasing process, from those actively seeking a new home (or first
home) to those who are merely curious. This article will address the
needs of those who are seriously interested in purchasing a home.
Firstly, a buyer should realize that it is his choice and option as to what type of agent to deal with. One type of agent is known as a Seller's Agent. This type of agent has been "enlisted" by the seller of a house to represent his interests in the sales process. By definition, a seller's agent owes the seller the following fiduciary duties: undivided loyalty; confidentiality (non disclosure of any personal information regarding the seller); full disclosure; of course, reasonable care; obedience (to the client's- i.e. the seller's legal wishes and needs); etc. While a seller's agent must still be honest, fair and act in good faith, and disclose any material issue that affect the property's desirability, this type of agent's primary allegiance is to the seller. This type of agent may also at times be referred to as a Listing Agent.
A Buyer's Agent is "hired" by the buyer to represent his interests. This type of agent actively negotiates in the best interests of the buyer. He has the same types of obligations and allegiances to the buyer as the seller's agent has to the seller. While a seller's agent represents the seller and his interests primarily, the buyers agent has an allegiance to the buyer, and does not represent the seller.
A Broker's Agent is one that cooperates either with the listing agent or the buyer's agent, while not working for the same firm as either the listing agent or buyer's agent. This type of agent does not have an allegiance or direct relationship to either the buyer or seller. Because of this and the fact that the buyer or seller do not give instructions directly, this agency situation does not involve any type of "vicarious liability" (direct responsibility for actions of another), and therefore either the buyer's agent or listing agent will have the responsibility regarding liability for this agency type.
The last type is a Dual Agent, who is permitted to represent both the buyer and the seller, as long as both give written and informed consent. Obviously, this type of agent will have limited fiduciary duties compared to other forms of agency. Dual agents must fully explain any possible conflicts that this might present, and the steps and care that will be taken. Some Brokers, in order to avoid the appearance of conflict, use a situation known as Dual Agents with Designated Sales Agents, with a separate agent handling the buying and selling aspects and interests.
Buyers must also begin their search by getting pre-qualified for a mortgage for a specific amount, so as to know what price range they should be searching in. While some buyers appear hesitant to fully confide their information to their Realtor, if that is a concern, then a Buyer's Agent agreement and arrangement is the way to go. Truly interested buyers should ask their agent to provide them with "comps" of houses that have recently sold in the area, as well as on the market presently, so that any offer made will be realistic. While it is acceptable to give a significantly lower than asking price for a house that appears overpriced based on comparable houses, doing this will fairly priced houses will generally result in a "souring" effect, if the buyer is actually truly interested in a particular property.
Buyers should understand that a Seller, once he receives an offer in writing, can either accept the offer, reject it, or propose a counter- offer. Then the procedure begins again. Buyers should consult their professional agent for suggestions as to the best way to proceed.
Firstly, a buyer should realize that it is his choice and option as to what type of agent to deal with. One type of agent is known as a Seller's Agent. This type of agent has been "enlisted" by the seller of a house to represent his interests in the sales process. By definition, a seller's agent owes the seller the following fiduciary duties: undivided loyalty; confidentiality (non disclosure of any personal information regarding the seller); full disclosure; of course, reasonable care; obedience (to the client's- i.e. the seller's legal wishes and needs); etc. While a seller's agent must still be honest, fair and act in good faith, and disclose any material issue that affect the property's desirability, this type of agent's primary allegiance is to the seller. This type of agent may also at times be referred to as a Listing Agent.
A Buyer's Agent is "hired" by the buyer to represent his interests. This type of agent actively negotiates in the best interests of the buyer. He has the same types of obligations and allegiances to the buyer as the seller's agent has to the seller. While a seller's agent represents the seller and his interests primarily, the buyers agent has an allegiance to the buyer, and does not represent the seller.
A Broker's Agent is one that cooperates either with the listing agent or the buyer's agent, while not working for the same firm as either the listing agent or buyer's agent. This type of agent does not have an allegiance or direct relationship to either the buyer or seller. Because of this and the fact that the buyer or seller do not give instructions directly, this agency situation does not involve any type of "vicarious liability" (direct responsibility for actions of another), and therefore either the buyer's agent or listing agent will have the responsibility regarding liability for this agency type.
The last type is a Dual Agent, who is permitted to represent both the buyer and the seller, as long as both give written and informed consent. Obviously, this type of agent will have limited fiduciary duties compared to other forms of agency. Dual agents must fully explain any possible conflicts that this might present, and the steps and care that will be taken. Some Brokers, in order to avoid the appearance of conflict, use a situation known as Dual Agents with Designated Sales Agents, with a separate agent handling the buying and selling aspects and interests.
Buyers must also begin their search by getting pre-qualified for a mortgage for a specific amount, so as to know what price range they should be searching in. While some buyers appear hesitant to fully confide their information to their Realtor, if that is a concern, then a Buyer's Agent agreement and arrangement is the way to go. Truly interested buyers should ask their agent to provide them with "comps" of houses that have recently sold in the area, as well as on the market presently, so that any offer made will be realistic. While it is acceptable to give a significantly lower than asking price for a house that appears overpriced based on comparable houses, doing this will fairly priced houses will generally result in a "souring" effect, if the buyer is actually truly interested in a particular property.
Buyers should understand that a Seller, once he receives an offer in writing, can either accept the offer, reject it, or propose a counter- offer. Then the procedure begins again. Buyers should consult their professional agent for suggestions as to the best way to proceed.
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