Archive for the ‘Working With Real Estate Brokers’ Category

How Sellers Can Work With Buyer’s Agents

Monday, March 1st, 2010

If you’re selling your home on your own, you may be wondering how sellers can work with buyer’s agents. Many prospective buyers have aligned themselves with agents and establishing a “buyer agent friendly” mindset will help bring more potential buyers to your home.

How To Work With Buyer’s Agents Without The Stress

Nobody works for free. While you may be selling your own home to save money on commissions, you need to understand that a buyer’s agent expects to be paid for her efforts. If you’re not willing to pay the commission, the buyer will have to bear that burden. In a buyer’s housing market, how many buyers will make that concession? The good news is that a buyer’s agent will often be willing to take a 3% commission rather than the traditional 6% if the buyer’s agent is the only agent involved in the sale.

Going it alone. Besides reducing the pool of available buyers, working only with agent-less buyers may not save you anything in the long run. A buyer with the least bit of experience will probably insist on a discount that would be equal to the commission value. (more…)

Everything You Should Know About Listing Agreements With Real Estate Brokers

Monday, March 1st, 2010

If you decide to sell your home with a real estate broker, then understanding listing agreements should take a high priority. Listing agreements are legally binding documents between you (the home seller) and a real estate broker. Not understanding the terms of a listing agreement can lead to hard feelings (or legal proceedings!) if the sale goes poorly.

Types Of Listing Agreements Real Estate Brokers May Offer

Open season. A “non-exclusive” or “open” listing agreement is defined as one where the seller may enter into similar listing agreements with other real estate brokers or even sell the house on their own. The real estate broker only earns a commission is she is responsible for finding the buyer. Although open listing agreements aren’t popular with full service real estate brokers, they do give the seller quite a bit of flexibility. On the downside, your real estate broker may not work as hard at selling your home it they suspect you or a competitor might keep them from earning a commission.

Just you and me. An exclusive agency listing allows the seller to keep the right to sell the house on her own, but makes agent activity exclusive to the real estate broker who signs the agreement. Your real estate broker may work with outside brokers to complete a sale of your home (splitting the commission), but you agree to work with your broker exclusively. (more…)

Real Estate Brokerages Explained

Friday, February 26th, 2010

If you’re a first time home seller, you’re probably wondering about real estate brokerages. Real estate sales are among the most complicated financial transactions normal people face. Real estate brokerages provide a source of experience and information for home buyers and sellers, but at the same time, can be expensive relative to their contribution, and conflicted in how they represent you.

How Real Estate Brokerages Work

What is a brokerage? Typically (although laws vary by state and country), a brokerage is a collection of real estate agents, managed by a licensed broker, who provide buying and selling services to real estate clients. In most states in the US, a customer is considered a client of the agency. Once an agreement has been signed, the brokerage (represented by an individual agent) has a fiduciary relationship with the client. A fiduciary relationship means the brokerage (and agent) must act in the best interest of the client and provide full confidentiality during and after the transaction.

Training and experience. Real estate brokerages employ agents who must undergo extensive training—from 40 to 90 hours of classes, depending on local requirements. Agents must also pass a state exam that tests the his or her knowledge of real estate law and transactions. The broker who owns and manages the brokerage must also have years of industry experience and pass his own set of classes and exams. (more…)