Table of Contents
1. Real Estate: Buyer's Agent, Seller's Agent & Dual Agent (defined and explained)
2. 10 Reasons Why You Should Use a Real Estate Agent
3. The Key to Real Estate Sales Success
4. R E Agents-Dominate Your REO & Foreclosure Market
5. Learn The Secrets To Doing BPOs & Listing Bank Owned Foreclosure Properties
6. Looking To Become A Successful Real Estate Agent?
1. Real Estate: Buyer's Agent, Seller's Agent & Dual Agent (defined and explained)
By Mr Jody Hudson
There is a relatively new and not always well understood practice in Real Estate sales; it is called Buyer Agency or Buyer's Agent. Until recently Realtors and agents usually represented the seller, in opposition to the buyer, during the real estate transaction. Even the real estate agent who drove you from home to home was not truly working on your behalf. By law, the agent was required to work on the seller's side in order to get the highest price and the best terms for the seller -- Period! Some agents still work this way.
In the last few years, first the law and now the practice of representation has changed. We have an entirely different set of options and agreements when we are buying real estate. These options were previously only available and utilized by large companies or wealthy individuals. In the past, the buyer would get a buyer's representative by paying a fee up front and usually by the hour, until the transaction was complete.
Twenty five years ago, as a personal agent for wealthy clients and companies, I charged and worked an average of 20 hours a week for $30 per hour, plus expenses, plus 10% of the transaction (or when I was the buyer's agent, a $2,000 retainer fee to start with and then $30 per hour and 10% of the amount below the listed price that I was able to obtain for my buyer. If there was financing involved I also was paid to find and obtain the best financing).
That has changed dramatically. As a buyer's agent, a signature on a buyer's agent contract from my buyer begins the transaction. Usually the same original commission fee that would have been paid by the seller is split and half goes to pay the buyer's agent. In some cases the selling agent does not set up any fee to the buyers agent, or a very reduced fee, such as those agencies that advertise 2% or 3% or 4% commissions to the sellers, etc. In that case the Buyer just picks up the missing commission and at settlement another 4% or 5% comes out of the transaction and goes to us as Buyer's Agent. In other words there is a guarantee from us that we are working ONLY for you the buyer and in exchange you guarantee us a commission of 5% - which is usually already taken care of, or at least part of it, in the seller's commission.
I can draw this division of fees out for you on paper if need be when we meet the first time. Bottom line; you don't pay any more and you get the absolute best representation.
The buyer's agency arrangement begins with the initial interview, continues through an initial selection of properties to investigate and view and then to contract negotiations. This culminates with the final settlement and transfer of funds for property. The buyer may choose to have an agent specifically committed to representing his best interests.
The great part for the buyer is that he/she gets the benefit of decades of experience and professional knowledge, all of our connections and reputation with those connections, and pays nothing until final close of transaction. Where else can you get the best possible professional service and pay nothing until it's complete and satisfactory. Will your doctor, lawyer, accountant, mason or carpenter do that... NO. We do, if you contract with us first. Otherwise we represent the seller at your expense! This is true of all Realtors by law. Which would you like?
Recently real estate laws in virtually every state are being rewritten to allow and suggest that the buyer have his own specific representative. If you are the buyer and have a buyer's agent, your agent will try to get you the best deal possible, even if that is NOT in the best interest of the seller.
Legally: "Buyer's Agency" is a relationship where the real estate agent is working FOR you with fiduciary responsibility (financial and legal responsibility). The agent is then legally bound to only the buyer and owes his entire loyalty and allegiance to the buyer alone.
In the past, and even most of the time today, all real estate agents and brokers represent the seller alone; to get the highest price for the seller. In fact seller's agents MAY NOT disclose fully all that they know about a property to the buyer as they seek the highest price. The relationship of a broker and agent is established in writing with the seller when the property is listed for sale in the "Listing Agreement".
In Delaware we are required to give each person we work with; buyer or seller; a written explanation regarding agency status. We have professionally written brochures that explain the "seller's agency" and it's opposite "buyer's agency". This agency disclosure must be explained, in writing, at the first significant contact of the agent with the buyer or seller.
Agents in our office talk with a great number of long-distance buyers over the phone. We must, when we finally meet in person, disclose and determine which position we will take with the person we are speaking with. Some agents work mostly as seller's agents; some work mostly as buyer's agents and some work as a dual agent (where we act as full representative to both buyer and seller). Regardless of the role the agent takes -- it should be fully and completely known by all agents, buyers and sellers involved -- and it should be in writing.
Let us now put this forward again:
Seller's Agent: has the full and complete and sole duty to obtain the best deal for the seller. The seller's agent is ONLY allowed to give the buyer material facts about the property. It is customary for a cooperating broker and agent to be a subagent to the seller's agency established by the brokerage that has the written contract with the seller to sell the property.
Buyer's Agent: has the full, complete and sole duty to obtain the best deal for the buyer. The buyer's agent may convey any and all information obtained in any fashion, including in depth investigations about the seller or the property.
Dual Agent: has to be legally and financially loyal to both parties. Dual agency occurs when a real estate agency is contracted to sell a home. That means they have the listing, and an agent from that same brokerage, working as a buyer's representative, shows that listing. Dual Agency must be disclosed and agreed to in writing by all parties. Some people feel that Dual Agency is potentially a conflict of interests. It can be unless the agent is fully honest to all parties and they are fully aware of and in agreement with that relationship. Here, the entire purpose of the dual agent is to get the best possible deal, in all it's components, for both the buyer and the seller.
There are, in general, two major personalities of buyer's agents. First is the agent who only and always represents buyers. The other is the agent who takes each transaction and each customer into account before making that decision. An agent who usually works as a buyer's agent, for instance, may NOT want to represent a particular buyer as that buyer's agent for one reason or another. The reason is usually one of some personality difference. As I put it, when speaking with a buyer whom I wish to represent "I will be your gladiator. I will do battle on your behalf, and at the expense of and against the interests of, the seller and the seller's agent."
The buyer's agent must still be honest, but he need not be fair. For instance, if the buyer's agent is able to find out that the seller is in big financial or personal trouble and that the seller has a small mortgage on the property or that there is some impending deadline for selling the property, then the buyer's agent will tell the buyer. Together they will use that information to get a great deal for the buyer at the seller's expense... it that is possible.
If I were a buyer, I would not even consider doing a real estate transaction without a buyer's agent to act on my behalf. I suggest that you are wise to do the same. If there are detailed and extensive negotiations that need to be done; such as unique and difficult terms that must be negotiated then (being the buyer) I'd ask that the buyer and the seller agree to have me as a dual agent. Whatever your choice, it should be in writing with your agent and must be known to all parties involved.
Copyright © 2001-2004 by www.JodyHudson.com
Source for this article is: http://www.kate-jody.com/essays/buyersagent.html
Article Source: http://EzineArticles.com/?expert=Mr_Jody_Hudson
2. 10 Reasons Why You Should Use a Real Estate Agent
By Elizabeth Mclachlan
The Internet has become such a big resource that consumers often feel that they don't need the expertise of an agent. However, there is a reason why 80% of buyers and seller still turn to estate agents when buying or selling a house - in fact, here are 10 reasons why you should consider using a real estate agent:
1. You Can Benefits From an Agent's Experience and Education
Real estate agents know the market, was trained to assist clients in selling and buying homes and know the procedures you need to follow. You will be a fool not to use their expertise.
2. An Agent Have Good Negotiating Skills
Negotiating is part of an agent's job description and they know how to make a case for their clients. There skills ensure that you, the client, gets the best deal.
3. An Agent Can Handle All the Paperwork
The endless paper work can be time-consuming not to mention confusing. Agents are trained to handle all paper work and assist you throughout the process. They also know the legal aspects of a contract. This saves you a lot of time to concentrate on the more important things.
4. An Agent Can Assist You With Price Guidance
Agents have knowledge of the market and will help you establish how much home you can afford as well as how much to sell you property for. Here you can once again trust their experience to guide you when making a decision.
5. An Agent Has Knowledge of the Neighborhood
Agents can answer all your questions regarding the neighborhood you want to buy in, such as the quality of the schools, the noise levels etc. They also know the prices that homes in the area sell for.
6. Advertising a Property is Expensive
If you decide on a DIY sale, be prepared to cover the advertising cost. When you work with an agent you are not only relying on their name to advertise your property but you are also using all their resources including For Sale/On Show banners, listings in newspapers and on the Internet.
7. Agents Sell Homes Faster
It has been proven that when you use an agent you will sell you home faster - and we all know that time is money in this industry.
8. An Agent Has an Objective Opinion
Having an agent around when you view a property means that you will always have an objective opinion. Agents see things differently and can help you identify the strengths and weaknesses of a property. They also know exactly what to look for.
9. An Agent Can Make Recommendations
Agents know the best lenders, home inspectors and other references that you might need when you buy or sell a house.
10. An Agent Has Access to Additional Information
Agents have loads of information like how long a property has been on the market, the neighborhood and school system, the home's best features etc. This can come in handy when you have difficulty choosing between different properties.
Considering the scenic landscape that South Africa offers, you might want to have a look at property for sale in South Africa especially Knysna property and Cape Town property.
Article Source: http://EzineArticles.com/?expert=Elizabeth_Mclachlan
3. The Key to Real Estate Sales Success
By Dirk Zeller Platinum Quality Author
One of the first steps toward success is to know what you want out of your real estate career, and "financial independence" is not a specific-enough answer.
I've been in real estate, either in direct sales or teaching, speaking, training, writing, or coaching people, for nearly 20 years. I've met tens of thousands of agents and nearly every one started selling real estate with the same goal of financial independence. Countless times I've asked the same question: "Tell me, how do you define financial independence?" What I usually hear in response is some variation of the answer, "So I don't have to worry about money anymore."
The key to eliminating money worries is to establish a financial goal - an actual number ¬¬- that you need to accumulate in order to achieve the quality of life you want to enjoy. Financial independence boils down to a number. Set that number in your mind and then launch your career with the intention to achieve your goal by a specific date.
With your financial goal in mind, you'll have a clarity that will see you through the valleys and hard work that lie ahead of you. When you have to endure the rejection, competition, disloyal customers, and challenges that are inevitable along the way, your knowledge about the wealth you're working to achieve will help you weather the storms of the business.
Pathways agents follow in search of success
Agents follow one of these four basic approaches in the quest to achieve real estate success:
1. Become a workaholic. More than 80% of agents who generate a reasonable income achieve their success by turning their careers into a seven-day-a-week, 24-hour-a-day job. They answer business phone calls day and night, they make themselves constantly available to prospects and clients, and they work on-demand with no restraints.
2. Buy clients. The second-most frequent pathway to success is to buy business through massive marketing campaigns. Some agents buy or "brand" their way to the top level of real estate by investing in billboards and bus benches, thousands of direct mailers, expensive ad schedules, and all kinds of promotions. Others buy their way to the top by discounting their commissions. By offering themselves at the lowest prices, these agents eliminate the need to emphasize their skills, abilities, and expertise.
3. Take the shady road. Another avenue to real estate financial success is to abandon ethics and just go for the deal and the resulting money. Unlike the vast majority of agents who advise and advocate for their clients, agents who take this route choose not to be bound by the ethics and code of conduct of the National Association of REALTORS. They put their own needs first and their clients' best interests in distant second place. Fortunately, these agents are few and far between.
4. Build a professional services business. The fourth and best pathway is to create a well-rounded, professional services business not unlike that of a doctor, dentist, attorney, or accountant. Fewer than 5% of all agents follow this route, yet the ones that do are the ones who earn the largest sums of money ¬- some exceeding $1 million annually while also having quality lives and time for friends and family. Plus, when they're ready to bow out of the industry, they have a business asset they can sell to another agent. This is the route I urge you to follow.
Dirk Zeller is an Agent, an Investor, and the President & CEO of Real Estate Champions. His company trains more than 250,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. He's the widely published author of Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Agent Team, Telephone Sales for Dummies®, and over 300 articles in print.
Real Estate Champions is a premier coaching company. Training covers a wide spectrum from new agents, to seasoned, as well as those interested in real estate marketing or real estate investing.
You can get more information at Real Estate Coaching, Free Resources for Realtors
Article Source: http://EzineArticles.com/?expert=Dirk_Zeller
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