Bend Oregon Real Estate

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Greg Broderick, Broker
Bend, Oregon 97701
1.800.689.2363
greg@BendRealEstate.com

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Bend Oregon Real Estate

Who is representing you in the single most expensive investment you will probably make in this lifetime?

[The following article was taken, in part - from "Real Estate Matters, Tribune Media Services, Inc.", 2007]

Agency disclosure is a mouthful -- tough to say, and tougher still to figure out who represents whom in a real estate transaction.

Seller brokers, also known as listing brokers or conventional brokers, typically represent homeowners. They sign a listing agreement (which is negotiable) with the seller outlining the details of their relationship. In essence, seller brokers generally agree to be the sole agent for a property. They agree to do their best to sell a property and if they do sell it, they receive a commission (also negotiable).

Buyer's agents represent the buyer. They typically offer an agency disclosure agreement stating that they owe their fiduciary responsibility to the buyer, even if the seller pays the commission.

This sounds simple enough, but then there are other folks who muddy the waters. Dual agents represent both buyer and seller in the same transaction -- or, I should say, represent neither party. Whatever fiduciary responsibility the agent had to the buyer or seller goes out the window once the agent brings both sides to the table.

Dual agents are also often called "facilitators," which the National Association of Realtors likes to say means that they make the deal happen. Other industry observers call this a "non-agent" roll because neither the buyer nor the seller gets the representation he or she was expecting.

To recap, we have buyer's agents, who represent buyers but can also represent sellers. We have seller's agents, who are the listing agents for a transaction but can also represent buyers. And, we have dual agents, who wind up bringing both buyer and seller to the closing table.

If you're trying to eliminate potential conflicts in your deal, you may want to try a couple of other types of agency. Exclusive buyer's agents (who typically belong to the National Association of Exclusive Buyers Agents, or online NAEBA.org) never represent sellers. They only represent buyers, and they typically will take buyers wherever they want to go in a metro area.

Exclusive seller agents only list properties. They do not work with buyers, and so can never bring both sides of a deal together.

It is easy to see how confusing the situation can become, especially if a seller winds up working with a seller's agent -- who does not become a dual agent.

Bend Oregon Homes & Real Estate

This happens more frequently than you might imagine. Every time you walk into a developer's sales office without a buyer's agent, you're an un-represented buyer. The developer's salesperson is under no obligation to help you, represent your best interests, or even steer you to someone who can help you.

In fact, many new construction salespeople are giving a bonus if someone like you walks in without [a buyer's agent] representation.

You can be an un-represented Buyer if you go to a property and start talking to the "Listing (sellers) agent". He or she doesn't represent you, and so everything you say can (and probably should) be transmitted back to the seller.

Seller agents cannot tell a buyer what to offer for a property. They cannot recommend which home to buy if you're deciding between two. They cannot point out the defects of a home, unless they're material and not visible to the naked eye. And finally, seller agents can only provide you with the information you need to make a reasonable offer only if you ask for it. In short, Seller's agents cannot legally give you professional guidance on a real estate purchase if the information provided would jepordize the seller's bargaining position.

You can see why it's important to know who represents you in the single biggest transaction of your life. Adjust your expectations accordingly.

Buying a home in Bend, Oregon? Call 1.800.689.2363 to benefit from my 13 years of real estate experience in representing buyers like you in the biggest purchase of their life, or email me at greg@BendRealEstate.com .