I have taught real estate princ. and prac. for over twenty years. Thousands and thousands of students have interacted with me on dozens and dozens of different areas of study. Nowhere in this vast body of contact have I ever seen a more often ignored concept than that of "Agency".
Who does the real estate agent that you're talking to represent?
If you're a buyer does the agent work for you? Do they try to obtain the lowest price for you? Hard to imagine since over 95% of all real estate compensation is based on commission, and that is based on sales price!
If you're a seller, is the agent you hired telling buyers to, "make an offer, they really have to sell" or worse revealing what other offers have been on the table and the result!
When you are entering into a real estate relationship spend a little extra time talking about Agency, and who represents you and who does not.
I usually tell clients that a real estate professional has three important things to remember (there are more than three, but these are the most important):
What can I say? What I can't say? What I must say?
Who does the real estate agent that you're talking to represent?
If you're a buyer does the agent work for you? Do they try to obtain the lowest price for you? Hard to imagine since over 95% of all real estate compensation is based on commission, and that is based on sales price!
If you're a seller, is the agent you hired telling buyers to, "make an offer, they really have to sell" or worse revealing what other offers have been on the table and the result!
When you are entering into a real estate relationship spend a little extra time talking about Agency, and who represents you and who does not.
I usually tell clients that a real estate professional has three important things to remember (there are more than three, but these are the most important):
What can I say? What I can't say? What I must say?
About the Author:
Steve Simon has taught thousands of adult students the ins and outs of real estate. Steve is the chief Admin. of the Steve Simon School of Real Estate, a licensed Florida real estate school.
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