Transcript Why should I specialize in Buyer Agency

What’s Out?

Seller Subagency
 Sellers Totally Represented
 No Representation for Buyers

Caveat Emptor
New Power
Groups

For Sale By Owner (FSBO)

Service Providers

Internet Options
Changing Roles

Specialization
 More Single Agency
 Full Service to Limited Group
 No Limitations

Niche Markets

Alternative Fees for Service
Consumer Wins!
Higher
Expectations
Agency Basics

Principal
Delegates
Authority

Agent Consents
to Delegation
Office Agency Policy

Designated Broker
Determines Agency
Policy!
Agency Disclosures

Company Options

First Substantive
Contact

Obligations
 None to Consumer
 Many to Licensee
Agency Relationships

Single Agency
 Seller Client/Buyer Customer
 Seller Customer/Buyer Client

Disclosed Dual Agency
 Two Clients
 Seller Client/Buyer Client

Appointed Agency

No Representation
No Representation

No Advocacy

Neutral Party

No Client Level Service

Some Responsibilities
Transaction Broker

Responsibilities
 Perform Terms
 Exercise Skill & Care
 Present ALL Offers
 Account for Property
 Comply with Laws
 Disclose Material Facts
Duties to Third Parties

Routine Acts
 Honesty
 Reasonable Skill & Care
 Accounting
 Disclose Material Defects

No Discretion or Exercise
of Judgment
What is the Difference?
Agent
vs.
Licensee
Information Services
vs.
Client Services
Material Facts
 Environmental
Hazards
 Material
Defects in Property
 Material
Defects in Title
 Material
Limitations on Client’s
Ability to Perform
Intestate, No Heirs
Handyman Special
Confidential Information

Affects Decision Making
 That Seller Will Take Less
 That Buyer will Pay More
 That Client will Accept Other
Financing Options

What is Important
to Client
 Why Selling
 How Price Determined
Permitted Activities

Identify & Show Property

Provide Info & Statistics

Provide Preprinted Forms

Act as Scribe

Locate 3rd Party Professionals

Identify Schools, Shopping, Etc.
Discussion Group
Agency & Loyalty
Initial
Representation?
What Disclosures?
Both Sides of
Commission?
Fair Price
Questions?
 One
Client

Single
Agency
One
Customer
 FSBO or
 Buyer at Open
House
Client Level Services

Clients’ Interests FIRST
 Best Price & Terms for Client
 Disclose Known Information
 Present ALL Offers
 Complete Accounting
 Explain Scope of Services Provided
 Disclose Financial Interests, Fees

Not Responsible for Discovery
When You Represent…
 Client’s
 Avoid
Interests Above All
Unrealistic Expectations
Agent Duties

Agent Needs to Know What
Client Needs to Know
BEFORE Client Needs to
Know
rd
Seller Agent’s Duties to 3
Party (Buyer)
 No Loyalty to Buyer
 Disclose Property’s Material Defects
 Explain Process
 Maintain Client’s Confidentiality
 Convey, Review & Explain Offer
 Coordinate Closing
 Assist
w/ Information Services
Relationship w/ Consumers
Work WITH
Customer
Work
FOR
Client
= No
Relationship
= Agency
Relationship
Seller Agency

Listing Broker’s Role
 Best Price & Terms
 Few Contingencies
 Disclose Known Information

Educate Before Dual Agency

Retain Rights
 Show Competing Properties
 List Competing Properties
Seller Agent works With
Buyer/Customer
 Listing
Agent Can Answer
Questions





Price, Terms, Feature Sheet
School Information
Personal Property that Stays
Possession; Concessions
Others
Buyer Agency

Buyer Broker’s Role
 Best Possible Price for Buyer
 Disclose Known Information

Educate Before Dual Agency

Retain Rights
 Show Same Property to
Competing Buyers
 Work with Competing Buyers
Dealing w/ FSBOs
(Customers)

Do Not Represent
Unlisted ?
Mirandize
Discuss Fees

Assist with
Services Only
Dealing w/ FSBOs
(Customers)

Services to FSBO
Lead-Based Paint
Property Disclosure
Facts about Property
Available Terms
Assist with Closing
Others?
Buyer Agent’s Duties to 3rd
Party (FSBO)

Explain Process

Provide Buyer’s Ability to Perform

Maintain Client’s Confidentiality

Convey, Review & Explain Offer

Coordinate Closing

Assist w/ Information Services
Discussion Group
Previous Client
Office Listings
Disclosure
Show Previous
Listing?
What Disclosures,
If Any?
Discussion Group

Buyer Agent
How Should Butch
Respond?
Brokerage Agreements

Listing Agreements
 Exclusive Right to Sell
 Exclusive Agency
 Open

Buyer Representation Agreement
 Open
 Exclusive Agency
 Exclusive Right to Represent
Document Decisions

Agency Disclosure

Contract for Services
 Listing Agreement OR
 Buyer Representation
Agreement
Dual Agency
 One
Broker
 Two Agents
 Two Clients
 No
Customers
Goal of Dual Agency
Treatment
Fairness
=
Dual Agent Pledge
“I Pledge Allegiance to
the Buyers and Sellers.
By the mutual informed consent
of both parties I will faithfully
provide the duties of
confidentiality and
accounting in full
measure.”
Dual Agent Pledge
I will further provide limited
obedience to their instructions,
limited loyalty to their cause, and
the limited disclosure Of
information regarding The
transaction.
It’s Legal
But
It Ain’t Easy
Full vs. Limited Service

Full…Client Level
Services

Limited…Customer
Level Services

Any Time to Reject
Limited Agency?
In-House Transactions

Small Office Issues
 Lack of Privacy
 Few Agents

Large Office Issues
 Multiple Offices
 More Privacy
What is the Broker’s
Role?
Offer Appointed
Agency as
Option
Appointed Agency
Designated Broker
Agent
Seller Client
Agent
Buyer Client
Discussion Group
Dual Agent
Obligation to Own
Buyer
Obligation to Seller
What Information?
Terminating Agency

Performance

Operation of Law





Death
Bankruptcy
Incapacity to Perform
Others
Duties Remain
 Accounting for Information & Property
 Confidentiality Forever
Discussion Group
Personal
Loyalties
What Issues?
Off-Limit
Question?
Advantage of
Appointed Agency
Practicing Safe Agency
 What
Can Be Discussed
 What
Should Be Discussed
 What
Should NEVER Be
Discussed
Property Disclosure Forms

NOT Guarantee; NOT Warranty

Important Info Often Missing

Assigns Responsibility
 Disclosure (Seller)
 Discovery (Buyer)

Back Up With Inspections
Buyers Faulted
 Nebraska
Case
 Buyers Viewed Home
 Noticed “Smell”
 Discovered Air Fresheners, Lava
Rocks
 Buyers
Negligent
 Did Not Follow Up
 Did Not Hire Own Inspection
Pass the Buck!

Insist on Inspections
 I told Buyer …
 My Agent Said…

Let Client Make
Decisions
Home Warranties


Pass the Buck!
Contract Promising
Repair or Replacement
ONE YEAR
WARRANTY
 Covered Major Operating Systems
 Built-in Appliances Inside Home



Often Renewable Annually
Builds Bridge Between Seller & Buyer
Often Prevents Lawsuits
Phantom CMA
Importance of
Phantom Competitive
Market Analysis (CMA)
Who Owes?
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 Contract
 Compensation
Discussion Group
Disclosure
of Fees
Bonus
In-House Splits
Assistants
 Licensed
 Unlicensed
 Permitted Activities
 Not Permitted
Activities
Discussion Group
Working
with An
Assistant
Any Conflicts of
Interest?
What Disclosures?
Homework
 Write
Your
Company Agency
Policy
The Payoff
1025
Marie Spodek
1011 A St.
Da vid City, NE 68632
PAY
19
$
DOLLARS
THE BEST BANK
OMAHA, NE
Closing