Why should I specialize in Buyer Agency
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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