Buyers have some awareness when it comes to agency relationships when looking to purchase a home. Many syndicated web sites provide information to recent sales, price changes, and days on the market. Therefore, buyers have a sense of value already established prior to the offer.
There are several ways to create Agency Relationships:
- Express - agreement in writing or orally
- Oral Agreements - verbal agreement to represent
- Implied Agreements - unintentionally, accidentally or inadvertently based on your actions
Let us combine the two: the Real Estate Professional and the Buyer. First, the Realtor should establish an agency relationship, along with having the buyer acknowledge the New York State Disclosure Form for the buyer; this will avoid any potential problems or misunderstandings later on. Second, the Buyer should have a pre-approval, as they discuss the type of property, price, location, and what works best.
After careful consideration, the buyer elects to have a customer relationshipwith their Realtor and begin previewing properties together. Once the buyer selects a property, next comes the decision on the offer.
Once you have decided on an offer, your Realtor will prepare the paperwork. At this point, buyers usually ask their Realtor for advice on how much to offer. Either way your Realtor cannot tell you what to offer.
Another Agency Relationship is Buyer Representation. The buyer is a client and their Realtor owes them fidelity in all transactional matters, working solely for their best interests. In this instance, you can provide days on the market, recent sold data, and other relevant information for your client.
Having a clear understanding to Agency Relationships helps clarify who is working for who, and avoids any potential court costs or loss of commissions.
