All things real estate: Broker should represent both sides in sale

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If you hired a friend (which I had mentioned a while back not to do in some cases) to sell and search out a purchaser for your home, I would be curious as to how many of you had an excellent experience and those who were disappointed and let down. I am doing my own internal survey and I would appreciate it if you have had either a good or bad experience to let me know by emailing me: phil@turnkeyrealestate.com. I will not mention any names and I will report the findings in a future column.

The next most important item if you are a seller, investor, purchaser, renter, or lessee of residential or commercial property is how many of you make the effort to search online and read whatever reviews and testimonials are available about potential agents that you might consider hiring now or in the future? More and more consumers who are looking to sell, invest, purchase, rent, or lease residential and commercial properties are choosing this method to gain valuable information about the individual(s) profile, background, knowledge, etc. and inner essence as a person based on past and current comments. This will go a very long way and be a huge determining factor as to their credibility and professionalism and whether or not you will choose them as your broker of record in representing you in the sale of your property.

The majority of the time the home is the most tangible and valuable asset that you possess which contributes to your wealth throughout your lifetime. What attributes will you be looking for in your Broker? If you are a purchaser, will the Broker who you choose be truly working for you as a seller’s, broker’s, buyer’s or dual agent, or if you are a seller will they be representing you as a seller’s agents but then will they possibly potentially become way too close to their buyer and inadvertently become a quasi dual agent?

I want to be clear and upfront that we as quality, professional, knowledgeable brokers and salespeople all want to build rapport and long-term relationships since that is how we build and scale our businesses for referrals and for the purpose of our short and future profitability. However, there is that fine line between you as a Broker and salesperson representing your seller and investor as well as properly representing you as a buyer, without any conflicts of interest to your seller. Not only does it sounds challenging and confusing, but many times it actually is.

The law of agency and who you really represent is most times confusing to the typical agent who has been in the business for a short period of time, let alone many high-profile Brokers, too! I would like to know how many of my readers know the differences in how a seller and/or a buyer can be represented and the meaning of their specific type of representation being done the correct way; (if you are an agent, you can answer, too, but I will need to know if you are a licensed Realtor so the survey isn’t skewed either way).

What I have found over the years is that the law of agency as to whom your agent represents can be extremely confusing. Generally, I don’t feel agents always explain to their sellers, investors, and buyers the differences. What’s more critical is being straightforward, transparent, and accurate when conveying pertinent information to all intended parties before, during, and after the sale. The real problem is the law of agency is way too confusing for almost everyone. I have even conversed with some lawyers who do not really know the true and accurate differences.

Other states have a different type of representation called transaction agency where you as a salesperson or Broker do not represent either the seller or buyer but just the transaction (which I believe is less confusing and much easier to perform). You’re sort of an intermediary in conveying information to both parties, while at the same time being transparent, upfront, and candid in conveying the necessary and needed information to enable the parties to come to an agreement. Another explanation is, and I quote from DownTown Real Estate in Fort Collins, Colo., and a few of my own words, “A transaction broker cannot act in the buyer’s or the seller’s interests, by law, they work to facilitate the transaction, communicate between both parties, write the contract and attend the closing as opposed to specifically representing a seller, buyer or both parties as is done in many other states in the U.S.”

Professionally speaking, I believe the New York Department of State with the assistance of NYSAR (New York State Association of Realtors) should consider adopting this other way to represent parties in their sales. It is less convoluted and another choice to enable sales to take place. It would be up to the agent to provide this information in the proper fashion to the seller, buyer, and investor to make it clear that this is just another way to approach a transaction that will lead to a successful conclusion. Realtors, attorneys, sellers, investors, buyers, and tenants, what are your thoughts on this idea? Call, text, or email me. Thank you.

Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. He has 39 years of experience in the Real Estate industry and has earned designations as a Graduate of the Realtor Institute (G.R.I.) and also as a Certified International Property Specialist (C.I.P.S). For a “FREE” 15 minute consultation, a value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: Phil@TurnKeyRealEstate.Com Just email or snail mail (regular mail) with your ideas or suggestions on future columns with your name, email and cell number and he will call or email you back.

 

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