Working with Realtors

Mike and Jackie of Tomie Raines Real Estate

Mike and Jackie Shulsky's

Never underestimate the value of professional advise...

Looking for a home seems fairly easy. You can drive around neighborhoods, visit Sunday open houses, and search Realtor web sites to view online visual tours. These are things you can do without the assistance of a Realtor.

Things become more complex when you seriously decide to buy a home. You'll have questions about schools, neighborhoods, taxes, inspections, contracts, disclosures, resale value, and how much you should offer for the home. Now, you'll be wanting
advice from a knowledgeable professional who can help you make a wise buying decision.

A Realtor is your best connection to the world of real estate. A professional Realtor is deeply involved in the business and has knowledge of market conditions, home values, and neighborhoods. A Realtor will answer your questions and serve as your guardian angel during the home buying process.

Facts about Realtors:

Realtors work as Seller's Agents, listing and marketing homes for sale.
Realtors work as Buyer's Agents, assisting with the purchase of a home.
Realtors can sell properties listed with any real estate company.
Realtors can negotiate with homeowners selling a "by owner".
Realtors work on commission. They receive no salary or other benefits.
Realtors are paid only when a transaction closes.

Seller's Agent, Buyer's Agent, and Subagent

A Seller's Agent, also called the Listing Agent, is the Realtor who was hired to list the home
and find a buyer. Michigan law requires that the listing agent, the Realtor whose name is on the yard sign, work on behalf of the Seller’s best interests at all times.

Even if you work with a Realtor who is NOT the listing agent, that Realtor must represent the seller as a subagent of the listing Realtor until you sign a Buyer's Agency Agreement asking
him or her to exclusively represent your interests as a Buyer's Agent.

Without a Buyer's Agency Agreement the Realtor who is showing you a home MUST present the home as positively as possible and may not mention flaws about the building or its location. Should
you make an offer on the home, the Realtor is required to pass along information that might be of benefit to the seller, including how excited you are about the home and how much you can afford.

The Buyer's Agent Agreement

Under a Buyer's Agency Agreement the Realtor is excused from working for the Seller and looks after the best interests of the Buyer throughout the entire home buying process. Just as the agent who lists the seller’s house is obligated to not mention significant flaws, it's the duty of your Buyer's Agent to point out positive and negative aspects about a home's condition, location and market value. With a Buyer's Agent you have someone to provide professional advice and help you find a home that best fits your needs in a neighborhood you'll enjoy living in.

NOTE: A Buyer's Agent is a great benefit to you and doesn't cost you anything! The listing agent splits his commission with the Buyer’s Agent as payment for having provided a ready, willing and able buyer.

Selecting a Buyer's Agent...what to look for

What qualities should you look for in a Buyer's Agent? The years of experience? Number of home sales each month? The one with the most letters following their name? Has he or she ever been Realtor of the Year? These things prove that the the person is involved in the Real Estate business, but it's not what really matters.

What you really want is the total commitment of a good, honest Realtor who is sensitive to your particular situation and will be dedicated to helping you find the right home. You're the only one who will know the "right" home when you discover it. It will be a Buyer Agents job to listen to your needs and wishes and help you find a home that fits your requirements. As you tour homes, your Buyer Agent will learn a great deal of about your tastes. Thus, avoiding homes that don't fit your criteria and enhancing your search by introducing you to neighborhoods and possibilities
you never thought to consider.

When you're ready to make an offer, a Buyer Agent can prepare a market analysis to help determine a fair offering price and then protect your interests during negotiations and inspections. You can be certain that an experienced Realtor will do everything possible to ensure that your new home is purchased at a fair price and transferred to you in sound condition.

How do you find such an agent? It’s like any other relationship. You can sense that there’s something about the person that works for you and you just go with it. Just
as hard work and sensitivity to your needs inspire your confidence in a Realtor, your loyalty will inspire your Agent. Choose your Agent carefully, then stay with him or her.

IMPORTANT: Don't call Listing Agents!
Once you've signed a Buyer's Agency Agreement all appointments to view homes are made through your Buyer Agent. Calling the listing agent defeats the purpose of having a Buyer Agent. You may find yourself being shown
a property by a charismatic Realtor whose charm and enthusiasm lure you into sharing personal information the Seller doesn't need to know.

When visiting an open house announce that you are working with a Buyer's Agent. One of the reasons agents
host an open house is to meet unrepresented Buyers. By striking up a relationship with another agent, allowing the Realtor to email you listing information or show you homes will only be wasting the time and money of a helpful Realtor who will be expecting to represent you when you write an offer.

Dual Agency

A Dual Agency occurs when the listing agent is representing both the Buyer and Seller in a transaction. This can happen in a couple of ways:

Your Buyer's Agent represents a property you'd like to purchase.

You've called a listing agent to see a property and it turns out to fits your needs perfectly. You have not yet signed a Buyers' Agency Agreement with another Realtor, so you agree to let the listing agent present your offer to the Seller.

The Realtor is now working for both the Buyer and the Seller and must give each equal representation. The Realtor must remain neutral and refrain from disclosing information that could compromise or damage either party's position.

Some believe that Dual Agency is a conflict of interest. However, there should be no issues if Dual Agency has been explained, you are comfortable with the arrangement, and you feel you've been given honest information regarding the property and the transaction.