| You'd probably wonder what agency relationships | | | | transactions through other agencies in parts of the |
| might have to do with you, regarding buying or selling | | | | state that are not mentioned in the contract. This |
| real estate. Most people are unaware of the | | | | MUST be clear in the contract unless a buyer wants |
| importance of these types of relationships, unless | | | | their agent to represent them for the entire state of |
| they do a lot of buying and selling of real estate and | | | | Michigan.The advantages of using a buyers agent are |
| have become educated in the importance of knowing | | | | great. Services that are provided to a Buyer-Client |
| what side your agent is on. Yours or theirs?In a | | | | are as follows:Pays full attention to the Buyer's |
| traditional real estate setting here in Michigan | | | | Needs. |
| (especially up here in the more northern areas), most | | | | Tell the buyer all that is learned about the seller. |
| agents are representing the seller and NOT the | | | | Focuses on expanding the range of choices to |
| buyer. That's right! When you walk into a traditional | | | | satisfy the buyer's needs. |
| real estate office, in most cases that agent is | | | | Find the best property for the client. |
| working for the seller, even if the house is listed by | | | | Promote the buyer's search. |
| another real estate company.There have been many | | | | First opportunity to view new listings. |
| changes over the course of the last several years | | | | All properties are available and viewable, and the |
| which have often made agency relationships even | | | | sales price is negotiable. |
| more confusing, but in most respects it has been an | | | | Give advice with FACTS. |
| improvement, causing a change for the better. Of | | | | Educate the buyer. Compare competing properties. |
| course, in my opinion, there is still room for | | | | Negotiate on behalf of the buyer. |
| improvement and clarification on this subject. Even | | | | Strengthen the buyer-client's negotiating position. |
| many real estate agents are confused about this | | | | Share all known information about the seller. |
| issue. I see it time and time again when talking with | | | | Provide price counseling for the buyer-client. |
| other agents in classes that I've attended. It's | | | | Negotiate approved purchase agreement to |
| amazing how often this subject comes up in real | | | | safeguard buyer-clients. |
| estate classes.Let me take a moment to explain of | | | | Suggest financing alternatives that may be to the |
| differences in agency relationships and how they may | | | | buyer's best interest. |
| affect you in a real estate transaction.In a traditional | | | | Continue services to the buyer-client during |
| setting, an agent represents the seller or is a sub | | | | negotiations. |
| agent for the seller. In this setting, when a home is | | | | Attempt to solve problems to the buyer-client's |
| listed by a real estate company, that company | | | | satisfaction.Confused yet? There's more!Now, just |
| automatically represents that seller, because they | | | | when you thought you were understanding things a |
| have a signed exclusive right to sell contract with | | | | little better, we throw Designated Agency into the |
| that party. That company and it's agents have the | | | | mix! This is also fairly new for the entire state of |
| fiduciary responsibility to represent the best interests | | | | Michigan. A few offices in this area currently practice |
| of that seller. However, a sub agent to a seller is an | | | | this type of agency, but most stick with the more |
| agent who is representing a seller that has their real | | | | traditional Sellers and Buyers agency relationships.A |
| estate listed by another real estate company. These | | | | Designated Agent is the party selected to represent |
| agents have the same fiduciary responsibility to a | | | | a principle/client in a designated agency office. |
| seller, that the listing company does.When a buyer is | | | | Designated agency has been legislatively created in |
| working with a sellers agent, it is important to keep | | | | many states, allowing the management of a |
| personal information that they'd like to keep | | | | brokerage to establish a office policy, whereby the |
| confidential to themselves. For instance, maybe a | | | | managing broker appoints or designates a licencee |
| buyer wouldn't want to share the total amount they | | | | associated with that brokerage to act as an |
| are approved for at the bank, or what their top line | | | | exclusive agent of a principle/client, buyer or seller. No |
| price is for a home they are interested in purchasing. | | | | other licencee in the brokerage has an agency |
| If they disclose this information to a "Sellers Agent" | | | | relationship to represent that principle/client.Ok... so |
| that agent has the fiduciary responsibility to share | | | | what the heck does that mean? Basically, an office |
| that type of information with that seller. A sellers | | | | will choose to be a designated agency or traditional |
| agent is limited to what services they can provide to | | | | agency office. They can't do both, (meaning that |
| a buyer.So, how does a buyer protect themselves? | | | | they can't use traditional agency mixed with |
| Hire a Buyers Agent of course!This is still a fairly new | | | | designated within a brokerage). When a agent is |
| practice in the Northern Mid-Michigan areas and to | | | | assigned to a buyer or a seller client, that party's |
| some "Old School" real estate companies, not fully | | | | information remains confidential between that agent, |
| understood because of lack of education or the need | | | | the broker and that client only. Other agents within |
| to stick with "the old way of doing things".A buyers | | | | that brokerage will not have access to the clients |
| agent has the fiduciary responsibility to represent the | | | | information, nor will they be representing that client in |
| buyer in a real estate transaction. A buyer will then | | | | any way.Another way to clarify that is, in a traditional |
| enter into a contract with that Buyers Agent. To | | | | office, the client is represented by the entire |
| make is better understood, it almost like listing a | | | | brokerage, weather they are a buyer or a seller. In a |
| person, instead of a house. The buyer agrees that | | | | designated office, the client is only represented by |
| they will work with that buyers agent only, as | | | | the assigned agent and the broker.I know! This even |
| outlined in their contract agreement. This agreement | | | | leaves some real estate agent's heads spinning! It can |
| can last from a few days to several months or | | | | be confusing. The best way to find out how you will |
| years, depending on what the buyer and agent agree | | | | be represented, is to ask the agent you are going to |
| on. The agent and client will also agree on the | | | | be working with and have them define their office |
| geographic areas that this agreement covers. For | | | | policies regarding agency relationships.Ivie Baker |
| instance, an agent in Gladwin many not want to | | | | specializes in waterfront and recreational properties. |
| represent the buyer in a transaction in Detroit. So it is | | | | She has been with Kehoe Realty Inc since April of |
| wise to outline these areas in the contract. (For | | | | 1999 and is an Accredited Buyer Representative |
| example: the buyer and agent agree that the | | | | (ABR). This designation is a benchmark of excellence |
| contract only pertains to Gladwin and Clare Counties). | | | | in buyer representation. She is also her own |
| That way, a buyer could do other real estate | | | | webmaster for her real estate sites. |