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Do you want to be a customer or a client? If you have not signed a Buyer Representation Agreement with your agent, you are a customer, and as such, the level of service that your agent can provide to you is minimized.
Historically, buyers were not represented by license holders. They were an unrepresented customer and all brokers represented the seller. With the creation of the Buyer’s Representation Agreement, the buyer enters into a fiduciary relationship with the agent and the agent is working exclusively on behalf of the buyer.
Most people know that when a seller wishes to list his property, unless he decides to sell it himself, he engages the help of a REALTOR®. They sign a Listing Agreement and the agent is now working on behalf of the seller to market and sell his home.
However, when a buyer contacts a real estate agent and asks to see a home, the buyer is a customer, not a client, and that agent is working on behalf of the seller until the buyer signs a Buyer’s Representation Agreement. Here are the main differences between being a customer and a client and the level of service:
|
CUSTOMER |
CLIENT |
|
Agent owes honesty and fairness |
Agent owes honesty and fairness |
|
Agent can only share material facts with buyer |
Agent provides professional evaluation and interpretation of market for negotiation strategy |
|
Agent can disclose all information they know about the buyer to the seller (potentially weakening negotiating strategy) |
Agent owes complete confidentiality to the buyer and works on behalf of buyer to negotiate based on buyer’s needs |
|
Agent cannot advise buyer on offer, pricing, negotiating repairs, etc. |
Agents assists buyer in every step of the transaction with advice and counsel |
|
Agent does not owe a customer obedience, loyalty, disclosure, confidentiality, accounting or reasonable care |
Agent is bound by the Code of Ethics to provide obedience, loyalty, disclosure, confidentiality, accounting and reasonable care |
Deciding on whether or not to sign a Buyer’s Representation Agreement is easily solved by determining what level of service you desire from your real estate agent. The seller has someone working on his side and in his best interests, shouldn’t you as well?
Call me today--I would love to work on your behalf to make sure you are fully represented!
Kathy Reid
832-528-2324
kathy@reidrealestateteam.com
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