Posted on 10. October 2011 05:43 by qmiskini

In Georgia (as in other states) the practice of Dual Agency is a legal and accepted practice.  Simply put, Dual Agency, when agreed to by the Buyer and Seller allows one Realtor to represent both parties in the transaction.  There are transactions where Dual Agency can work to the benefit of both the Buyer and Seller.  But most often, one Realtor cannot represent both parties to the full benefit of each party.

Both Buyers and Sellers need to be clear about the nature of Agency and the duties and responsibilities a Realtor has to their Client, whether Buyer or Seller.    Perhaps the most important duty a Realtor has to their Client is to protect their Client’s interests in the transaction at all times, including disclosing to their Client all relevant information they have learned about the other party’s interests and finances.  That makes walking the line between two Clients in a Dual Agency relationship difficult and hard to navigate.  

There are some duties and services a Seller Agent - the listing agent in a Seller Agency relationship with the Seller – can perform on behalf of both the Buyer and Seller.  This chart illustrates these primary functions.

 

However, when a Buyer allows the Listing Agent who is already in a Seller Agency relationship with the Seller to represent both parties in a Dual Agency relationship, there are duties and functions a Realtor whose role is also to represent and protect the Seller’s interests cannot adequately perform on behalf of the Buyer.  This chart illustrates those primary functions.

 

 Here is what is stated in the GAR Exclusive Buyer Brokerage Agreement regarding Dual Agency.

Dual Agency Disclosure. [Applicable only if Broker’s agency policy is to practice dual agency] If Buyer and a prospective seller are both being represented by the same Broker, Buyer is aware that Broker will be acting as a dual agent in that transaction and consents to the same. Buyer has been advised that:

A. In serving as a dual agent, Broker is representing two clients whose interests are or at times could be different or even adverse;

B. Broker will disclose all adverse, material facts relevant to the transaction and actually known to the dual agent to all parties in the transaction except for information made confidential by request or instructions from either client which is not otherwise required to be disclosed by law;

C. Buyer does not have to consent to dual agency and, the consent of Buyer to dual agency has been given voluntarily and Buyer has read and understands the brokerage engagement agreement.

D. Notwithstanding any provision to the contrary contained herein, Buyer hereby directs Broker, while acting as a dual agent, to keep confidential and not reveal to the other party any information which could materially and adversely affect Buyer’s negotiating position.

E. Broker or Broker’s affiliated licensees will timely disclose to each client the nature of any material relationship with other clients other than that incidental to the transaction. A material relationship shall mean any actually known personal, familial, or business relationship between Broker and a client which would impair the ability of Broker to exercise fair and independent judgment relative to another client. The other party whom Broker may represent in the event of dual agency may or may not be identified at the time Buyer enters into this Agreement. If any party is identified after the Agreement and has a material relationship with Broker, then Broker shall timely provide to Buyer a disclosure of the nature of such relationship.

 

For a Buyer not represented by a Realtor who finds a home whose Seller is represented by a Realtor that suggests they can represent both parties, these terms and conditions must be clearly understood as they affect the rights of both parties in the transaction.  If you have not already entered into an Exclusive Buyer Brokerage Agreement with a Realtor, the Realtor representing the Seller can offer you a good alternative.  It is called Designated Agency.  Here is what is stated in the GAR Exclusive Buyer Brokerage Agreement regarding Designated Agency.

Designated Agency Disclosure. [Applicable only if Broker’s agency policy is to practice designated agency] Buyer does hereby consent to Broker acting in a designated agency capacity in transactions in which Broker is representing Buyer and a prospective seller. With designated agency, the Broker assigns one or more of its affiliated licensees exclusively to represent a prospective seller and one or more of its other affiliated licensees exclusively to represent Buyer.

 

Simply put, the Realtor’s Broker can provide each party in the transaction with qualified Realtors to exclusively represent each party individually and to the benefit of the party the Realtor is representing.  One Realtor represents the Buyer and the Buyer’s interests; one Realtor represents the Seller and the Seller’s interests.

Then, both parties are fully represented; the added stress of one Realtor trying to “fairly” represent both parties is taken out of the transaction; and both Buyer and Seller can feel confident their Realtor is working fully in their individual best interests.

Remember… selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

 

 

 


Posted on 3. October 2011 03:47 by qmiskini

 

Buying a home is a journey, not an event.  This mantra is repeated to every new Client and over and again as we work with our Clients.  Occasionally it is a sprint, but it should never become a marathon. Your Realtor and Team are there to guide you through that journey by helping you focus your wants, wishes and needs, and then as you step through the journey, add clarity to your criteria, but remain flexible enough to adjust when the “perfect home” is found… even though it may not meet 100% of your criteria.

Client #1: “I love everything about this home, but we will have to paint the dining room and replace the back splash in the kitchen and the master bath wall paper is just ugly.”  Client #2: “The rest of the house is just what we’re looking for, but we hate the front porch so much we can’t picture ourselves walking past it every day.” Client #3: “I want to be no more than 20 minutes’ drive from home to work and I timed the trip, it’s 25 minutes away.  Yes the house is perfect, but it’s too far from my job.”  No perfect home is truly perfect.  It is possible to find a home that meets your criteria, but rarely will it meet every one of your wants, wishes and needs. 

Client #1 wanted a move-in ready home.  They did not want to make changes until they had been in the home long enough to feel comfortable and settled.  That was a pretty big “want” on their list.   When they reviewed their criteria with their Realtor, and worked through the “inconvenience” of taking on some minor remodeling, they realized they had found a home that met all their major needs and most of their wants and wishes too.  The back splash really wasn’t that ugly, it would only take a day or two to repaint and change the offensive wallpaper. They focused on their needs and were flexible about a few of their wishes. Offer made, negotiated, accepted… purchase closed…everyone delighted.

Client #2 who loved everything else about the home spent an afternoon with their Realtor driving through the neighborhood to see what other similar homes with porches looked like, and what ideas they could come up with about making changes to the look of that offensive porch to make it more pleasing.  Other than the dreadful front porch, this home met every one of their very specific criteria.  After about two hours of comparing and contrasting porch aesthetics, they actually found the list of things they “sorta liked” about “their” porch was longer than the list of “flaws” they were seeing in the designs of their neighbors’ porches.  They became more focused on their needs and were flexible about one of their wishes.  Offer made, negotiated, accepted… purchase closed…everyone delighted.

Client #3 really felt the home fit all their needs.  It had a pleasing floor plan, needed relatively little clean-up and fix-up even though not was an foreclosed property, it was in the right school district, in a well maintained sub division.  Everything about it was right.  It met nearly all their criteria… except it was “5 minutes too far!”  Offer made… offer withdrawn.  This is the 6th home they made on offer on, and the 6th home not purchased.  Focused but inflexible…everyone disappointed – again.

Work with your Realtor early in the journey to develop your list of criteria with four separate categories.

Category 1 is your needs list: I need a basement for storage and expansion.  I need at least 4 bedrooms.  I need to be in the Pope High School District.  I need the price to be no more than $275,000.  Your needs are the things that are the “musts” in order to fit your family, space, location and price minimums. This is your primary list of needs criteria in your search.

Category 2: is your wants list: I want to be within 10 minutes of I-75 to make travel to work reasonably easy.  I want an oversized garage.  I want a level driveway. These are musts also, but musts that can be somewhat flexible. 10 minutes to I-75 is great but I can manage 15 minutes.  I can swap out the oversized garage for a level driveway.  Your ideas about perfection will change as you view homes in your search.

Category 3: is your wish list.  I want a nice rear deck but a screened porch would be wonderful.  I was hoping for all stainless appliances, but these black-front appliances are all new.  I pictured my perfect home with a big shade tree out in the front.  But I can plant my own tree and watch it grow over time.  This is how you balance your needs with your wants in your selection process.

Category 4: is your Flexibility list – this is your list of wants and wishes that become apparent as you focus your search.  It lets you decide what can be flexible about in order to not let peripheral details dissuade you from buying a home that, given a small amount of elbow grease or a few minor adjustments truly does meet your most important needs, wants and wishes.  This is , perhaps, your most important list… it is the list that will help you make the best decision and be happy with that decision long after you close the sale.

Remember… selling or buying a home is a process and a journey, not an event; you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net

 


Posted on 28. September 2011 03:14 by qmiskini

 

Determining your wants, wishes and needs when searching for your new home is a very important part of finding the perfect home.  Equally important is knowing what priced home you can afford and what it will take financially to purchase it.  For many Buyers this is a scary step.  The finances of buying a home can sound complicated, daunting.  Interest rate, FICO scores, closing costs, escrows, PMI, MIP, Good Faith Estimates and on and on - terms with often confusing definitions that are not a part of a Buyer’s daily vocabulary.  And that’s just the start.

Among the members of your Realtor’s Team who will assist you through this maze should be several experienced mortgage loan officers to interview and choose from.  Each should be affiliated with a credible Lender that offer a variety of strategies and programs you can be explore to find the right loan program for your financial needs.  Your loan officer will help you determine, based on your current financial picture, what priced home you can afford, what your monthly loan expense should be, and what it will cost to secure a home loan mortgage.  They will help you step far enough through the qualification process to provide you with a Pre-Approval Letter.  And they will work with you during your home search by collecting all the necessary financial data and documents their underwriters require so that when you make an offer on that perfect home, you are ready, willing and able to close the purchase on time.

Why is being pre-approved by your Lender so important to the buying process? Just as the seller’s Realtor needs to help the seller think like a Buyer by understanding the Buyer’s wants needs and wishes, the Buyer’s Realtor must help the Buyer think like a Seller.  One of the Seller’s biggest concerns when accepting a Buyer’s offer is “will the Buyer be able to secure a loan and close the sale on time.”  Once an offer to buy that “move-in-ready” 2-story classic Georgian Traditional in the Windsor Oaks Sub Division in the Lassiter High School District in Marietta is agreed upon and bound, that property’s standing in the multiple listings goes from “Active” to “Pending.”  That means the property is essentially off the market during the next 30 to 45 days it will take to complete the due diligence work, home appraisal and finalization of your loan package. 

This is a very worrisome time for the Seller.  If you fail to secure your financing the Seller will lose precious time and money and have to restart the sales process all over again.  They will be concerned about whether or not their home will appraise for at least the agreed upon selling price. They will be concerned about their home meeting the Buyer’s physical expectations during the inspection period.  They will be preparing to move, securing their new residence. They may be purchasing a new home too, and their transaction may be contingent upon the closing of the sale of their home to you.  They will also be working with a lender to secure their new home loan.  There’s a lot for the Seller to be concerned about.  So if you are not pre-approved for a home loan by your lender, pending only the home appraising appropriately and there being no changes in your financial picture prior to the closing of your loan, you run the risk of your offer being turned down by the Seller or worse, losing your earnest money deposit because you failed to meet your financing approval obligations during the time period provided in your purchase agreement.

Being fully pre-approved gives you negotiating leverage when making an offer on your perfect new home. It allows you, with the guidance and advice of your Realtor as well as your loan officer, to confidently step through the due diligence period to complete all the essential tasks that lead to the close and that exhilarating moment after all the documents have been signed: receiving the keys and taking possession of your new home!

Don’t underestimate the importance of getting pre-approved before you begin your home search.

Because selling or buying a home is a process and a journey, not an event, you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can CLICK HERE ==èSPECIAL E-MAIL SERIES REPORTS and ask for the free no obligation series of email reports to be sent to you regularly over the next few weeks.  Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series. 

If you just want to see what other homes in your area are selling for by searching the MLS CLICK HERE =èSEARCH THE MLS FREE

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net