Real Estate
Services provided to customers by
real estate agents
A real
estate broker has only one client at a time per deal but this could
be either the seller or the buyer. The buyers and sellers themselves are
the principals in the sale and real estate agents are their facilitators.
However, though a real estate agent usually fills out the real estate
contract form, normally real estate agents are never given the power of
attorney to sign the real estate contract or the deed on behalf of the
buyer or the seller. The principals and real estate agent sign these
documents, respectively. In order to collect their commission(s), the real
estate agents need to put themselves down on the contract as the agents
for the respective principal. The use of a real estate broker is not a
mandatory requirement for the sale of a real estate or for getting a
mortgage loan from a lender; although if a broker is used, the lender or
its attorney will require that they be paid their commissions. Lenders
normally have their own requirements for a loan though:
1. A seller is
represented by the seller's agent during the transaction and has fiduciary
duty to the buyer.
2. A buyer is
represented by the buyer's agent during the transaction and has fiduciary
duty to the buyer.
3. During his career
span the agent is usually both the buying and selling agent, there however
are certain agents who will choose to work as a buyers or sellers agent
exclusively. The business practices of real estate agencies depend on
their location or state. However, the services provided by real estate
agents are generally as follows:
Services provided to
seller
The real estate brokerage or agency earns its
commission on signing a listing contract with the party wanting to sell
the real estate, also called seller, by doing the following for the seller:
Finding a buyer(s) for the real estate property the
seller intends to sell, especially if the buyers who are willing to pay
the
listing price or close to it are financially qualified.
In the United States of
America, the law directs the real estate agent to forward all available
offers to the seller for consideration or review. In order to help
accomplish this goal of finding prospective buyers, real estate agencies
are found to commonly do the following:
1. The real estate property listing is
published as 'for sale' to the public; usually this listing is on a
Multiple Listing Service in addition to any other ways there might be of
listing the property in question.
2. In some cases, holding an Open house to
show the property can prove to provide the kind of publicity the seller is
looking for.
3. Often a "For Sale" sign board is placed
on the property giving information as to how the real estate agent can be
contacted.
4. Ensuring a prescreening has been done
for prospective buyers so that we can be sure that they are financially
qualified to buy the property; the higher the financial qualification of
the buyer, the more likely it is that the closing will be a success.
5. Advertising the property. Advertising is
most often the biggest external expense when it comes to listing a
property that is up for sale.
6. Being a point of contact available to
answer any questions from prospective buyers about the property and to
schedule site appointments.
7. Preparation of documents providing a
description of the property for advertisements, pamphlets, open houses
events, etc.
II. In certain cases,
providing the seller with a real property disclosure form and other forms
that may require to be filled out.
III. In some cases,
holding an earnest payment cheque in escrow from the buyer(s) until the
closing is done by the real estate agent. The term closing refers to the
buyer / seller meeting where the real estate property is actually bought /
sold and the title is conveyed by a deed; in other words, the deal sealed.
IV. Negotiating the price on behalf of the seller: in
effect, the seller's agent acts as a fiduciary for the seller. This often
involves preparing a standard real estate purchase contract by filling in
the blanks on the contract form.
Services provided to the
buyer(s)
I. A real estate brokerage (agency) strives to do the following
for the buyers of the real estate property:
1. Finding a
real estate property that suits the buyer's needs, specifications, and
spending capacity
2. Taking buyers to and showing them real estate
properties available for them to buy
3. When
deemed necessary, prescreening the buyers to ensure they are possess the
financial qualification required to buy the properties listed.
II. Negotiates for the best price on behalf of the
buyer(s) and prepares the standard real estate purchase contract by
filling in the blanks on the contract form. The
buyer's agent therefore acts as a fiduciary for the buyer.
For both buyers and / or
sellers
I. If the same real
estate agency represents both the buyer and the seller, they are generally
considered a dual agent. Special laws / rules often govern the functioning
of dual agents, especially in when it comes to negotiating a price.
II. In addition to
this, some real estate agents do coordinate various other aspects of the
closing.
When you are in need of
a title search or some good title insurance, you will need to look beyond
your real estate agent. They do not do that and they do not conduct
surveys or formal appraisals of the property that is up for sale, such as
those required by lenders, and also do not act as lawyers for the parties,
although they may be instrumental in coordinating these activities with
the appropriate specialists.
The real estate agent's negotiation and financing skills are
important, regardless of whether they assist sellers or buyers in either
of these activities involving the real estate. Some real estate brokers
may also be associated with loan officers who may influence and prod
finance buyers to make their purchase.
