Real Estate Companies

When choosing real estate companies to work with in searching and buying a home, there is certain information you need to look out for to make it a better relationship and to save you dollars.

When you begin the search for your home you have three choices: you can go it alone and do all the legwork of finding homes by looking in the newspapers, searching online or simply asking around; you can call a real estate agent and ask them to show you homes; or you can sign a contract with a buyer's agent.

When you call an agent and ask them to show you some properties, you have to remember that they are usally work with the seller, even if they are not the listing agent (the listing agent is the agent who was hired by the sellers to list their home). This ties in with the fact that the agent is paid a commission based on the selling price of the house (usually a 5-7% split between both agents involved). So, the higher the sales price, the more money the agent makes.

Using buyer's real estate companies means the agent is working with your best interests in mind. A buyer's agent will work to negotiate the best price, ensure the property is inspected, and make sure you have the representation you need.

Although there are situations where agents charge an hourly fee, or a flat fee for the service, in most situations they are simply working for the same commission that is paid by the seller and split it with the seller's listing agent. While there is still some argument that this method leaves the incentive for a higher sales price, buyer's agencies counter that by pointing out that a $10,000 difference in commission for the buyer only amounts to a $150 difference in commission for the buyer agent. They feel that the benefit of your satisfaction with their service and the word of mouth promotion they will get outweigh the loss of this small amount of money.

The National Association of Exclusive Buyer Agents lists three types of buyer's agents:

• Exclusive Buyer Agent (EBA): This agent works for an office that does not take listings of any kind and represents only buyers.
• Single Agency Buyer Agent (SA): This agent works for real estate companies that takes listings, represents buyers and sellers, but will represent only one client in any real estate transaction. They will not practice dual agency.
• Buyer Agent (BA): This agent works in a traditional real estate office that takes listings. Will work with a buyer under contract. If a buyer wishes to purchase a property that is listed by their office, they will declare "dual agency" and represent both the seller and the buyer.

(Dual agency means the agent, or agents, are working on both sides of the transaction. For example, an agent with XYZ Realty may represent the seller, while another agent, or the same agent, also with XYZ Realty represents the buyer).

Here are a few additional things to consider before working with real estate companies:

• In most states, realtors traditionally represent the seller instead of the buyer.
• You should specifically ask any real estate agent showing you property who they represent. Don't assume that the real estate agent showing you property represents you unless they specifically provide you with an exclusive buyer agency agreement for you to read and sign.
• Most states require that real estate agents provide you with a written "Agency Disclosure" for you to read and sign acknowledging who the agent represents.
• The terms "Disclosed Dual Agent" and "Designated Agent" mean that the real estate agency can represent both the buyer and seller. Only an exclusive buyer agent having both the real estate agency and agent, work only with the buyer. Many real estate companies that act as buyer agents, also list property for sale.
• Ask a realtor for references prior to hiring them to represent you. An experienced buyer agent should be able to provide you with ample satisfied references.

A REALTOR® is a real estate professional who is a member of the National Association of REALTORS®