Dear Michael: I am considering buying a home. Should I allow the listing real estate agent who represent the seller represent me as well? I am not comfortable with the situation.
Answer: There are three types of Agency relationships that can exist in a real estate transaction. First is Buyer Agency. Buyers Agency discusses how the agent is to be compensated for the work he/she is performing on behalf of the buyer. The buyer does not pay the commission; it is paid by the seller.
Second type of agency is Seller Agency. Sellers Agency agreement is covered within the listing agreement. The terms of the listing agreement are specific and enforceable. These include commission agreement, length of listing (days on market) and price.
Third is Dual Agency. Dual Agency can come in two forms. The first is when the Brokerage firm has the listing and has one of their agents within the brokerage represent a buyer. This situation should not cause any problems or raise any eyebrows. The second is when the listing agent himself brings a contract to the seller and represents the buyer as well.
Caution is advised as no party should go unrepresented. Real estate transactions must remain fair and impartial as well as giving all parties to the transaction an equal chance of getting either the highest or best value. This form of dual agency works well in most instances but can sometimes cause a conflict of interest.
Dear Michael: My agent is giving me little feedback from prospective buyers at open houses and when she is showing my home. I ask her but I can never get a straight answer. My home has been on the market for 6 weeks and I have received no offers.
Answer: My first advice for you is to take a deep breath and relax—your home has only been on the market for six weeks. This is a short amount of time given the current state of our real estate market and economy.
There is no need to stress and work yourself out. You mustn’t let your emotions get the better of you. Your home will only sell if the price is competitive and when the right buyer is ready and willing to make you an offer.
It is critical to have your home priced at fair market value. As for your agent, she can only give you feedback if she gets feedback. It is very difficult for your agent to know what everyone is thinking when they preview your home.
Buyer’s have different wants and needs and may not want to share them with your agent. Ask your agent to follow up with the buyer’s agents after the showings. Be ready for positive and negative feedback and don’t take it personally if someone says something negative about your home. Your home is right for you but may not be right for other prospective buyers.
Dear Michael: My home was in escrow for only four days when the buyer decided to cancel for no apparent reason. The agent said that her kids talked her out of it. Is the buyer allowed to cancel a purchase for a reason other than stated in the purchase agreement?
Answer: With the economic situation and all the negative news out there buyers are up against the fence…Purchases are being cancelled and the real estate market is suffering. No transaction is firm until buyers have removed all of their contingencies.
Buyers have 17 days (this can be extended in writing) to remove all their contingencies unless otherwise specified in the purchase agreement. The buyer’s investigation of property condition and approval of all report is the contingency that allowed this particular buyer to cancel the sale of your home.
If for any reason a buyer disapproves of a disclosure report or finds anything wrong with the property then he/she can cancel the agreement. The fact that this particular buyer cancelled for no apparent logical reason does not mean that he/she is not within his/her rights to cancel.
This specific reason for cancellation may not make any common sense to you but is sufficient for a buyer to cancel the agreement and get their earnest deposit back.
Michael Kayem is a Realtor with Re/max /Execs serving Culver City and the Westside since 2001. You can contact Michael with your questions at 310-390-3337 or e-mail them to him at: homes@agentmichael.com