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The Professionals
The Professionals
What's the difference between an agent and a broker? Do you need either or both to sell your home? If you have an agent or a broker, do you need an attorney? Here are some things to think about in deciding whether to hire some help.

Agents and Brokers PDF Print E-mail
Selling a Home - The Professionals

All real estate brokers and sales agents are licensed by the state. An agent must either be an agent/broker or be supervised by a broker. So, in most cases, you will be working directly with a sales agent rather than a broker.

Some states require agents to disclose all possible agency relationships before they enter into a residential real estate transaction. Here is a summary of the three basic types:

  • In a traditional relationship, real estate agents and brokers have a fiduciary relationship to the seller. That means they act, in a legal role, in your best interest. Be aware at the seller pays the commission of both brokers, not just the one who lists and shows the property, but also to the sub-broker, who brings the ready, willing, and able buyer to the table.
  • Dual agency exists if two agents working for the same broker represent the buyer and seller in a transaction. A potential conflict of interest is created if the listing agent has advance knowledge of another buyer's offer. Therefore, the law states that a dual agent shall not disclose to the buyer that the seller will accept less than the list price, or disclose to the seller that the buyer will pay more than the offer price, without expressed written permission.
  • A buyer also can hire his or her own agent who will represent the buyer's interests exclusively. A buyer's agent usually must be paid out of the buyer's own pocket.

The law does not require you to use an agent or broker. Many people successfully sell their homes on their own. This is known as For Sale by Owner or FSBO, pronounced "fizz-bo."

In most home sales, the largest cost to the seller is the brokerage commission. The commission is usually 5 to 7 percent. For a $100,000 house, that's $5,000 to $7,000.

But a broker and agent can, in many cases, help you sell your house for more than you might get without their negotiating expertise. They can help you sell your house faster than you might on your own; the longer a house sits on the market, the less it eventually sells for, generally.

How do you find a good agent?

Getting a recommendation from a friend or work colleague is an excellent way to find a good agent. Be sure to ask if they would use the agent again. You also can call the managers of reputable real estate firms and ask them for recommendations of agents who have worked in your neighborhood.

In any case, it is important to know whether the agent works full-time at real estate and how much experience he or she has. Good agents usually limit themselves to certain areas and property types. They don't make decisions for you; they explain your options so that you can make wise decisions.

Real estate agents suspected of doing something unethical or illegal should be reported to the local realty board or the state agency regulating real estate.

Look for an agent who works full-time and has experiences selling houses like yours in neighborhoods like yours, in your own neighborhood if possible. Ask the agent to provide you with a list of homes he or she has sold in the past year.

Ask what the minimum length of time is that they'd accept for a listing. Look for a brokerage firm that offers listing agreements in 90-day intervals. Your home will have the maximum exposure in its first three weeks. Within a month, you'll know if you've overpriced your home, and 90 days gives you enough time to adjust your price.

Ask how often they keep in touch with their sellers. A good agent calls the seller every week -- right away if there's an offer.

Ask for the last three sellers the agent worked with.

What a good agent and broker should do for you

An agent should help identify improvements you can make around the home to help it sell better.

Your broker should do a Comparative Market Analysis. The list price of your home is based on the sales price of other homes comparable to yours in your neighborhood.

Broker's commission

There is no fixed rate -- a fixed rate would be against the law -- but broker's commissions usually range from 5 to 7 percent of the sales price.

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Real Estate Attorneys PDF Print E-mail
Selling a Home - The Professionals

You may want to have a real estate attorney review the contract, especially if the buyer has made a lot of little changes to it. In finding a real estate attorney, personal recommendations are most helpful. But make sure the recommendations pertain to the lawyer acting as a real estate attorney;

 a great tax or personal injury attorney may be a bad real estate attorney.

Some attorneys charge by the hour; others, by a flat fee. Depending on the complexity of the deal, and the extent of the attorney's involvement, your cost may range from $250 to $1,000.

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