What is Buyer’s Agency?
Would you rather
have me work for
you or work for
The seller?
A number of buyer surveys have been conducted on the national level (perhaps the most noteworthy, by the Federal Trade Commission) which indicated that over 71% of home buyers assumed that the real estate associate that assisted them in their home search, selection and purchase represented the Buyers. However, in most cases, the real estate associate represented his Client, the Seller- the buyer was the customer.
What is meant by “representation”, “client” or “customer”?
The purchase of real estate traditionally has been accomplished by a Buyer’s selection of a real estate associate with ABC Realty to help them purchase a home by an associate at XYZ Realty. In a traditional transaction, both firms (ABC & XYZ) and their associated salespersons would have represented the Seller – their client. The Buyer would be a customer who had no representation by or agency relationship with either firm.
What choice do Buyers have regarding representation?
Most real estate brokerage firms in Michigan practice real estate brokerage exclusively as the representative of the Seller. Jack Christenson Realtors associates who are Buyer Agency Certified by the company may represent the Buyer as a customer or Client based on the Buyer’s choice.
How is “Customer” or “Client” status established?
Unless “Client” status is specifically elected in writing, the Buyer is the Customer. This is the traditional and customary status of Buyers purchasing real estate in Michigan. When a Buyer has Customer status, the Selling Broker and Selling Associate (the associate working with the buyer) act as sub-agents of the Listing Associate and Listing Broker and thereby also represent the Seller. A Buyer can establish Client status with Jack Christenson Realtors by signing a written agreement.
What is the difference to a prospective Buyer in being a “Customer” or “Client” of Jack Christenson Realtors?
As a customer, you should expect the associate to:
a) provide you with information about available properties and sources of financing;
b) deal honestly and fairly with you; and
c) disclose to you all material defects which the associate knows about in available properties.
As a Client, you could expect the associate to:
a) do these things outlined in a, b and c above: and
b) act at all times solely in your best interest, obey your instructions, disclose all relevant and material information regarding the purchase transaction, safeguard your confidences and act with reasonable care and skill and use their skills in negotiating.
When should I elect to be a “Customer” or “Client” of Jack Christenson Realtors and Its associated sales staff?
It is Jack Christenson Realtors policy to make the agency disclosure early – during the initial meetings with the prospective Buyer. In addition, it is important that you, as a prospective Buyer, choose “Customer” or “Client” status at the earliest practical time since Client status requires our associates to notify Sellers, via their listing broker, of our fiduciary relationship with you prior to the viewing of the listing.
With such a large number of Jack Christenson Realtors listings in this market area, it seems highly likely that I, as a Buyer, may be interested in purchasing one of your listings: since Jack Christenson Realtors already has a “Client” relationship with the Seller, and I may choose “Client” status with Jack Christenson Realtors, does this present a problem?
No…and yes?
No. The question describes a “Dual Agency” situation in which there is representation of two clients by one real estate company. This “Dual Agency” situation must be disclosed and agreed to by all parties in writing
…And yes. In the event a Jack Christenson Realtor Buyer Client wishes to purchase a Jack Christenson Realtors listing, Jack Christenson Realtors and its associated salespersons will play a role best described as a mediator/facilitator between the Buyer and Seller.
Before entering into such a Dual Agency situation, the Buyer Client and Seller Client must both execute the “Dual Agency Agreement.”
If I elect to become a Buyer “Client” of Jack Christenson Realtors, who pays your commission?
Traditionally, the Seller pays the commission of both the listing company and the selling company.
When I become a Seller of real estate, would I not be better represented by a company which works exclusively with Sellers as clients?
When one of our associates lists your home for sale, you as the seller, become a Jack Christenson Realtors Client; and while we may also represent selected Buyers as clients. It is clearly to the Seller’s benefit to list with a company that attracts Buyers through relocation networks (Leading Real Estate Companies of the World™), attractive services (such as Buyer’s Agency), regional multiple listing services and referrals.
As A Buyer, is it preferable to be a “customer” or “Client” of Jack Christenson Realtors?
The answer depends on each individual. However, it is evident that regardless of Customer or Client status of the Buyer, the Jack Christenson Realtors sales staff continues to set the pace for professional performance in residential real estate.
