Home Buying Tips

What are the different types of buyers agencies?

Agency

This is a framework that has developed in the law to allow individuals to act through another person or representative.

Examples might include hiring an attorney to represent you in a business transaction, working with a stockbroker to purchase stocks or other investments, or working with a real estate agent to buy or sell real estate.

Your legal agent may have unlimited or limited powers on your behalf. Your legal agent owes you certain fiduciary- like statutory duties such as confidentiality, promoting your best interests, and exercising reasonable skill and care.

Designated Agency

This arrangement with a real estate brokerage company results in one or more sales associates with that company being designated as your legal agent.

Illinois state law presumes that the agent you work with, whether you are a buyer or a seller, is your designated agent, unless you have an agreement otherwise. Other sales associates in the real estate firm may be the legal agents of other buyers and sellers and may be the legal agent of the party from whom you buy a property.

The only individuals owing you statutory duties are those designated as your legal agent and not any other sales associates within Keller Williams Success Realty.

Buyer's Agent

As a buyer, you have access to listings available to your designated agent through the multiple listing service, for sale by owners, and other sources.

You will also receive other services from your agent such as financing information, assistance in determining your price range, and assistance in facilitating the closing.

Typically, the buyer and Keller Williams Success Realty will enter into a written brokerage agreement. This agreement will identify your designated agent, define the scope of your agent's authority, and spell out contractual rights and duties between you and the designated agent.

Dual Agency

In this type of situation, both the buyer and seller in a transaction are represented by the same legal agent.

In this case, there are specific statutory duties that the dual agent owes to both buyer and seller. Most notably is the duty not to disclose confidential information of one party to the other. Dual agency is allowed only with your consent.

Upon entering into a brokerage agreement you will be given a form explaining dual agency that seeks your consent to allow your agent to act as dual agent should the situation arise. If you consent at that time and a dual agency situation actually arises, you will be asked to confirm your prior consent before entering into a contract for the purchase of property.

Please note that in a dual agency situation, the role of the sales associate will be somewhat limited and you will, at times, have to act on your own behalf when negotiating terms of your purchase.

Remember that in whatever manner you choose to be represented, the goal is the same. We are trying to assist you in the purchase of real estate upon terms acceptable to all parties.

Loyalty Pays Off Big!

Finding the right home is not an easy task. As a potential buyer, before the moving van is ordered and before you finally move in to your new home, there are numerous steps to be taken.

Buyer Misconception

Most buyers have a major misconception regarding their use of the services of a realtor when purchasing a home. This causes the buyer to receive less than the quality of service they should be able to expect from their agent. This common misconception is, "Two agents are better than one". Many buyers feel that they should work with more than one agent thinking that multiple agents will bring more potential properties to their attention. This assumption was valid in the past when agents maintained their own listing files. All listings are now maintained on a central computer system of the multiple listing organization. All agents are members and have complete access to ALL available listings at any time.

My advice is to shop for the sales associate that you feel will get the results you want and then stick with him or her exclusively. In this way, you will have a dedicated agent who will take on the personal responsibility of handling all the details of your upcoming home purchase. If you give your loyalty to one person, you will be rewarded with good results.