Would you hire your spouse’s Attorney in a divorce battle, or if someone brought a law suit against you would you hire the opposing side’s attorney, hell no! Then why do Home Buyers and Sellers hire Real Estate Firms without understanding the concept of “Agency?” (Who Represents Whom In Real Estate Transactions)
Buying and Selling properties are usually the largest and most important financial decisions most of us make during our life times. Buyers and sellers can be at a distinct disadvantage not understanding the concept “Agency” during a Real Estate transaction. For most of us, we don’t really care about technicalities as long as we accomplish the end goal and the transaction goes relatively well. More often than not, Agency is presented quickly and glossed over because the technicalities of Agency are somewhat complicated, scary, difficult to understand and also difficult to explain. If you read John Murphy’s article, you’ll find out according to Minnesota State Law when Agency should first be presented. Based on the law, it is enough to scare anyone away. However, Agency is the essence of why a Buyer or Seller hire a Real Estate firm; despite the fact the general concensous is that Real Estate Firms/Agents are hired to unlock doors, place signs in yards and place properties in Multiple Listing Service. As with any concept, The Devil is in the Details; understanding the details of Agency can help you as a buyer or seller gain an advantage during a Real Estate transaction knowing what to disclose or not disclose and to whom.
Just this morning, I was on the phone with a broker/agent regarding a mutual client. During our conversation, she mentioned that the sellers agent had given away just about every detail of the sellers motivations for selling. Was the selling agent representing their client’s best interest disclosing the sellers motivations? That is a question best directed at the seller. Perhaps, the seller had given their permission to expose their motivations as part of their selling strategy, but my guess that is not the case. If it was, it may have been a brilliant strategy if it leads to a signed contract.
I highly encourage you to read the article below regarding Agency:
John Murphy of John Murphy Real Estate Reports has done a fantastic job of presenting Agency along with real life examples. The Devil is in the Details with regard to Agency, and you owe to yourself to know the details prior to a Real Estate transaction.