Types of Realtors

As we come into August and the dog days of summer, lots of things are happening in real estate and the market. Don’t forget the changes that I talked about last month, which begin on August 17. If you need more information on that, please feel free to contact me, or hit up my YouTube channel, or on the blog at LearningToBuyAHome.com.

A few people have asked me what these changes mean to potential home sellers. If you are thinking about selling your home, you want to interview a few Realtors. Ask about their experience, how many homes have they sold, what did they do before they got into real estate, will you be working with them or someone else on their team, what does their marketing look like, how did they come up with the listing price for your home, and ask them to show you the paperwork/research that supports that decision. Ask them about their professional fee (commission). What does that fee include? What does your net potentially look like after all the fees and taxes? Every Realtor works their business, and their professional fees, individually, and what they include for that fee will differ. There is not a set ‘standard’. Another question to ask is about dual agency.

There are 3 types of Realtors.

• The seller’s Realtor works for the seller. When the listing contract is signed, the seller’s Realtor now owes the seller a Fiduciary Responsibility. The seller’s Realtor has a duty to put the seller’s best interests above their own. A big part of a seller’s Realtor’s duties is helping the seller get their home ready to go on the market, help the seller negotiate an offer and any inspection repairs in the inspection contingency. If there is an issue with the appraisal, either price or repairs, the seller’s Realtor assists with that as well. The seller’s Realtor’s job is to help the seller get through the paperwork, contingencies, and addendums that are in the process. The goal is to get the home sold to a ready and willing buyer with the least amount of stress possible.

• The buyer’s Realtor works for the buyer. When the buyer brokerage agreement is signed (remember, starting 8/17 we can’t even show a home without one signed first), the buyer’s Realtor now owes the buyer a Fiduciary Responsibility, meaning the buyer’s Realtor must put the buyer’s best interest above their own. The buyer’s Realtor will help the buyer get preapproved (if they aren’t already), help them locate a home to fall in love with, one that is in a comfortable price range for the buyer and checks off those boxes the buyer has…. their ‘wish list’. The buyer’s Realtor will write up an offer for the home, including a professional fee for the Buyer’s Realtor.

The buyer’s Realtor writes up the offer in the best interests of the buyer. The seller’s Realtor then goes over the offer with the seller. An offer is more than just price…. there are appliances, closing date, possession date, loan information, professional fees, inspection period, and other contingencies and addendums that can be included, and it is all negotiable. The average offer is about 16 pages long. The seller can accept the offer, decline the offer, or counter the portions of the offer to better reflect what the sellers’ needs are. The seller’s Realtor will help with the pros/cons of the offer in hand, and their options.

• A Dual Agent is a Realtor who is representing both the seller and the buyer on the same home. While dual agency is illegal in some states, it is not illegal in the state of Washington. One thing to remember is that “RCW 18.86.060 prohibits a Buyer Broker from advocating terms favorable to Buyer to the detriment of the seller and further prohibits Buyer Broker’s representation of Buyer.”

This is a direct quote from the Buyer Brokerage Agreement, section 4, where a buyer would be asked to sign an agreement for their Realtor to also represent the seller. There is a similar section for the seller to initial where the seller would be agreeing to a dual agency. As a buyer and/or a seller, you can decline dual agency. A team is a dual agent. A builder’s agent (in the model home) is a dual agent. Dual agency is a Realtor/team who represents the seller, and the buyer on the same home.

As a seller and a buyer, it is important to ask ALL the questions… even the uncomfortable ones. Hire someone you feel comfortable with, as there is a lot of stress involved in selling or buying a home. Just like any good relationship, it is important to be able to laugh. It is important to hire the Realtor who you feel is going to do the best job for you.

As always, if you have any questions or comments, I’m always happy to help!