The basic rules of the transferring of property rights from one owner to another are quite simple. Aside from the parties involved it is the professionals hired to do a job that may complicate the transaction if you don’t choose them with care.
The business of real estate is not something most people dwell on from day to day unless they are thinking of buying or selling.
The Standards of Business Practice and Code of Ethics laid down by the Associations have changed dramatically over the past 10 years in preparing members of the real estate community and the public, for a level of professionalism that is expected by the consumer in today’s fast paced and high tech world.
Your first step should be to check out AGENCY1o1 to learn about hiring an Agent for the job of marketing and selling your property plus the different types of agency a Realtor is required to offer you.
It is your choice how you may prefer to be represented.
Today, all of the real estate Association's "Code of Ethics" clearly state that not only is any member of the public dealing in Real Estate entitled to a choice of representation but in all cases the Agency's who are involved in the transaction must disclose whom they are working for and have written acknowledgement by all of the parties prior to presentation of any offers.
THIS IS A BIG DEAL!
The agent is considered in law to represent the principal and to bring the principal into legal relationships with other parties. The needs of individuals are so complex that, to a large extent, such needs are fulfilled not by their own efforts but by the efforts of others on their behalf. If someone acts on behalf of another, he/she is considered in law to be an extension of that person. The law governing relations between these individuals and other persons is referred to as the law of agency.
Agents owe principals (e.g., clients) their primary allegiance, including such duties as good faith and full disclosure, competence, obedience, and accounting. Classifications and terminology regarding these duties, generally fall under the term fiduciary responsibilities and vary somewhat in printed materials. Fiduciary duties are best explained as follows:
Disclosure The agent must disclose to his/her principal any information relevant to the transaction in which the agent has been engaged to assist. This includes any facts affecting the value or desirability of the property and all known relevant and material information.
Competence The agent must exercise a degree of competence when representing his/her principal such as would be expected from an average person in that occupation or profession. In all agency relationships, the law sees the agent as an extension of the principal. Thus, the principal is liable for the agent’s actions. Therefore, the agent will be under a duty to use superior skill and knowledge while pursuing the principal’s affairs. An agent who claims to be a specialist must exercise competence in that specialty.
Obedience An agent is obligated to obey the principal’s lawful and reasonable instructions, even if the agent doesn’t agree with them.
Accountability An agent is obligated to account for all monies or property entrusted to his/her care that belongs to the principal, i.e., safeguard any money or documents relative to the principal’s transactions or affairs.
Confidentiality An agent must not use information acquired as the principal’s agent for any purpose that is likely to cause the principal harm or to interfere with the principal’s business, now or in the future. The duty of confidentiality should not be confused with a real estate professional’s responsibility to disclose known material facts about the property to non-principals. The obligation to disclose such facts, including defects, is based on the professional’s duty to treat all persons fairly and honestly.
Loyalty The most important duty an agent has toward the principal is loyalty. The agent must place the interests of the principal above all else except the law in carrying out his/her functions as an agent.
Agents owe third parties (e.g., customers) the ethical duty to be honest, the legal duty not to misrepresent, and the responsibility to exercise due care when answering inquiries or giving information. In real estate, the agency relationship can be established between the agent and either the buyer or the seller. The relationship can arise out of an agreement either expressed or implied, or written or oral. Agency relationships should be in writing and real estate brokerages should ensure that all activities fall within the limits of that authority. Agency will be implied when agents treat customers as principals (clients), even though no written agreement/contract exists.
Ask yourself if your last Agent measured up to these standards.
It is no secret that the average North American family chooses to move every three to five years for a variety of reasons. Hopefully, if wise decisions were made when you purchased your present home, a tidy profit should be forthcoming.
You should know that there have been many changes to the Real Estate industry over the last few years and the good news is that it is all in to your benefit.
Making the decision to move is not always an easy one for most of us, but when the choice is made, you want to sell for the most money you can get and usually in the fastest possible time. This is human nature and is a well known adage.
By following just a few easy steps and making the right choices along the way the experience should be a good one and hopefully a profitable as well.
There is a process in selling your property through the local Real Estate Boards and in most areas all members must belong to local and federal Associations.
Current upgrading of the real estate practitioner is now required every 2 years or they will forfeit their real estate license
Ok, brace yourselves for the following sequence of events that may turn you from a property owner into either a buyer again or maybe even a renter (Heaven forbid).
There is no doubt that if one can sell their principle residence without paying a commission the extra savings would feel better in their pocket.
Both Seller and Buyer feel they are saving something. But are they?
There are circumstances and times when selling privately is so easy and then there are times when it is not.
Hot Market In a hot market everyone gets caught up in the frenzy of escalating prices but the only way to know what your property will go for is to expose it properly to the market place. That means listing it for sale on the local MLS (Multiple Listing Service) with an experienced Realtor.
Not only are all the eligible Buyers informed about the availability of the property but through the services of their own Agent they can be guided through the organized process in which there is protection for all consumers.
Down Market When the market is down and listings take months to even get viewings never mind offers, selling privately is almost never a consideration.
No matter what you are think your property is worth, there is almost no one who will agree with you.
Conclusion In either type of market, You may be tempted to just get a free evaluation from the local Realtor and then sell the place to your relative or friend for around that price. If you want to maximize the equity, this may not be the best way to do so.
From a Buyer’s perspective, a hypothetical price is more apt to be an unrealistic one in relation to the prevailing conditions.
The services provided by the local Realtor are like any other service in any other business and is only as valuable as the recipient believes it to be. There are some things that are best left to those who do it every day.