By Vicki Trapp, AHWD, ASP, CRS, GRI, SRES, SRS, President
Greater Chattanooga Association of REALTORS®
With the upcoming Greater Chattanooga Open House Weekend (May 17-18), more than 100 listed homes will be open for previewing in southeast Tennessee and northwest Georgia. That means numerous potential buyers will be taking advantage of this opportunity see as many homes as possible. When attending open houses, or simply calling the number on a yard sign, buyers will interact with the listing agent for the home. Thus, it is important to understand who represents whom in a real estate transaction to ensure your interests, as seller or buyer, are protected.
In both Georgia and Tennessee, an agency relationship is established when a licensee (on behalf of a real estate firm) enters into a written agreement with a client – either a seller or a buyer. The most common type of agreement that establishes an agency relationship is a listing agreement. A listing agreement is much more than written permission to market the property for sale. Rather, a typical listing agreement authorizes the listing agent to put a sign in the seller’s yard, place a lockbox on the property, include the listing in a multiple listing service, and allow the listing firm permission to offer a cooperative compensation to other participants/subscribers in the multiple listing service who bring the successful buyer to the transaction.
As an exclusive listing agent for the seller, the listing agent is charged with looking out for the seller’s best interest to market the property and get the best deal for the seller. Also, the listing agent guides the seller on the relevant disclosures related to selling the property. In general, sellers are looking for four main helps from their listing agent –selling the home within a specific time period, marketing to potential buyers, finding a buyer, pricing the home competitively. So, if a seller is getting this assistance from their exclusive agent, it stands to reason that in most cases a buyer will want his/her own representative, too.
Licensees also can establish an agency agreement with buyers. This occurs when a licensee (on behalf of a real estate firm) enters into a written agreement (either exclusive or non-exclusive) with the buyer to assist them in finding and purchasing a home. While it certainly is not illegal for one licensee to represent both the seller and the buyer, in most cases a buyer should consider having their own representative.
A home often is the largest purchase in one’s lifetime. Thus, buyer should seek out someone they trust to assist in finding the right home to meet the buyer’s needs. Also, buyers want someone who is knowledgeable of the local real estate market and familiar with the home buying process. While many buyers may find a potential home through their own research online or attending open houses, national statistics show that buyers still prefer to seek out the counsel of a REALTOR® to get them from the first view of the home to a successful closing. A buyer’s agent can assist in pointing out unnoticed faults or features and aide in negotiations on the buyer’s behalf.
Sellers interested in sharing their home as part of Greater Chattanooga Open House Weekend (May17-18), should contact their REALTOR® to find out how. For buyers who are ready to make their first purchase, upsize, or downsize, make sure to ask your REALTOR® about which homes to preview, as well as how to enter for a chance to win a free move.