Do You Need a Real Estate Agent?

By: Victor Normand
Published: May 2015

Donald Trump was recently asked why he thought he would make a good President. He answered “because I know all the right people.” And that’s not a bad answer. Engaging a good real estate agent makes YOU smart. While tapping into their knowledge and experience is a very good thing, having access through them to their local office support and to their list of other housing professionals is important and indispensable.

Referral networks are increasingly popular these days. One of the major benefits of social media allows participants to share their experiences with others. Real estate agents have always valued referrals as the most effective way to build their business. Getting started on a real estate adventure is easy going at first, but it rarely stays that way; ask anyone who has just completed a deal. Testimonials are a good way to learn about an agent and often a window into some of the complicated situations that often arise on the way to a closing.

What about deciding against using a real estate agent? In an attempt to “save” that commission expense, whether or not you save money buying or selling a property is not so certain. You can search on line for legal or medical advice and save those professional fees as well, but that might not be cost effective either. It’s all about believing that your agent represents a value proposition.

A buyer more focused on using commission money as part of negotiating a purchase by dealing directly with a seller or seller’s agent may succeed, but their negotiating success may be limited. A buyer agent brings knowledge of the local market and practical experience to every transaction. There is a vast difference between someone who does a real estate deal once every seven to ten years and someone who may have done more than seven to ten deals in the past year.

There might be comfort, if not safety, in believing that “you don’t know what you don’t know.” But, that is no defense in situations involving discrimination, home inspections, lead paint notifications, legally binding agreements and a host of other legal requirements that are a part of every real estate transaction. Whether you are a buyer or seller, full disclosure and knowing your rights can help protect you from financial difficulties, wasting time and preventing extended periods of stress and anxiety.

The Board of Registration of Real Estate Brokers and Salespersons enforces existing licensing laws and regulations on behalf of consumers. Real estate agents are required to maintain active licensees and regularly participate in continuing education. In addition, many real estate agents, including all of the Resident Experts sm at Acton Real Estate are REALTORS®, members of the Massachusetts Association of Realtor and the National Association of Realtors. As members, REALTORS® must abide by a strict code of ethics, which is also subject to continuing education requirements.

So, when you know a Resident Expertsm who is also a REALTOR®, you know the right people.

Who’s Looking Out for Me?

By: Victor Normand
Published: February 2015

Before 1990, the real estate agent who drove around with you looking at homes for sale, answered all your questions, supplied information about the house, wrote an offer, helped settle on a sale price, interpreted the home inspection and otherwise stayed with the transaction to closing was actually acting as the legal representative of the Seller, and not you, the Buyer. In fact all real estate brokers and agents in the Commonwealth of Massachusetts were duty bound to act in the best interest of their clients, the Home Seller. You would have been merely their customer.

Licensing law in Massachusetts required those brokers and agents representing the Sellers to adhere to the duties colloquially referred to as “OLD CAR”

o Obedience – Agent must carry out all lawful instructions of client.
o Loyalty – Agent must act in best interest of client.
o Disclosure – Agent must disclose all information relevant to client.
o Confidentiality – Duty to keep confidential client’s information or discussion.
o Accountability – Agent must protect and account for all money, documents, or other personal property given to her by the client.
o Reasonable Care & Due Diligence

Given the requirements of this agency relationship with the Seller client, you might be tempted to ask, “Who’s looking out for the Buyer?” And you would not have been alone on that point. The idea of Buyer Agents took hold in Massachusetts in the early 1990’s when licensing law was changed to allow for Buyer Agents. Some brokerages became exclusive Buyer Agents, serving only Buyer clients and some remained “traditional” brokerages representing Sellers as they had previously. But most real estate companies, including Acton Real Estate, became full service agencies.

So, how does the real estate consumer know who is representing them? Both the federal and state governments require brokers and their real estate agents to disclose the nature of the relationship with prospective clients up front, as soon as the first face to face meeting where a specific property is discussed in any detail, including inquiring about the list price.

To satisfy this disclosure requirement and to inform consumers, the Great Boston Real Estate Board created the Massachusetts Mandatory Licensee-Consumer Relationship Disclosure form and Certificate. The form defines each of the six types of relationships that may exist and requires the real estate agent to explain the difference and disclose which type is being offered.

Those different types are:

Seller’s Agent
Buyer’s Agent
(Non-Agent) Facilitator
Designated Seller’s and Buyer’s Agent
Dual Agent

Confused? You are not alone – in fact, unfortunately, many real estate agents do not handle this disclosure process correctly. Like most real estate companies these days, Acton Real Estate represents both Buyers and Sellers. This full service model is called Designated Agency where the ‘Old Car” relationship is established at the start between the client, whether Buyer or Seller and the Agent.

It can get complicated when the Buyer Agent and the Seller Agent involved in a transaction both work for the same real estate company. So, your best advice, as always, is to work with a Resident Expertsm who knows the law and has your back.