In
a real estate market characterized by trepidation and confusion about whether
this may be a good time to sell a home in Charlotte, it seems appropriate to
discuss the reasons a seller of real property would be well advised to retain a
competent licensed broker to represent him or her in the sale of such a
valuable asset. Let’s begin by
mentioning the consumer information brochure, Working
with Real Estate Agents, published by the North Carolina Real Estate
Commission. This document outlines the
permitted agency relationships in North Carolina, and the important features of
each. Every real estate agent licensed
in the state is required to present this document to a prospective client when
the parties begin discussions of matters substantially important to the
interests of that prospective client, whether buyer or seller.
Licensed real
estate brokers are required to maintain a high level of professional and
ethical standards in dealing with a client and the public, and the failure to
do so can result in disciplinary action by the NC Real Estate Commission. But what are some the practical reasons a
seller would be well advised to retain a licensed real estate broker? After all, the seller might save some money
by avoiding such a relationship and going it alone, right?
One compelling practical
reason for retaining representation is access to the Multiple Listing Service
(“MLS”), a centralized database of information
for homes in a given geographical area.
This database is used very heavily by buyers’ agents, and a home that is
not listed in the MLS may very well go unnoticed by buyers who are ready,
willing and able to purchase it.
Further, since most buyers who become aware of a home via the MLS
necessarily come with a buyer’s agent, it is very likely that buyer’s agent has
made sure the buyer is pre-qualified for any financing the buyer will need to
make the purchase. Otherwise, the
buyer’s agent is likely wasting everyone’s time, including his or her own.
Having a buyer who
is represented by his or her own agent express interest in the purchase of your
property is therefore a good thing because you can be reasonably assured that
the buyer is ready, willing and able to proceed to closing. But a represented buyer negotiating with an
unrepresented seller can mean that the seller is functioning at real
disadvantage. The buyer’s agent should
be well aware of current market conditions, including recent comparable sales
prices… the agent should be quite familiar with the contracts, documents and
forms approved by the NC Bar and the NC Association of Realtors… the agent
should be familiar with the processes and procedures for accurately
memorializing final agreement of the parties and taking that agreement through
to closing. However, if you read the Working with Real Estate Agents consumer
information brochure mentioned above, you understand that a buyer’s agent
represents the buyer, not the seller.
The buyer’s agent’s duty is to get the best deal he can for the buyer,
not the seller. So a seller who is not
intimately familiar with the current market… or the contract and legal
documents typically used in a transaction… or the procedures followed to take a
deal through to successful closing, is at a distinct disadvantage if he or she
is not represented by his or her own seller’s
agent—someone who owes all his or her own fiduciary duties to the seller.
A good,
professional, ethical real estate broker/seller agent can therefore not only
successfully market a home for maximum exposure to buyers who are qualified to
purchase the home, he or she can negotiate the best price possible (with the
participation and final approval of the seller, of course), has sufficient
familiarity with the legal documents typically used in a transaction to make
sure that the final documents the parties execute accurately reflect the deal
the seller has actually agreed to, and he or she should be fully aware of the
processes and procedures that take that agreement through to final, successful
closing. Most transactions in the
Charlotte metropolitan area involve hundreds of thousands of dollars… and
sometimes millions. It therefore seems
wise to seek the representation of someone who is truly familiar with, and can
take reasonable control over, all the variables described above, while being
bound by NC law to represent the seller’s best interests throughout the
transaction. It’s really just common
sense.
Abraham Lincoln
famously said, “A lawyer who
represents himself has a fool for a client.” A similar principle applies to the
seller of property who decides to “go it alone.” You may think you know the current market,
but may not be intimately familiar with the legal documents that will protect
you in the transaction. You may have a
good working knowledge of processes and procedures typically followed to get
your transaction to closing, but not have the ability to get your property
maximum exposure to people who are ready, willing and able to buy it. Unless
you are engaged full time in the real estate business, it is very unlikely you
possess all of the current skills needed
to successfully maximize the return on a very valuable—and in most cases—your
most valuable investment.
For more information and to search the entire Charlotte area MLS system FREE, go to www.EricDorerRealEstate.com
