Home buying 101 in Bethalto, IL:  Step #1 - Know How Agency Affects You

You may start your search for a new home by looking through the Sunday newspaper ads, browsing the internet, and driving through the neighborhood (s) you are interested in.  But when you decide to get serious about buying a home, it is important to find a real estate agent you can trust.  One of the best ways to do this is to talk to the people you know.  Ask them about their home buying experience.  Is there an agent they would recommend?

Don’t dial that number yet!  There are a few important things you need to know first.

• Just because they have the title “real estate agent” that doesn’t necessarily mean they are your agent. There is a difference between being a customer and being a client.
• As a customer, you are still entitled to fairness and honesty, but the agent is only required to perform functionary or ministerial tasks.  Or in plain English, the agent can provide you with factual information and be of some assistance, but they do not represent you.
• You may become a client through a contractual Buyer Agency Agreement.  At this point the agent represents you and is obligated to provide you with fiduciary services.  Or in plain English, the agent now has an obligation to act in your best interests, maintain confidentiality, disclose all relevant information, and provides you with advice and counsel in matters of real estate.  Also, just as the agent owes certain duties to the client, the client also has responsibilities toward the agent.  In Illinois there are three different forms of buyer agency.  The real estate agent should explain the types of agency and the rights and responsibilities of both the agent and the client under each type before you sign an agreement.   
• In Illinois, dual agency is allowed.  This means an agent can legally represent two separate clients who are on opposing sides of the same transaction.  However, both clients must be made aware of this and agree to it in writing.  In my opinion though, it is impossible to fully represent the best interests of both clients at the same time.  Therefore, I choose not to be a dual agent.  
• Buyer agent services are free to the buyer!  In nearly all cases, the buyer’s agent is paid by the listing broker of the home you purchase.  Basically, the seller has agreed to pay his agent a fee to sell his house.  The seller’s agent in turn offers to share a percentage of that fee with the agent who brings a buyer. 

Should you sign a buyer agency agreement?  Well, in my opinion you shouldn’t at first.  Buying a house is one of the biggest purchases you will ever make.  Sometimes it can be a very emotional experience.  You will be working closely with your agent throughout the process.  It is important that you get to know each other.  Then, once you decide you want that agent on your “team”, it is a good idea to sign an agreement.

In part 2, we’ll discuss “Will the car fit in the garage?” and other important things to consider when looking for your new home.

Real advice. Real answers. It's Real Estate simplified. Helping buyers and sellers negotiate and manage their real estate transaction successfully.  

For real estate help in the Bethalto, Wood River, Alton, Godfrey areas email Stacie at stacie@mybethaltohome.com