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Agency is a relationship formed when one person represents the interests of another. A real estate agent representing a client owes the client the duties of confidentiality, disclosure, loyalty, obedience and accountability. In other words, the agent is accountable to you, should disclose all information pertinent to a property or transaction and should be loyal and obedient. I know this sounds like something you would expect from a pet, but it is something every agent should take seriously. It is not that the agent should be a doormat, but that your interest should come first. Think about these duties as they apply to your agent.

If you are a buyer, is your agent showing you all the listings that meet your criteria, or just those that he or she has listed or are listed by the agent's office? Under the category of disclosure, your agent should disclose all properties that are available and meet your needs. It is up to you, not the agent, to choose what you want to see. Loyalty should be to you, as the client. The agent is accountable to you in finding homes that work for you. The Multiple Listing Service (MLS), in which homes are listed,  is designed to be a cooperative system. The listing agency offers a cooperative commission to the buyer's agency, so the total commission paid by the seller is shared by the seller's agent and the buyer's agent. This, among other things, helps to maximize exposure of homes on the market, and thereby shorten market time. Agents who show only their own listings are attempting to get "both sides" of a particular deal, as are agents who make it difficult for someone else to show their listings. This may get the agent more money on that deal, but it is a disservice to the client, not to mention unethical.  By not showing a home to a potentially interested party, the home could sit on the market longer than it should. The more this is done, the more homes sit. The purpose of listing a house is to sell it, not to maximize the agent's income or increase market share.

If everyone plays by the rules, the cooperative system works well. If you suspect that your agent is not telling you about all available homes meeting your requirements, then I would say that he is not really acting as your agent. Be suspicious if someone gives you a list of homes offered for sale by his office and not other offices. If that happens, walk away and look for someone you can truly rely upon to be your agent.

 

11 Comments on Buyers is "your agent" really acting as your agent?

SEP
30
2007
Nice write up, Rich.  Here shortly, I'm linking to it on Shak & Jill!  Thank you!  Kathy
Kathy T.
9:23pm • #1
OCT
01
2007
130,227 Points Outside Blog
My partner and I ONLY work in SINGLE AGENT RELATIONSHIPS! So in that case there can never be any doubt as to who we are representing!!!
8:06am • #2
OCT
05
2007
1,038,907 Points 26 Featured Posts Outside Blog Called Shot Master
Good thought provoking post. There are agents who do not show listings with less co-op fees .
6:47am • #3
OCT
09
2007
217,110 Points 16 Featured Posts Outside Blog

Great post.

Bill and Barbara - I would like to thank and encourage you and all the other agents out there who work only in single agent relationships. It sure makes your job easier, doesn't it? Kudos!

5:48pm • #4
OCT
20
2007

Rich:

We and the PUBLIC need to see more articles about professioalism, and responsibility.

Dwight Puntigan

1:02pm • #5

Dwight,

Thanks for your comment. I appreciate it. I'm doing continuing education now and just took an ethics class. There is no way to prove a negative but I suspect that there are some agents or teams in my area who only show their own listings, which is really unfair to their buyer clients. Not to mention contrary to the entire concept of agency. The best we can do as individuals is to maintain high ethical standards for ourselves.

5:11pm • #6
OCT
27
2007
That is what A1 Realty.Com offerhttp://www.ourhomesite.com/A1RealtyCom s single agency no duel  & No in bwteen. A1 Realty.Com Single Exclusive Buyers Broker
12:58pm • #7
NOV
15
2007
I agree.  It is up to the buyer and not the agent to discard properties from the list not the agent. You might be throwing away a sale by eliminating a property.
3:37pm • #8
NOV
20
2007
1,038,907 Points 26 Featured Posts Outside Blog Called Shot Master
The agents will get into trouble some day when buyers look up on the internet and find listings that teh agent did not show them.
10:09am • #9
DEC
27
2007
109,750 Points

Hi Rich,

In representing buyers, my approach is to view five homes at a time.  They choose three, and I choose two.  They get automated emails that fit their search criteria.  This technique ensures that we see all of the homes that fit their criteria.

Catherine

1:14pm • #10
JAN
01
2008
393,140 Points 13 Featured Posts

Rich - We have transaction agents here in FL, that limit the broker's liability. Specifically removed from our duties are: the fiduciary relationship, complete confidentiality, and obedience.

I agree with you post on intent, but I also meet with my buyers at the office before we start looking at property and ask them to fill out a short form that details what they are looking for. That way, if they specify a 3 bedroom, 2 bathroom with a fireplace, I can limit my search and show them the properties that match their criteria, vs. properties that do not match their criteria.

4:46pm • #11

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Rich Quigley ABR, CRS, GRI

Chicago, IL

More about me…

Richard J Quigley

Address: 14033 Francesca CV, Huntley, IL, 60142

Office Phone: (847) 669-5372

Cell Phone: (847) 669-5372

Email Me

I write about topics of general real estate interest with with emphasis on Illinois including Carpentersville, Huntley, Crystal Lake, Algonquin, Lake in the Hills and the northwest suburbs of Chicago as well as the City of Chicago. I occassionally write about topics of general (non real estate) interest.


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