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Selling Your Home -- Know the Broker's Duties

New listing When it's time to sell your home, chances are that you'll hire a real estate broker to help list and sell your property. You may try to sell your home yourself, but statistics show that over 80% of homeowners trying to sell on their own eventually retain the services of a real estate broker.

Before you sign on the last page and place your initials on all the pages of the listing agreement, make sure you familiarize yourself with the duties of the real estate broker whom you hire. Of course you know that the listing broker will advertise and market your property and try to find a buyer for your home. What else are they obligated to do when you sign the paperwork?

LISTING BROKER DUTIES:

Protect and promote your interests

By signing a listing agreement, the broker agrees to represent you and your interests. By law, the broker must disclose this representation to any potential buyers who ask about or come to view your home. For example, at an open house, the listing agent must specify to all visitors that he represents the seller of the home. If a buyer wants your agent to represent them in purchasing your home, there may be a dual agency situation. Dual agency occurs when the same sales agent and same brokerage firm represent both the buyer and seller in a real estate transaction. Dual agency is allowed in Virginia, provided that both parties are aware of it and agree to the relationship.

Use reasonable efforts to seek buyers at your acceptable price and terms

Price and terms

Ultimately, you select the price and terms that you are willing to accept. The listing agent will provide you the pricing data and other information to help you make an informed decision.

Negotiate on your behalf and assist in consummation of the sale

You can negotiate anything

Negotiations occur throughout the transaction. Choosing a Good Negotiator for Your Real Estate Deal is crucial.

Market your home by advertising in publications, mailings, brochures and internet sites

Internet marketing is key

Make sure you ask your listing agent what tools they will use to market your home. Over 85% of today's homebuyers start their search on the internet. Find out if your agent has a solid internet marketing plan to sell your home.

Make unilateral offer of cooperation and compensation to other brokers in any MLS deemed appropriate

In Northern Virginia and D.C., Metropolitan Regional Information Systems (MRIS) operates the multiple listing service. Your home needs to be on the MLS for the widest exposure to other agents and brokers who will bring buyers to your home. In the majority of cases, it will be another agent or broker who finds the buyer for your home. Your listing agent should provide an attractive description and multiple photos and virtual tour on the MLS so that agents and buyers can find your home. Click here to search the MLS for homes.

Place "for sale" signs on your property

Just another form of advertisement and exposure. (Not available in all locations).

Show your home during reasonable hours and accommodate other agents to show your home

An electronic lockbox provides the easiest way to allow access. However, you have the right not to be disturbed during dinner, late at night, early in the morning, or while you are in the shower!

Present all written offers or counteroffers in a timely manner

Emphasis on the word "ALL." It's your choice what offer you decide to accept or reject. The broker cannot withhold offers from you. In real estate, time is always of the essence. If a buyer's offer for your home is not presented to you in a timely manner, that potential purchaser may move on.

Account, in a timely manner, for all money and property received in trust by Broker, in which you have or may have an interest.

You have a right to know where your money is being held.

Maintain the confidentiality of your personal and financial information

Keep it confidential

Anything you tell your listing agent will be kept confidential. Even after the transaction is over or the brokerage relationship is terminated. This duty is very important. Don't be afraid to discuss important details of your personal and financial information with your listing agent. This information will be very important for them to assist you fully in selling your home.

To inquire about selling your Northern Virginia or D.C. home, please call me at 703-626-0715 or e-mail me at brian@brianblock.com for a confidential appointment to discuss your needs.

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If you plan to purchase or sell a home in the Northern Virginia or D.C. area,
you can visit my main Northern Virginia & D.C. real estate website at www.brianblock.com.

Posted by Brian Block -- Northern Virginia & D.C. Real Estate on 12/15/2007 10:30 AM

Comments (41)

listing agent, listing agreement, selling your home in northern virginia, broker duties, northern virginia real estate, brian block

41 Comments on Selling Your Home -- Know the Broker's Duties

DEC

2007

Well, Brian, you pretty much covered the whole picture! And, of course, my fave is the negotiating piece. I'm about to make a call to a colleague that will include a little tutorial.

Brian, this is a very good list as far as it goes, but you left out what is probably the most important service the broker does. That is shepherding the transaction through from acceptance to closing. This is where most transactions fail, especially FSBO transactions. The greatest service you bring to the seller is a smooth transaction that closes and doesn't leave your seller in a position to be sued later by an unhappy buyer.

Bill Roberts

Yes this is what we do. Great post and I hope some consumers read the information.

Your post is a constant reminder of our obligations. It's always good to hear and see because so often we find ourselves on autopilot.

Brian: REALLY good overview. I've not seen it spelled out quite this well before. A lot of agents need to read this...just as much as the public. GOOD STUFF!!!

Good summary...points that should be in a CMA...

Everyone can learn from your post. If not learn, remember our responsibilities. Our clients rely on us to do our job and sometimes we think about what is convenient to our schedules and not what we need to do. Thanks for the reminder.

Brian - Great information for your anybody considering selling their home in your area. Anybody working with you will be in great hands. You know your stuff well and your legal background is an extra bonus.

This is a great informational post and something that we all need to have in the back of our head to pull out with each listing. I've bookmarked and will revisit it just as a reminder. Thanks for sharing.

Brian- you used the word Broker a lot....did you get your license yet? Seriously, this is well put together, and shouldn't leave any doubts as to what is expected :) :)

Great info and criteria and such....and you will no doubt be the best broker in alexandria!!!

Excellent information for consumers, Brian. You answered questions they probably didn't even know they had.

DEC

2007

Great Post! I think you covered it very well. The only issue that I add is that I am not a Property Manager who will cut the lawn, paint, turn the water main off/on, etc. Since most of the properties here in Provincetown are second homes, I always recommend that my Clients hire a Property Manager who is well trained at handling those issues. Based on what I have heard and read here on A/R, many Agents get themselves roped into doing many things well beyond marketing and selling property.

PATRICIA: Thanks for your comments. I agree that negotiating the contract and making sure that the deal gets done is one of our most important duties and services.

BILL: I agree with you that shepherding the deal from contract to closing is very important. In fact, I point out to all my clients that contract acceptance is where all the real work just starts. This bit was implicitly included in my post where it says "Negotiate the contract and assist in consummation of the sale." Thanks for your comments.

REBECCA: Thanks for your comment and compliment.

LATONIA: Thanks for your comment. A reminder for agents and brokers and information for consumers. I hadn't expected this post to serve as a reminder for agents, but am glad that others find it to be such.

ELIZABETH: Thanks for your gracious comments. I appreciate your kind words about the post and do hope that many will read it.

DIANE: Thanks for your comment.

TERRY: Thanks for your comments. I'm surprised at some agents who don't realize or know the responsibilities that they have to their clients. It's spelled out pretty clearly in the listing agreement and buyer's broker agreement.

BILL: Thanks for your comments and your overwhelming praise.

ROSEMARY: Thanks for reading, commenting and bookmarking the post.

KATHY: Thanks for your comment. I'm using "broker" in the general sense, since the listing while signed with the agent does in fact belong to the broker. I'll have my broker's license in February, after I complete one last series of classes on appraisal. Virginia requires 180 hours of classes prior to taking the broker's exam, so I've been in class one day a week since August.

SALLY: Thanks for your comment and the compliment. :)

MARGARET: Preemptive information for potential clients. They should know their rights and our duties upfront.

RICK: Perhaps I should do a sequel on what not to expect from your broker. I agree, that although there are many things that we do and many that we are obligated to do, there are just somethings that we will not do and those should also be spelled out to our clients upfront so that they do not come to expect such services.

Brian - Great advice for anyone considering listing a home on their own. Thanks for such an informative post.

TOM: Thanks for your comment.

Brian-this a very clear post for consumers. Well written and I absolutely love that way you have put it together. This particular sentence is sooooooo important: Anything you tell your listing agent will be kept confidential. Even after the transaction is over or the brokerage relationship is terminated. Many consumers and agents think once the transaction is over, the whole deal is open to conversation. My clients are so important to me and my goal is to keep them as my clients and friends for life. Truly.

Nice post, well put together and it contains a lot of useful information for the consumer.

JULIE: Thanks for your comments and compliments on my post. I truly believe that it is incredibly important for every client to understand the documents that they are signing before they sign them. That's why I review the listing agreement and the purchase contract with everyone during their first appointment.

KELLY: Thanks for the compliments.

Brian- Great post for your area and your laws and duties. Here we must disclose all material defects known or possible material defects to any buyer even when we represent the seller. We do not have Dual Agency anymore. It it now assumed that we are transaction brokers unless otherwise noted. We no longer need to disclose representation because of this assumption. Katerina

DEC

2007

Brian, It's good to know there are still people in the area who can state broker duties. As you know, we've just come out of a period where obligation was a non-existent word, Karen

Brian. This is great material and presented so well any one researching on their own would be enticed to stay and read on...I hope this reaches potential sellers as it's quite comprehensive.

KATERINA: Thanks for your comments. We also have to disclose all known material defects concerning the property. I knew about Florida's transaction broker scenario. It's interesting that you don't have to disclose representation.

KAREN: Thanks for your comments. I'm sure that there are plenty of agents running around who have no idea, but the agreements and contracts are always a good starting point for all rights and obligations and what any judge will look at should a broker and client end up in court.