In New Jersey, I have found that consumers often find it difficult to understand the difference between the various roles which may be played depending on their choice of a particular real estate agent.
Even though the New Jersey Real Estate Commission requires a real estate agent to provide the New Jersey Consumer Information Statement(C.I.S.) to a prospective customer (or possibly client), the verbal explanations accompanying the C.I.S. vary widely and most consumers admit they come away confused about "agency relationships".
The two tables I put together below try to provide a clearer explanation of the "representation provided" and the "activities performed" from the perspective of a Home Buyer in New Jersey.
As you can see below, depending on the role which must be played by their real estate agent, a Home Buyer is owed significantly different services by their real estate agent.
Representation Provided | Seller's Agent | Disclosed Dual Agent | Transaction Broker | Buyer's Agent |
| Yes | - | - | - |
| - | Yes | - | - |
| - | - | Yes | - |
| - | - | - | Yes |
Activities Performed for a Home Buyer | Seller's Agent | Disclosed Dual Agent | Transaction Broker | Buyer's Agent |
Provide basic facts about properties (seller's asking price, features, and amenities) and sources of financing. | Yes | Yes | Yes | Yes |
Show homes in the Multiple Listing Service. | Yes | Yes | Yes | Yes |
Submit a purchase offer and convey the Seller's response Back. | Yes | Yes | Yes | Yes |
Respond honestly and accurately to questions. | Yes | Yes | Yes | Yes |
Disclose material facts known about the property. | Yes | Yes | Yes | Yes |
Offer property without regard to race, creed, sex, religion, or national origin. | Yes | Yes | Yes | Yes |
Advise in choosing an attorney. | Yes | Yes | Yes | Yes |
Confirm needed correction/repairs have been completed. | Yes | Yes | Yes | Yes |
Accompany on a final walk-through inspection of the property. | Yes | Yes | Yes | Yes |
Tell the Seller everything they know about a Home Buyer including their financial situation and motivation for buying. | Yes | Depends, if Buyer agrees. | Yes | No |
Guarantee in a written agency agreement to represent and work for the home buyer only. | - | - | - | Yes |
Search for available properties, not just Multiple Listed properties, but also "For Sale By Owner", "For Sale By Developer/Builder", and sometimes even locate properties that are not yet on the market. | - | - | - | Yes |
Locate and show properties, pointing out not only strengths, but also weaknesses, potential problems, and factors that may impact resale of the property. | - | - | - | Yes |
Discuss the price the Seller is asking, the reason they might be selling, the price they paid, how long or how many times the property has been on the market, and any concessions (in price or terms) that the Seller may be willing to give up. | - | - | - | Yes |
Develop an estimate of comparative market value for the property, and assist in developing an offering price. | - | - | - | Yes |
Review and interpret comparable property values. | - | - | - | Yes |
Advise regarding other offers on the property. | - | - | - | Yes |
Help determine the need for professional property inspections and any warranties. | - | - | - | Yes |
Identify any information detrimental to the Seller, or which might give an advantage to the Home Buyer. | - | - | - | Yes |
Consult throughout the entire negotiation process offering advice and information regarding counter offers. | - | - | - | Yes |
Negotiate only on behalf of the Home Buyer, be their advocate, and negotiate to get them the best deal in terms of price and terms. | - | - | - | Yes |
Assist in independently evaluating the most favorable financing. | Maybe | Maybe | Maybe | Yes |
Supply financial information about neighborhood properties and value trends. | - | - | - | Yes |
Advise on the final walk-through inspection of the property. | - | - | - | Yes |
Attend the closing and represent the Home Buyer's best interests, as necessary. | - | - | - | Yes |
Keep everything the Home Buyer tell us absolutely confidential and work in the best interests of the Home Buyer. | - | - | - | Yes |
For more information contact:
Pamela Bell, Broker, BUYER'S ADVISORS Pam@BuyersAdvisors.com
or visit my website at: http://www.buyersadvisors.com/
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