In Arkansas, prior to 1994, the "policy of agency" (who an agent represents) was that both the listing agent and the selling agent represented the seller (who paid the commission). Today, the listing agent represents the seller, and the buyer's agent represents the buyer. For in house sales we have Dual Agency. Buyers have a choice! Sellers still pay the commission but it is paid to the brokerage of the listing agent. That brokerage in turn pays a portion of the received commission to the brokerage of the Buyer's agent. The individual agent is then paid on whatever level has been agreed upon in their office contract. Agents have a choice! Agents can elect to represent either seller or buyer, or both if the situation arises wherein the listing is one that is listed by the buyer's agent's office. That's called a dual representation. In such a case, the agent pledges fairness and honesty.
| I've been asked many times what my policy is, and to clarify whom I represent when I have a reply to my offer of service. Here is my policy:For those folks transferring, relocating and asking me for information on homes, I represent the Buyer. How do I do this, and what is covered in this representation, you ask? These are my guidelines called my Standards of Care... A "CARLOAD" of care goes into my representation!
|Standards of Care - A Carload(what I feel I owe to my Buyer!)
|Benefit to the Buyer:||Benefit to me as their agent:|
Will the Buyer need to sign an agreement?
It will not be mandatory for the Buyer to sign an agreement with me at initial contact, although I would be happy to do so. I extend much effort, time, expertise, loyalty and education to be singularly informed on behalf of my buyers. However, I would hope that with such good service and representation, a buyer will be loyal to me! Arkasas law requires real estate agents to clearly disclose to all parties in a transaction which party(s) he or she is representing at contact and in writing as soon a practical. Before an offer is written, it will be necessary to sign an Agency Agreement stating who I represent. Agency representation is also in the verbiage of the purchase contract.
What about new homes and new subdivisions?
Yes, I represent the Buyer as well. I include new homes and new subdivisions in my showings of homes throughout the area. Unlike some areas of the country where builders do not cooperate with realtors, builders here seek our assistance since we sell 70% of their product. Many times incentives are offered to realtors for their buyers.The site salesperson represents the builder, so a Buyer should have representation.The policy in Arkansas is to have the realtor present when viewing the new homes. It is tempting when first arriving to cruise the new subdivisions. In order to have Buyer representation, nothing must be registered or signed without your realtor. If you are just looking, say so, and you may not be asked to register yourself. If asked, state that you are working with a realtor and will return with that realtor if interested in that subdivision.In the case of new homes, understand that the builder billboards many times state a price, i.e. $140s. It may have been put up at the opening of the subdivision and have appreciated since then. There are many options, such as a covered patio, a fireplace, upgrades that are in the models, and/or a lot premium. It goes up quickly from there.I have a MLS print-outs of all the new subdivisions that list the areas, subdivisions, price, square footage, bedrooms, garages, lot size and location that I give to my Buyers. This will help you in determining what exactly that subdivision is about. Please ask me for it when you arrive so that you will be informed!Caveat Emptor no longer is enough to protect a buyer. Each state has its differences. An escrow on the East Coast means something different on the West Coast. There are inspections, disclosures, deadline dates, title work, loan procedures, and recommended use of professionals. Representation for the Buyer is very important today!
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