Engle Realty: Louisiana Real Estate
Residential & Commercial Real Estate Sales and Rentals
The start of the real estate transaction begins with agency. What is agency? How does agency affect me? What is a designated agency?
Agency is the first important thing to know about when working with a real estate agent. Agency in itself is a business relationship. This business relationship is a beneficial relationship for you, the buyer. You have this relationship with the agent that you work with. By having someone work for you, that person would work as your agent, which is referred to as a designated agent. Your Engle Realty agent will be the person who will help you on your pathway to home ownership.
What is so important about this agency relationship?
This relationship is important because it is a key factor when buying a home. This real estate relationship is a structured, organized, and established relationship that ensures that there is someone who knows what they are doing when looking out for your bests interest! Essentially, without agency, you'd be by yourself and left up to your own means to protect your interest. Your Engle Realty agent will be there to protect your interest.
As your agent, your Engle Realty agent will be experienced in the local real estate market, such as Prairieville, Baton Rouge, Denham Springs. Engle Realty agents are professionals in their field, which is only earned through experience, education, and research. And from that your Engle Realty agent can represent you and help ensure that you get what you pay for.
So it is here with agency that everything is started. You and your Engle Realty real estate agent agree with each other that you will be in an agency relationship. This business realationship usually is formed by signing an Exclusive Right to Represent form agreeing to this representation, however it can be a verbal expression with each other under certain circumstances. Either way, you both are in an understanding that your Engle Realty agent is looking out for you and protecting you (and ultimately your wallet). It is through the signing of this real estate form that your Engle Realty agent becomes your designated agent. This form is your commitment to your Engle Realty agent to work exclusively with this agent. This also is a good-faith commitment on your part as a buyer to compensate your Engle Realty agent in the event of a sale where the seller does not compensate your agent at the act of sale. While this is rarely the case, since your Engle Realty agent will almost always be paid their commission by the seller upon the purchase of real estate, this can happen if you are buying a house For Sale By Owner whereas the seller refuses to compensate a buyer's agent. Of course, your Engle Realty real estate agent would inform you of the need to come out of pocket in the transaction prior to any contract negotiations so that you are aware of the situation. This situation rarely arises since sellers who list with real estate companies almost always compensate buyer's agents and since F.S.B.O. sellers are usually accomodative to buyer's who use real estate agents.
In return to the buyer's commitment to compensate their Engle Realty real estate agent and to work exclusively with this one agent, the buyer can expect to receive the following benefits:
Disadvantages a buyer can anticipate when not using an Engle Realty agent exclusively are abundant however one example of when it can be a detriment to non-exclusive buyers without an agency relationship is when buyers give personal information to the wrong party. Buyers often will disclose certain details to another real estate agent that is not their designated agent (i.e. the listing agent) who is working for the seller. Buyers may often tell this information to the seller directly. The seller or seller's agent can then use such information to the seller's advantage which will likely end up costing the buyer money. (This is not to say that the seller's agents are intending to take advantage of the other party, but real estate agents do have a goal of getting their clients the best deal possible, which just so happens to be in opposition to the other party.) buyer, could ultimately have put yourself in a position where you lose out monetarily. And it is for this reason that agency exists. The agency relationship exists so you can go to your Engle Realty reale estate agent and disclose to your exclusive real estate agent everything while knowing that you can trust your agent not to tell the seller or the seller's agent.
Dual agency is a type of real estate representation that isn't as common. It would come about if the buyer and the seller both were clients of a single Engle Realty real estate agent. That agent would be acting as an agent for both the seller and the buyer. In this instance, that agent would still owe duties to both clients. That agent couldn't discuss with either clients the motivations or prices of either clients. That agent would also treat all clients with honesty. Basically, the agent would provide information for both clients so that they can make an informed decision based on the real estate market knowledge. One difference in dual agency is that negotiation isn't as much as a factor. Since there isn't another agent for the agent to negotiate with, each client would have to make a decision based on the facts that the agent provides them and would negotiate through their Engle Realty real estate agent. Evenstill, the Engle Realty real estate agent provides the added benefit of acting as a filter of confidential information from going from one party to the other, which is a benefit the buyer or seller could not provide by themselves. Another way to look at this is that the dual agent would act as a mediator between the clients conveying the non-confidential information.