First Initial Contact…..
One of the first that happens (or should happen) when you come in contact with an agent during a real estate transaction is they should explain to you agency and how it may impact you in the transaction. This is a really important part of the process, and every agent should do this, even if its not your agent.
NC Real Estate Commission
The NC Real Estate Commission requires this explanation. The commission created a brochure and a form that explains this. The brochure and form are ofter referred to as “Working with a Real Estate agent” brochure or abbreviated WWREA. This same form can be found in other states, but because I work in the Northeast NC region (Camden, Currituck, Elizabeth City, Hertford, Perquimans, Edenton) my information in this blog post will be specific to NC. The most recent form released in July of 2022 does a great job of explaining how this impacts you as a buyer and a seller.
Show me the houses…..
Every agent has their way of explaining agency to clients and customers. My favorite way is through the similarities to a sports agent. I think most of America understands how a sports agent represents their client. The main objective of a sports agent is to get the best possible deal for their client. They are working for the start and should always have their best interest at heart. The athlete is considered the Principle…and their agent should do what is best for their client. The same is true of a real estate agent. Their job is to make sure their client is getting the best possible deal.
Who’s working for who?
The client should have all the decision making ability. The agent is supposed to advise and guide based on their expertise and knowledge, but should never make a final decision. Thats the job of the client. The client makes the decision and the agent carries it out. Agents have to be given permission to act on the clients behalf. In next weeks video and blog post, we will talk about this process.
An ethical agent should always make it crystal clear who their client is. If you are a seller and you are speaking with the buyers agent, it should be no question in your mind that the agent is working on behalf of the buyer, not you. Always remember who is working for who!
I’ve got the power
There are different types of agency. One that most people are familiar with is “Power of Attorney”. This is a legal process in which a person is given the ability to act on behalf of someone else in all aspects of their life. This is a “Universal Agent”. In a few weeks we will actually talk more about Power of Attorney. This agency agreement is common with military families that have one spouse deployed. While deployed, the spouse who is not deployed can sign paperwork and legal documents on behalf of the deployed spouse. That signature is just as valid as the actual person’s signature. This is VERY powerful.
A real estate agent is a special agent and can only act on behalf of their client for a specific area of their life (real estate).
Coming up
In the next couple of weeks, we will be diving in a little deeper on the working with a real estate agent brochure. There is a also a video on my YouTube page where I walk you through the brochure step by step. It’s a little older video (I am working on an updated version) but the information is still accurate.
I hope you are finding these blog post and videos helpful. I love the educational process of real estate and I hope my clients (past, present and future) find some value in them. Please help me share this resource with others. I am sure there is someone in your circle of influence that is looking to buy or sell a home in the near future and the information on this site and my YouTube channel could be just the bits of information to make a difference for them. I’m standing by when you are ready to get moving!
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Chris Whitehurst
Inner Banks Real Estate
ChrisWhitehurst.com
252 312 2263