DCP: Working with a Seller's Agent

Working with a Seller's Agent

 
 
 
 
 
 
 
A Seller’s agent or "listing agent" is a person who represents the interests of the seller in a real estate transaction. The real estate property owner -- or seller -- is the client. The agent’s duties to the seller are: undivided loyalty, obedience, diligence, disclosure, confidentiality, accountability and reasonable skill and care.
 
 
Choosing a Seller’s Agent
 
  • Ask for recommendations from people who have just sold a home in your area, or call a local real estate office and ask the manager to recommend an agent who specializes in your type of property and community.
  • Visit a few offices. The real estate office itself can tell a lot about the agents you may end up working with. Is the office attractive and organized-looking? Is it easily accessible and open 7 days a week?
  • Ask if the agency is a member of a multiple-listing service - that will allow your listing to be seen by all other agents and their buyers.
  • Invite the prospective agent to your home for an introductory meeting. Since you will be spending a lot of time with this person, it's a good idea to establish trust and a solid working relationship early on.
  • Put together an information sheet that lists your home's features and best qualities, especially those that people might otherwise overlook. Give this to the agent, who, if hired, can later use the information to write an attractive listing to help sell your home.
  • Interview several prospects, and ask each to clearly outline to you in writing what their marketing plan will be for your property. Ask the agent how he or she would establish a price and promote your home. Compare the analyses and get a realistic range for your selling price. Don’t fall for overenthusiastic, inflated estimates.
  • If you interview an agent and are unsatisfied with his or her plan or personality, merely thank the agent for taking the time to meet with you, and repeat the process with another agent. 
  • Choose the agent who can offer you the services you need, and with whom you feel comfortable. In general, the more experienced the agent is, the better knowledge and tools they’ll have to sell your house.
  • Discuss and be clear about what is expected of you and what is expected of the agent as you begin the joint process of selling your property. Get everything in writing! 

 
The Seller's Agent Process
 
During the listing process, the Seller's agent:
  • Prepares a competitive market analysis of the seller’s home or property
  • Develops and implements effective marketing strategies for the seller, including helping to establish asking price, staging, and positioning of the property
  • Informs the seller what prices other homes and properties have sold for in the area.
 
 During the negotiating process, the Seller's agent:
  • Presents all offers and counsels seller on what price to accept
  • Negotiates exclusively on the seller’s behalf
  • Updates the seller on market conditions
  • Suggests that the seller contact an attorney for an estimate of closing costs 
 
During the closing process, the Seller's agent:
  • Works closely with the seller to assure a smooth closing
  • Monitors all dates, events and requirements for the seller
  • Represents the Seller’s interest at the buyer’s walk-through inspection
  • May attend the closing with the seller.
 
 
Important Things to know While Working with a Seller’s Agent
 
When you hire an agent to help you sell a home, the agent must be working for you -- and only for you.
  • Every real estate agent’s commission is negotiable. There is no set percentage or commission to which an agent is entitled. Before signing the contract, you can ask the agent to take a smaller commission than what he or she proposed. The agent is free to accept or decline your offer.
  • The duration of your agreement with the agent is also negotiable. 
  • Whatever terms you settle on, be sure you understand exactly what you will be getting in return for that commission. If you negotiate a smaller commission with the agent, the agent may want to exclude some services that he or she would normally provide. Make sure you will be entitled to all services that are most important to you, and be sure these are in writing.
  • Before signing with an agent, get answers to all your questions and be sure you are comfortable with the agent and that you understand and agree with all the terms of your contract agreement. 
  • IMPORTANT! A contract signed between you and the agent is legal and binding on all parties. There is no cancellation of the contract once it is signed.
  • The contract must be in writing and have a beginning and an ending date, be signed by all parties to the contract and you must receive a signed copy. 
  • Do not sign any blank documents or papers that you don't understand. If you do not understand the documents, contact an attorney for assistance.
  • Your real estate agent may indicate that they also represent a client who might be interested in buying your home. Before proceeding, the agency is obligated to provide both you and the buyer with a "Dual Agency Consent Agreement" form for you to sign.  By signing this form, you agree that your real estate agency is free to represent both you AND the buyer in the deal. The consent form outlines the process to be followed to be sure that the sale is completely fair to both the seller AND the buyer. You do not have to agree to Dual Agency if you feel it is not in your best interest. You should not sign the consent form in advance -- only if and when a buyer being represented by your agency is ready to make an offer.
  • Time spent with an attorney who can oversee your paperwork and advise you on all legal aspects of the deal is time and money well spent. Real estate agents and brokers are prohibited from engaging in the practice of law and must not give legal advice.
  • If English is your second language and you are unclear about the terms of the contract, contact an interpreter to assist you prior to signing.
  • There is no rule that you, the seller, must accept any offer to purchase, nor are there requirements as to which offer or counter-offer you must accept for your property. You have the right not to sell if you so choose, as long as your intent is not to promote discriminatory practices. However, a commission may be payable to your agent if you decide not to sell in the face of a ready, willing and able buyer, depending on the terms of your listing agreement with your agent.
  • Once a buyer places a deposit on a property, the funds must be held in a separate escrow account by your agent, and cannot be co-mingled with the agent’s other business or personal accounts. The home buyer's check and/or money order should be made payable to the brokerage company -- not to an agent or agency employees.
  • You have the final word on any decision. Do not let an agent pressure or hurry you into making a choice that you have not thought out or do not want.
 

Content Last Modified on 6/17/2009 2:03:58 PM