I'm a bit late in posting this, but welcome to all our new agents! The Real Living family has grown, and we are excited about the new additions AND our new location at 1817 Green Circle.
Welcome Abigail Davis, Andy Deal, Chasity Luke, Laura Keller, Elizabeth Norman, Thomas Peacock, Karen Pleasant, Jennifer Stracener, and Melinda Thomas.
Sunday, April 15, 2012
Sunday, March 4, 2012
Advice from a true Real Estate closer!
If you are a fan of ABC's sitcom "Modern Family," then you know the character of Phil Dunphy, a real estate agent. In this clip from the show, Phil can teach us all a thing or two about closing the deal. Enjoy!
-- Jeannie Lugo
jeannie@ronborders.com
Friday, January 13, 2012
Paying it forward
One Saturday morning, I received a text message from Susan
(not her real name), asking to see a house for the second time, now that
Susan’s husband was in town. I met them at the house (not my listing), and we
looked at it. The following day, Vickie Ordway called me, and she told me the
back story to that house viewing: The house was listed with Vickie’s company,
RE/MAX. That Saturday, Susan had first called RE/MAX, and since Vickie was on
floor call, Vickie prepared to arrange a viewing of the house. But Susan let it
slip that she had already seen the house. Vickie asked her who had shown her
the house, and Susan told her it was me, and, in fact, I had shown her several
houses.
It was then that Vickie did something that surprised me: she
didn’t ask Susan if she had a Buyer’s Brokerage with me – that is truly what I
expected her to do. And then, when Susan would have said no, I would have expected
that Vickie would show Susan the house, and hope to be the one to put in an
offer on her behalf. Because, after all, I do not have a Buyer’s Brokerage with
Susan. That is the letter of the law.
But this is what Vickie actually did: she told Susan that it
sounded like to her that she was already working with a Realtor, and she should
call me first to see if I could show her the house a second time. And that is
why Susan asked me that Saturday morning to view the house a second time.
Monday morning, Vickie called me to share what had happened.
She said she was sick and tired of buyers taking advantage of Realtors’ time
and efforts, and she was not going to allow that to happen anymore. Vickie
respected me with that deed; she respected our chosen profession more than she
wanted to take a cheap chance at a quick commission.
That really made an impression on me.
A few days later, I received not one but two emails from an
interested buyer. He wanted to show me how sincere and eager he was to view one
of my listings. I called him, and during our conversation, I asked him, was he
working with a Realtor? “Well, not really, I mean, there is one Realtor who has
shown me a few properties, but we aren’t really working with each other,” was
his response. I told him it did sound like he was working with a Realtor. Then
he told me that the Realtor (with whom he was not working) was going to meet
him that evening with some more properties. I told him he needed to stay with
his Realtor, and talk to him about signing a Buyer’s Brokerage, to take full
advantage of everything his Realtor would be able to do for him.
But I didn’t follow through like Vickie did with me, and I
am sorry for that. I didn’t ask the buyer who that Realtor was. I should have;
and then I could have called that Realtor and shared with him what the buyer
said to me, and my response – that I respected him; that I respected our chosen
profession more than the possible cheap chance at a quick commission.
So, Vickie: I am writing this letter instead, to “pay it
forward.” Thank you for what you did that Saturday morning.
Aija Shrader
aija@ronborders.com
www.AijaShraderRealtor.com
aija@ronborders.com
www.AijaShraderRealtor.com
Wednesday, January 11, 2012
The Buyer Brokerage Agreement -- Should You Sign One?
The Buyer Brokerage Agreement (or BBA), is a contract
between a buyer and a real estate agent. In it, the buyer agrees to
work only with this particular real estate agent. If the buyer goes
with another agent, they may still owe a commission to the real estate
agent with whom they have a contract. The real estate agent agrees to
work diligently to find a suitable home that meets the buyer's
requirements. As it's a four page document, there are a lot more
specific things in there, as well.
As a buyer, should you sign one?
First off, there is no law that says a buyer must sign a BBA. And many real estate agents will work with a buyer without the contract. But both sides are vulnerable without one.
The real estate agent is vulnerable because an unscrupulous buyer may abuse an agent's time and gas money, demanding to be shown house after house, then going with a "friend in the business" rather than with the agent who worked so hard for them. From a buyer's perspective, of course, there is no downside to doing this. They don't have to pay the agent for any of this time. They don't have to "bother" their friend-in-the-business with house-looking, but still get to send some money their friend's way.
So, why should a buyer sign a BBA? What's the difference between a buyer who signs the contract and a buyer who does not?
It's simple. The buyer who signs the BBA is a client; a buyer who does not is a customer. There is a legal distinction between these two in the state of Georgia. A client is someone with whom an agent has a contractual relationship. A customer does not.
An agent owes a client several duties, including these:
But is it a material fact if I know the seller is on the verge of bankruptcy, is desperate to sell, and would take any reasonably fair offer?
Hmmm........
Well, any buyer would say that's a material fact. It's a fact that, if known, would affect the price the buyer is willing to offer. But the law says it's not a material fact. Therefore, it doesn't have to be disclosed.
And here is where the duty of loyalty comes into play, a duty that is owed only to the client. Loyalty requires that we act in the interests of our client -- thus, if I know the seller is desperate to sell, I will tell my Buyer-Client of that, and allow them to make a lower offer.
But I would never tell that to my customer. But why not? -- why not tell the customer, and ensure a sale that would put a commission in my pocket?
Because in Georgia, real estate agents work for the client, the person who signed a contract. In a real estate transaction where the buyer has not signed a BBA, the client is typically the seller, who has usually signed an Exclusive Listing Agreement with a real estate agent (even if that agent is not me). Georgia laws establish this indirect relationship with the seller through various means which are too complicated to discuss here -- suffice it to say, the relationship exists, absent a BBA with the buyer.
I would be breaking the duties owed the Seller-Client -- including the duty of loyalty, and the duty to keep secrets -- if I tell a Buyer-Customer about the seller's need to sell. But if my buyer signs a BBA -- if my buyer is a client and not a customer -- then I would be breaking my duty of loyalty if I don't tell my Buyer-Client.
This works the other way, too. What if I know that my buyer is willing to go higher? -- they really want this house, but they are starting off with a lower offer, just to see if the seller is willing to accept. Should I tell the agent representing the seller this information?
A seller would obviously consider that a material fact -- the law, however, does not. Thus, whether or not to tell comes down to the contractual relationship between the agent and the buyer. If the buyer is a client, I owe the duties of Loyalty and Secret-Keeping -- and I will not tell. But if the buyer is merely a customer, I owe the duty of Loyalty to the seller -- and I should tell.
These are just a few examples of how the Buyer Brokerage Agreement can work for today's real estate buyer. There's really no downside to signing a BBA, and many good reasons to do so. A buyer should interview several real estate agents, find one he or she is comfortable with, then happily sign on the dotted line -- then, you can be absolutely certain that the agent is working for you, the client.
-- Jeannie Lugo
jeannie@ronborders.com
As a buyer, should you sign one?
First off, there is no law that says a buyer must sign a BBA. And many real estate agents will work with a buyer without the contract. But both sides are vulnerable without one.
The real estate agent is vulnerable because an unscrupulous buyer may abuse an agent's time and gas money, demanding to be shown house after house, then going with a "friend in the business" rather than with the agent who worked so hard for them. From a buyer's perspective, of course, there is no downside to doing this. They don't have to pay the agent for any of this time. They don't have to "bother" their friend-in-the-business with house-looking, but still get to send some money their friend's way.
So, why should a buyer sign a BBA? What's the difference between a buyer who signs the contract and a buyer who does not?
It's simple. The buyer who signs the BBA is a client; a buyer who does not is a customer. There is a legal distinction between these two in the state of Georgia. A client is someone with whom an agent has a contractual relationship. A customer does not.
An agent owes a client several duties, including these:
- Loyalty -- the interests of the client come first.
- Obedience -- the agent must follow all the client's legal and ethical instructions.
- Inform Client of Material Facts -- the client has a right to know certain information which may affect the offer or the purchase of the home.
- Honesty -- the agent will deal honestly and ethically with the client.
- Fairness -- the agent will deal fairly with the client, including following all applicable laws and ethical rules.
- Secret-Keeping -- the agent will keep secret any information the client tells them, so long as that information is not a material fact that must be disclosed.
But is it a material fact if I know the seller is on the verge of bankruptcy, is desperate to sell, and would take any reasonably fair offer?
Hmmm........
Well, any buyer would say that's a material fact. It's a fact that, if known, would affect the price the buyer is willing to offer. But the law says it's not a material fact. Therefore, it doesn't have to be disclosed.
And here is where the duty of loyalty comes into play, a duty that is owed only to the client. Loyalty requires that we act in the interests of our client -- thus, if I know the seller is desperate to sell, I will tell my Buyer-Client of that, and allow them to make a lower offer.
But I would never tell that to my customer. But why not? -- why not tell the customer, and ensure a sale that would put a commission in my pocket?
Because in Georgia, real estate agents work for the client, the person who signed a contract. In a real estate transaction where the buyer has not signed a BBA, the client is typically the seller, who has usually signed an Exclusive Listing Agreement with a real estate agent (even if that agent is not me). Georgia laws establish this indirect relationship with the seller through various means which are too complicated to discuss here -- suffice it to say, the relationship exists, absent a BBA with the buyer.
I would be breaking the duties owed the Seller-Client -- including the duty of loyalty, and the duty to keep secrets -- if I tell a Buyer-Customer about the seller's need to sell. But if my buyer signs a BBA -- if my buyer is a client and not a customer -- then I would be breaking my duty of loyalty if I don't tell my Buyer-Client.
This works the other way, too. What if I know that my buyer is willing to go higher? -- they really want this house, but they are starting off with a lower offer, just to see if the seller is willing to accept. Should I tell the agent representing the seller this information?
A seller would obviously consider that a material fact -- the law, however, does not. Thus, whether or not to tell comes down to the contractual relationship between the agent and the buyer. If the buyer is a client, I owe the duties of Loyalty and Secret-Keeping -- and I will not tell. But if the buyer is merely a customer, I owe the duty of Loyalty to the seller -- and I should tell.
These are just a few examples of how the Buyer Brokerage Agreement can work for today's real estate buyer. There's really no downside to signing a BBA, and many good reasons to do so. A buyer should interview several real estate agents, find one he or she is comfortable with, then happily sign on the dotted line -- then, you can be absolutely certain that the agent is working for you, the client.
-- Jeannie Lugo
jeannie@ronborders.com
Welcome...
Welcome to our blog. Real Living Realty Advisors is a real estate firm in Valdosta, Georgia. Whether you are PCS into Moody Air Force Base, going to school at Valdosta State University, Georgia Military, or Wiregrass Tech, or coming to work for one of our many wonderful businesses, Valdosta has a little of everything for you.
For many, a real estate purchase is one of the biggest and most complicated financial decision of their lives. We are here to help. Whether you are a buyer or a seller -- or a real estate professional -- this blog will offer information to help you make some of the many decisions facing you.
If you need help buying or selling your home, please contact our office at 229-333-4622.
For many, a real estate purchase is one of the biggest and most complicated financial decision of their lives. We are here to help. Whether you are a buyer or a seller -- or a real estate professional -- this blog will offer information to help you make some of the many decisions facing you.
If you need help buying or selling your home, please contact our office at 229-333-4622.
Subscribe to:
Comments (Atom)