Agency, Buyer's Brokerage and Seller Agents

Buyer's Agent

• Promoting the best interest of the buyer.
• Fully disclosing to the buyer all facts that might affect or influence the buyer's decision to tender an offer to purchase.
• Keeping confidential the buyer's motivation for buying.
• Disclosing to the buyer all information about the willingness of the seller to complete the sale or to accept a lower price.

• Honesty
• Reasonable skill and care
• Disclosure of property condition defects.

Seller's Agent

• Promoting the best interest of the seller.
• Fully disclosing to the seller all facts that might affect or influence the seller's decision to accept an offer to purchase.
• Keeping confidential the seller's motivation for selling.
• Presenting all offers to the seller.
• Disclosing the identities of all buyers and all information about the willingness of those buyers to complete the sale or to offer a higher price.

• Honesty
• Reasonable skill and care
• Disclosure of property condition defects.

1. Understand there is a difference between what you need and what you want. Make sure you have a clear idea of both. While you may not need to buy quickly, you do not want to look for years, either. Transmit the information to the person you select to help you in your search. The person assisting you will be better able to help you zero in on what you want and reduce wasted time. This will reduce frustration.

2. Select a REALTOR. If possible work with someone you know or someone to whom you are referred. Also, there is a difference between a REALTOR and a real estate agent. REALTORS belong to a trade association that subscribes to a Code of Ethics that dictates conduct beyond the law. A real estate agent who is not a REALTOR is not obligated to this code of ethical conduct. Look for an agent who has furthered their education past the simple licensing requirements of the state. Usually they will have one of several nationally recognized designations:

Certified Residential Specialist, Certified Real Estate Brokerage Management, Graduate REALTORS Institute, Leadership Training Graduate, and Real Estate Alumni of Michigan are recognized by the National Association of REALTORS, most others are not. Remember, however, a designation does not make them a professional, it only means they have furthered their education. If you can find an agent whom you know and has furthered their education in real estate you will seldom be disappointed.

3. Understand that there is something called agency. This means that the agent you are working with has a contractual and fiduciary responsibility to one or the other parties in a real estate transaction. They can be buyers' agents or sellers' agents. It is possible that they could work for both parties and be called dual agents and in rare instances they may actually not work for either party and be called transaction coordinators. Do not let the notion of agency get in the way however of selecting the right agent. An exceptional agent who will listen to you and provide information and expertise is more valuable to you that what type of agent they are.

4. Be willing to share financial information. Your ability to buy a house will probably depend on your ability to get a mortgage. Despite what you and the seller agree to, if there is financing you will need to qualify for the mortgage you want. Knowing how much a lender will give you based on your income is good information to have when you start your search. It also will be important for the seller to know you are qualified when they consider your offer. Remember, however, there is no such thing as free money. Be wary of what sounds like a very low interest rate. Usually there are hidden costs that easily eat up any savings you think you are getting. Again, work with someone you know or to whom you were referred.

5. When it comes to writing an offer follow these guidelines.

• A generous deposit accompanying your offer could make the difference in getting the seller to seriously consider your offer.
• Always have the property inspected by a reputable home inspector.
• Always ask for the opportunity for legal counsel to review documents after everything is agreed to whether you have an attorney or not.
• If you really want a property do not be afraid to offer list price or better. Over the next few years a few hundred dollars will be forgotten as long as you bought the right house for you.
• Insist on closing papers before closing. There is nothing worse than last minute surprises.
• Ask for a title policy without standard exceptions. No one should object but you have to know to ask.
• Finally, sit back and relax. All of this can really be enjoyable if you know what you are doing or are working with someone who does.

• Prepare a list of local workers or companies that have done work on the house.
• Clean and dust all rooms.
• If painting is necessary, use light neutral colors that will make rooms brighter and larger. If the paint is okay, wash ceilings and walls.
• Torn or stained wallpaper should be removed and replaced with a neutral wallpaper.
• Worn or ripped carpeting should be repaired or removed. If there are hardwood floors underneath, make sure people know.
• Floors and carpeting should be clean.

• Make beds.
• Remove nicknacks and clutter.
• If closets are packed with clothes, remove as many items as possible. Make closets look large and neat.
• Open windows slightly and roll shades up three-quarters of the way to make the room brighter.
• Dust around ceilings, light fixtures and walls.
• In a child's room, leave a few toys on the dresser and stuffed animals on the bed to give the room a comfortable play atmosphere.

• Small chips in the tub or in the sink should be touched up with an epoxy enamel porcelain paint.
• Ceramic tile and shower doors will stay bright if wiped with furniture polish with lemon oil every week or two.
• Check under vanities for leaks.
• Organize your toiletries.
• Keep the vanity top clear except necessary items
• Money spent to remodel or improve bathrooms generally is recovered.

• Loose and broken drawers or doors should be repaired.
• Clean the oven, stove and under the sink.
• Clean the exhaust fan filter, ceiling fixtures and back-splashes.
• Repair non-working appliances
• Wood-finish cupboards can be cleaned and renewed using a wood furniture soap.
• If screws are stripped, put steel wool into the screw hole using a toothpick and then replace the screw
• A small bowl of fruit or flowers on the table adds a nice touch

• Remove nicknacks and excess furniture.
• Clean out fireplaces.
• Some flowers and plants add beauty and atmosphere
• Organize bookshelves.
• Open drapes and blinds to make the room look cleaner and brighter.

• Remove junk and organize.
• Stack spare storm windows and screens.
• If the basement leaks, get estimates for repairs. If you have the repairs done, get a transferable warranty.

• Rusted overhead doors should be repaired.
• A fresh coat of paint on finished garages enhances curb appeal.
• It is inevitable that you will have a garage sale or donate items you have accumulated over the years. Do it before you show the house. It will make the garage and house look more spacious.

• Clean windows.
• Planting flowers and trimming bushes adds appeal

1. Many purchase agreements must be signed at times when it is difficult to get immediate legal advice (such as, on a Friday evening, or the beginning of a long holiday weekend, when most law offices are closed.) A possible solution is for the signing person (buyer or seller) to qualify the acceptance of the purchase agreement (by the seller) or the making of the offer (by the buyer) on their lawyer's right to disapprove in writing within a short time. NOTE, HOWEVER, that allowing the attorney to cancel, if it has not already been a written part of the proposed agreement becomes a new condition. That means it becomes part of a counteroffer that must, in turn, be accepted in writing by the opposite party before it becomes contractually binding. NOTE ALSO that the time as well as the date of acceptance must be placed next to the signature so that the exact amount of time required for the attorney to cancel the transaction can be determined.

2. Facsimile signed documents? Are they as "legal" as the original? Some courts have held that signatures on facsimile-transmitted court documents in certain situations are the same. The "legal" answer to this question is to determine the intent of the parties. A rubber stamp imprint, an "X" mark, a facsimile signature on a facsimile document, or any other notation, can be treated as an "original" signature if that is what the parties intended. Accordingly, if the parties to a real estate purchase agreement intend the exchange of facsimile documents and signature to have the same validity as the original, the courts will honor that agreement. The prudent solution to the facsimile problem is to make clear in the Offer to Purchase what is intended. If the parties decide that facsimile signatures and documents are to be permitted say so clearly. Conversely, if the parties want to make sure that facsimile signatures are not treated as "original" signatures clearly say so, to prevent a judge from later ruling to the contrary in the absence of an express prohibition. As always have your lawyer check the language to be sure. If you have marketed the home right and have successfully navigated through the negotiations what else is there to worry about in getting your house sold? Plenty! Sometimes even the best deals fall apart during the processing of the loan. As it was with negotiating, the successful processing of a real estate sale depends on communication. All real estate sales have the potential to fall apart during the processing of the loan and the preparing of the paperwork for closing. It can be poor timing for mortgage approval, an unexpected problem with the appraisal, a lien that shows up unexpectedly on the seller's title or a federal tax lien registered against someone with the same name as the buyer. There are encroachments and easements that can surface on a mortgage survey, a homeowner's insurance policy that does not meet the needs of the mortgage company, or something that comes up at the last minute during the final walk through just prior to closing. Sometimes the payoff on the seller's mortgage is incorrect or a payment is not credited that should be. If the closing beyond the contract date there can be late charges. The potential for all these exists on each and every sale, even more unusual issues surface on an almost regular basis. By reviewing some of these problems when a home is first put on the market, many that involve the seller can be avoided. Likewise, proper counseling with a buyer can prevent buyer related difficulties. It helps to have good rapport with the title company, mortgage lender, survey company, insurance agency, closing department and the other agent involved in the transaction. They are all essential to the transaction and the happiness of the buyer and seller. If you have any questions send me a note via E-mail.