Understanding Agency
It’s important to understand what legal responsibilities your real estate
salesperson has to you and to other
parties in the transactions. Ask your salesperson to explain what type of
agency relationship you have
with him or her and with the brokerage company.
1. Seller's representative (also known as a listing agent
or seller's agent). A seller's agent is hired
by and represents the seller. All fiduciary duties are owed to the seller.
The agency relationship usually is
created by a listing contract.
2. Subagent. A subagent owes the same fiduciary duties to
the agent's principal as the agent does.
Subagency usually arises when a cooperating sales associate from another
brokerage, who is not representing the
buyer as a buyer’s representative or operating in a nonagency
relationship, shows property to a buyer. In such a
case, the subagent works with the buyer as a customer but owes
fiduciary duties to the listing broker and the seller.
Although a subagent cannot assist the buyer in any way that would be
detrimental to the seller, a buyer-customer can
expect to be treated honestly by the subagent. It is important that
subagents fully explain their duties to buyers.
3. Buyer's representative (also
known as a buyer’s agent). A real estate licensee who is hired by
prospective
buyers to represent them in a real estate transaction. The buyer's rep
works in the buyer's best interest throughout
the transaction and owes fiduciary duties to the buyer. The buyer can pay
the licensee directly through a negotiated
fee, or the buyer's rep may be paid by the seller or by a commission split
with the listing broker.
4. Disclosed dual agent. Dual
agency is a relationship in which the brokerage firm represents both the
buyer and the
seller in the same real estate transaction. Dual agency relationships do
not carry with them all of the traditional fiduciary
duties to the clients. Instead, dual agents owe limited fiduciary duties.
Because of the potential for conflicts of interest
in a dual-agency relationship, it's vital that all parties give their
informed consent. In many states, this consent must be
in writing. Disclosed dual agency, in which both the buyer and the seller
are told that the agent is representing both of
them is legal in most states.
5. Designated agent (also called, among
other things, appointed agency). This is a brokerage practice that allows
the managing broker to designate which licensees in the brokerage will act
as an agent of the seller and which will
act as an agent of the buyer. Designated agency avoids the problem of
creating a dual-agency relationship for licensees
at the brokerage. The designated agents give their clients full
representation, with all of the attendant fiduciary duties. The
broker still has the responsibility of supervising both groups of
licensees.
6. Nonagency relationship (called, among other things, a
transaction broker or facilitator). Some states permit a real
estate licensee to have a type of nonagency relationship with a consumer.
These relationships vary considerably from state
to state, both as to the duties owed to the consumer and the name used to
describe them. Very generally, the duties
owed to the consumer in a nonagency relationship are less than the
complete, traditional fiduciary duties of an agency
relationship
Ten Ways to
Make Your House More Sellable
1. Get rid of clutter. Throw out or file stacks of newspapers and
magazines. Pack away most of your small decorative
items. Store out-of-season clothing to make closets seem roomier. Clean
out the garage.
2. Wash your windows and screens to let more light into the interior.
3. Keep everything extra clean. Wash fingerprints from light switch
plates. Mop and wax floors. Clean the stove and
refrigerator. A clean house makes a better first impression and convinces
buyers that the home has been well cared for.
4. Get rid of smells. Clean carpeting and drapes to eliminate cooking
odors, smoke, and pet smells. Open the windows.
5. Put higher wattage bulbs in light sockets to make rooms seem brighter,
especially basements and other dark rooms.
Replace any burnt-out bulbs.
6. Make minor repairs that can create a bad impression. Small problems
such as sticky doors, torn screens, cracked
caulking, or a dripping faucet may seem trivial, but they’ll give buyers
the impression that the house isn’t well maintained.
7. Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and
edge the walks. Put a pot or two of bright flowers
near the entryway.
8. Patch holes in your driveway and reapply sealant, if applicable.
9. Clean your gutters.
10. Polish your front doorknob and door numbers.
Ways To Speed Up
The Sale Of Your Home
1. Price it right. Set a price at the lower end of your property’s
realistic price range.
2. Get your house market ready for at least two weeks before you begin
showing it.
3. Be flexible about showings. It’s often disruptive to have a house ready
to show on the spur of the moment, but the
more often someone can see your home, the sooner you’ll find a seller.
4. Be ready for the offers. Decide in advance what price and terms you’ll
find acceptable.
5. Don’t refuse to drop the price. If your home has been on the market for
more than 30 days without an offer, be
prepared to lower your asking price.
7
Terms to Watch for in a Purchase Contract
1. The closing date. See if the date the buyer wants to take title is
reasonable for you.
2. Date of possession. See if the date the buyer wants to move in is
reasonable for you.
3. The earnest money. Look for the largest earnest money deposit possible;
since it is forfeited if the buyer backs
out, a large deposit is usually a good indication of a sincere buyer.
4. Fixtures and personal property. Check the list of items that the buyer
expects to remain with the property and be
sure it’s acceptable.
5. Repairs. Determine what the requested repairs will cost and whether
you’re willing to do the work or would rather
lower the price by that amount.
6. Contingencies. See what other factors the buyer wants met before the
contract is final—inspections, selling a home,
obtaining a mortgage, review of the contract by an attorney. Set time
limits on contingencies so that they won’t drag
on and keep your sale from becoming final.
7. The contract expiration date. See how long you have to make a decision
on the offer.
Remodeling
That Pays
Upgrading your home is always appealing, but which enhancements get you
the best return for your money when
it’s time to sell? The 2004 Cost vs. Value Report by Remodeling
magazine and REALTOR® Magazine has the answer.
Visit REALTOR® Magazine Online's
Cost vs. Value page to view reports from previous years, order
reprints, and
find out how you can take part in next year's survey. Here are the
national averages for 10 of the projects in the
2004 report:
MAJOR KITCHEN REMODEL
Update an outmoded 200-square-foot kitchen with new cabinets, laminate
countertops, and standard double-tub
stainless-steel sink with standard single-lever faucet. Include
energy-efficient wall oven, cooktop, ventilation system,
built-in microwave, dishwasher, and garbage disposer. Add custom lighting
and new resilient floor. Finish with
painted walls, trim, and ceiling. Include 30 linear feet of semi-custom
grade wood cabinets, including a 3-by-5-foot island.
National Average
Job cost: $42,660
Value at sale: $33,890
Cost Recouped: 79.4%
BATHROOM REMODEL
Update bathroom that's at least 25 years old. Replace all fixtures to
include standard-sized tub with ceramic tile
surround, toilet, solid-surface vanity counter with integral double sink,
recessed medicine cabinet, ceramic tile floor,
and vinyl wallpaper.
National Average
Job cost: $9,861
Value at sale: $8,887
Cost Recouped: 90.1%
MASTER SUITE ADDITION
On a house with two or three bedrooms, add a 24-by-16-foot master bedroom
suite over a crawlspace. Include
walk-in closet/dressing area, whirlpool tub in ceramic tile platform,
separate 3-by-4-foot ceramic tile shower, and
double-bowl vanity with solid surface countertop. Bedroom floor is
carpet; bath floor is ceramic tile. Paint the walls,
ceiling, and trim. Add general and spot lighting and exhaust fan.
National Average
Job cost: $70,245
Value at sale: $56,257
Cost Recouped: 80.1%
FAMILY ROOM ADDITION
Add a 16-by-25-foot room on a crawl space foundation with vinyl siding and
fiberglass shingle roof. Include drywall
interior with batt insulation, prefinished hardwood floor, and 180
square feet of glazing, including windows, atrium-style
exterior doors, and two operable
skylights. Tie into existing heating and cooling.
National Average
Job cost: $52,562
Value at sale: $42,347
Cost Recouped: 80.6%
WINDOW REPLACEMENT
Replace 10 existing 3-by-5-foot double-hung windows with vinyl- or
aluminum-clad, double-glazed, wood replacement
windows. Wrap existing exterior trim as required to match. Don't
disturb existing interior trim.
National Average
Job cost: $9,273
Value at sale: $7,839
Cost Recouped: 84.5%
ROOFING REPLACEMENT
Remove existing roofing to bare wood and dispose of properly. Install 30
squares of fiberglass asphalt shingles with new felt
underlayment, galvanized drip edge, and mill-finish aluminum flashing.
National Average
Job cost: $11,376
Value at sale: $9,197
Cost Recouped: 80.8%
ATTIC BEDROOM
In a house with two or three bedrooms, convert unfinished space in attic
to a 15-by-15-foot bedroom and a 5-by-7-foot
shower bath. Add a 15-foot shed dormer and four new windows. Insulate and
finish ceiling and walls; carpet unfinished
floor. Extend existing heating and central air conditioning to new space.
Retain existing stairs.
National Average
Job cost: $35,960
Value at sale: $29,725
Cost Recouped: 82.7%
BASEMENT REMODEL
Create a 20-by-30-foot entertaining area with wet bar, a 5-by-8-foot full
bath, and a 12-by-12-foot auxiliary room.
Exterior walls are insulated. Include five six-panel primed hardboard
doors. Main room includes 15 recessed ceiling light
fixtures, three surface-mounted light fixtures, and snap-together
laminate flooring system. Bathroom includes standard white
toilet, vanity with cultured marble top, resilient vinyl flooring,
two-piece fiberglass shower unit, a light/fan combination, vanity
light fixture, and recessed medicine cabinet. Bar area includes 10
linear feet of raised panel oak cabinets with laminate
countertops, stainless steel bar sink, single-lever bar faucet,
under-counter refrigerator, and vinyl floor tile.
National Average
Job cost: $47,888
Value at sale: $36,457
Cost Recouped: 76.1%
SUNROOM ADDITION
Add a 200-square-foot sunroom to a two-story house. Form and pour footings
for slab-on-grade foundation. Use exposed
post-and-beam framing on interior side and extruded aluminum window
frame-and-flashing system with insulated, low-E,
laminated, or tempered glazing. Provide for natural ventilation using
screens and ceiling fan. Insulate all non-glass areas;
provide movable shades for glass area.
National Average
Job cost: $31,063
Value at sale: $22,002
Cost Recouped: 70.8%
DECK ADDITION
Add 16-by-20-foot deck using pressure-treated SYP joists supported by
4-by-4 posts set into concrete footings. Install
composite deck material in a simple linear pattern. Include a built-in
bench, a planter of the same decking material, and
stairs. Provide a railing system made of the same composite material as
the decking or a compatible vinyl system.
National Average
Job cost: $6,917
Value at sale: $6,000
Cost Recouped: 86.7%
