When you consider who a REALTOR truly represents, the term's true colors become very clear;

A DUAL AGENT'S PRIMARY FIDUCIARY RESPONSIBLITY IS TO THE SELLER!

To see how real estate representation really affects you, take a look at the three types of agencies. (Texas Association of REALTORS explains there are five options for relationship between agent and home buyer.) But, from your perspective as a home buyer, it boils down to the following three:

SELLER AGENCY:

These agents represent sellers, it’s that simple, and they make no secret of it. It’s hard to imagine home buyers winding up with a seller agent by accident. If you were seeking representation when buying a home and saw “seller agency” on a firm’s door, you’d be aware then keep looking.

But it gets trickier, since most real estate agencies fall into the next category.

DUAL AGENCY:

If you wanted, you could break this type of real estate representation into three separate subcategories. (See Texas Agency Law Governmental Regulations). Dual agency. That’s where either a single agent—or two agents from the same office—try to represent the interests of both buyer and seller. And “try” is the operative word, since even the best-intentioned dual agent would have to violate the law and ethics codes to give you the representation you deserved. So what you get is a less than perfect transaction for one side over the other. There is rarely a happy medium.

Subagent or co-agent: These agents will work with buyers while openly representing sellers. RED FLAG-You should run the other way- do not proceed. 

Intermediary or facilitator represents both buyer and seller, but refrains from representing either in a “fiduciary capacity.” This subtype of dual agency may reduce some the risks to the homebuyer, but it also eliminates the benefits of rigorous fiduciary representation.

BUYER AGENCY As the Texas Agency Law puts it succinctly; a buyer’s agent is “acting for the buyer only.” The clarity of that clause makes it clear to home buyers that an exclusive buyer agent’s loyalties lay only the BUYER. And, it tells you everything you need to know about what kind of representation to seek. Home buyers would be well served if Texas state law included “Exclusive Buyer’s Agent” as one of the legally defined options for relationships between buyers and agents. Such a category would clear up all ambiguity and make it easy for home buyers to get the benefits of working with an EBA. Until then, you can seek out the few real estate agents who do work exclusively with home buyers. Even without a legal requirement, they designate themselves as exclusive buyer agents and avoid any trappings of dual agency. Only with an EBA can home buyers be certain that their agent’s sole fiduciary responsibility is to them… read more.

Yvonne A. Russell,  REALTOR® 

RE/MAX Associates

CELL (915) 873-8646

FAX (915) 594-9253

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Posted By Blogger to Fort Bliss New Home Builders | Remax Realtor at 6/14/2011 01:27:00 PM

Learn what you must know about dual agency, why it fails to provide effective real estate representation and other reasons to avoid it.

The phrase "dual agent" may have you thinking double agent, an operative adept at playing both ends against the middle. And, while the motive of real estate dual agents are rarely sinister, the effect for the home buyer seeking effective representation can be the same.

Making the terrain even more perilous: Most real estate agents are dual agents. Many home buyers are shocked to learn that their trusted real estate broker actually is obligated to look out for the sellers' interests. settling for this kind of representation. By splitting loyalty between you and the seller, a dual agent:

•               Is legally obligated to tell the seller things you’d like to keep confidential!

•               Is legally obligated to help the seller get the highest fair price!

•               May be biased toward houses listed with his or her agency, whether or not they’re right for you!

•               May skip homes that are for sale by owner, no matter how perfect they may be!

SOLUTION: Exclusive Buyer’s Agent

Yvonne A. Russell,  REALTOR® 
RE/MAX Associates

Market Watch has an article this week called Real Estate Scam that’s devastating prices. I’m not sure I buy the allegations “J.McK” makes in his complaint that his neighbor sold his house to a realtor and is now renting from that realtor. Nonetheless, let’s give him the benefit of the doubt.

Banks are much smarter than this, at least in Texas. The asset manager is not going to allow the agent doing the BPO to turn around and buy the property. The article is suggesting that the BPO agent is out sourcing to a straw man buyer. Unless the transaction is a cash purchase, the buyer is going to have a document trail with his/her lender. It is inconceivable to me that the BPO and the straw man buyer (real estate agent) are going to conspire together to defraud two banks for the benefit of the original owner. But I guess anything is possible in this day and age.

As a home seller you will be affected by unscrupulous real estate transactions that fraudulently devalue the market. So what do you do? You don’t sell until there are enough comparable homes selling at the price you want to sell your home for. I know that this columnist,  Lew Sichelman, says there is very little that can be done but there are federal and state agencies that oversee the real estate industry. The FTC, your states Attorney General, and your states real estate commission to name a few.  When reporting fraud you should have your fact right. These agencies do not deal with suppositions and innuendos.


Yvonne A. Russell,  REALTOR® 

RE/MAX Associates

Military Homes available in El Paso Texas

If you and your family are looking to purchase a home in the Fort Bliss area, we can help! Russell-Realtor can refer Military Home buyers to a knowledgeable RE/MAX Exclusive Buyer’s Agent and experienced real estate agent who will answer any questions you may have and help you find the best home.

Our real estate agent will help you determine which area is best for you and your family. El Paso has nine public school districts and many private schools including Montessori schools, which gives you plenty of options to choose from. Your El Paso real estate agent can give you more information about the schools and surrounding areas to help you find the best school for your child and the best neighborhood for your family.

There’s always more than enough to do in southwest cities, and El Paso- Fort Bliss is no exception. Your family can find entertainment throughout El Paso from a thrilling visit to Western Playland amusement park to a relaxing picnic at Franklin Mountain state park. El Paso is filled with galleries, museums, theaters, shopping centers, restaurants, movie theaters, parks and more..

Purchasing a home is a complicated process, and we understand how overwhelming it may seem at times. This is why we can connect you with the right Exclusive Buyer’s Agent to help you find the best home options including knowledgeable home mortgage loan officers and home inspectors. Make sure to explore your options so you can use your VA benefits to their fullest potential. Military Homes are available in El Paso and Horizon City and Russell-Realtor can point you in the direction of a trusted VA approved lender so you get the best service throughout the home loan process.

Browse through our available homes in the Fort Bliss area, and if you see something you like, we will be more than happy to refer you to a Relocation Specialist and RE/MAX real estate agent.

As a buyer in El Paso, did you ask the agent showing you a home who he/she represents? Unless you ask, that agent probably represents the seller and will most definitely have you sign an “intermediary agreement”. When you sign this type of agreement in El Paso TX  you are being asked to keep the same brokerage as the Seller so that the broker can keep the total commission in the same office.

Today, with the advent of the internet, more home buyers are educating themselves about the buying process. As a result, many are choosing to be represented by a Exclusive Buyer's Agent. A buyer’s agent will take the buyer through the entire process. The Buyer’s Agent will share his/her experience and knowledge of the market then negotiate the best outcome for the buyer saving him/her thousands of dollars.

Buyers did not always have a choice. Up until three decades ago, real estate for sale was traditionally sold by the listing agent that obtained the listing from the seller and represented only the seller. Another agent called the "selling agent," would show the house to the buyer, but was acting as a sub agent of the listing agent. As a sub-agent of the listing agent he or she had a legal obligation to report to the seller all information the buyer revealed including any information about the buyer's financial position. Both the listing agent and the sub-agents had a fiduciary duty, a legal and moral obligation, to act in the best interest of the Seller.

Buyer’s representation did not change until 1983 when the Federal Trade Commission did a study that found 72 % of all buyers mistakenly believed the agent they worked with was representing their interests. By 1988, most states implemented disclosure laws that require agents to disclose who they represent upon their first substantive communication with a prospective buyer.  Although, a 2001 survey found that 46% of home buyers used a Buyer’s Agent, more often than not real estate listing agents in El Paso TX still tend to forget their ethical duty to disclose their agency. The lines become very blurred particularly for Builder’s listing agents and El Paso Realtors whose bread and butter comes from listing homes. Real Estate designations are great but an ABR (Accredited Buyer’s Rep) doesn’t tell you where the agent’s loyalties lie.  The true litmus test is asking the agent how much of his business comes from listing properties. A Buyer has the right to ask questions of the agent that will be representing him/her in the most important financial decision the buyer will make.

Any agent can arrange property showings, suggest sources of financing, provide accurate information and explain forms. But a Exclusive Buyer's Agent should perform services for you that the seller's agents can't, like show you reasons not to buy a particular property; negotiate the best price and terms for you; write contingencies in the contract that protect you; and keep confidential any information that could hurt your bargaining position.

There may be a home you want to buy that is listed in the same brokerage as your buyer’s agent. Your agent will ask you to sign an Intermediary agreement where his/her brokerage acts to facilitate the transaction. The best way out of this dilemma is simply to terminate your agreement with that agent and find another buyer agent not affiliated with that firm.

If you would like more information on Exclusive Buyer’s Agency in El Paso visit Russell-Realtor.com

Article Source: http://www.russell-realtor.com/el-paso-real-estate-blog.html