WHO SIGNS A CONTRACT WITH A REALTOR?

Buyers. In the state of Connecticut a Realtor can only show you property listed through their agency without having you sign a Contract to represent them. Although, if you decide that you do not wish to sign a contract even to see their company listings, then you must sign a “Notice to Unrepresented Parties”, acknowledging that you are not represented and the Realtor represents the Seller. However, it is in your best interest to be represented. You have options. You can sign a contract for a specific town or for a specific address for any length of time. If you do not know if you want to work with a certain Realtor, sign a contract only for the properties that you see with him or her.

Sellers. A Seller must be represented if they decide to work with a Realtor. Again you have options as to how long you want to be represented, but take into account that the Realtor and Brokerage firm are spending their time and money to advertise and promote your property. Be loyal; Your Realtor wants to sell your property as much as you do.

Landlords. If you have a rental property, sometimes it is easier to have the Realtor deal with the headache of running the credit check and calling references. As a Property Manager myself, I understand the stress of finding a suitable tenant. Not all Realtors like working on rentals properties frankly because it is a lot of work for very little money. I do, however, because understand the process first hand.

Renters. Renters typically sign an “Open Right to Represent” contract. This means they are free to find property on their own without any penalties, but if the Realtor finds suitable housing for their client then they will represent them in that transaction. We do this because only about 40% of rental properties are listed through Brokers.

BUYING A LISTING

You are in the market to either sell or rent your home. You meet with three agents from different local companies. Two of them give you much lower prices than you expected to hear; although, they were able to back up the price with recent sales or closed rents from your area.

The third agent tells you your home should be listed at a much higher price.(Higher than it’s actually worth based on market conditions).

Of course, you decide to go with the third agent who seems confident that they can sell your property at this higher price. This agent, with their lies, has just “bought your listing”. Now you can sit back and wait and wait and wait and eventually your agent will convince you to lower your price over and over again. This is a common practice for some agents and one reason why Realtors® have a bad reputation and why it is so much harder for the honest agents to get a break.

Look at all the facts (sales or closed rentals) presented to you. More times than not, the lower price is usually the more accurate price.

If your home is overpriced:

• It will sit on the market longer
• People will think there is something wrong with your home
• The longer it sits, the more money you lose.
• Homes that are overpriced often receive an offer to purchase that is lower than it’s actual market value.

MATERIAL FACTS VS NON-MATERIAL FACTS

Examples of Material Facts:

1)      The square footage of a home

2)      Yearly taxes

3)      The condition of the home

4)      Any structural or environmental problems known to the Seller

5)      The presence of easements, encumbrances, or any boundary disputes.

6)      Problems with the mechanicals, such as heating, cooling or plumbing.

These are all things, you the Seller, need to disclose. If you are debating whether or not to disclose something, it is probably better to give all the information honestly. You never want to try to hide an issue.

Examples of Non-material Facts:
1)      If a death took place in a home
2)      If a home is haunted
3)      If an occupant of the property is or has been infected with a disease
4)      If the home was the site of a felony.

Non-material facts do not need to be disclosed by the Seller or the Realtor. If you have concerns and would like more information regarding these issues you may put a request in writing, which will be presented to the Seller. The Seller, however, by Connecticut law, may either give a written response or may refuse to reply.

MOLD IN THE HOME; WHO’S RESPONSIBLE?

I came across this article the other day about a family that found a “secret room” full of mold after they had purchased their new home. They are now in the process of suing the Realtor, saying she knew about the mold. I’m not sure why they wouldn’t go after the Seller. The Seller needs to disclose as much information as possible. If they knowingly withhold information then they can be held liable. Of course if the Realtor, knew about the mold and didn’t say anything then she is also responsible.
By law, a Realtor can not fill out the disclosures for the Seller. As a Realtor, I will provide information about the home, taxes, schools, and zoning. I am also required to disclose information that is available through public sources. I am not an inspector and cannot give advice on, or detect mold (that is not visible) or other issues, that is better left to the professional trained in that area.
As a Buyer, you have the right to perform inspections, including, but not limited to, inspecting the structure, mechanicals, mold, septic, well, water, radon etc. I suggest a home buyer test as much as possible.

HOW TO END YOUR RELATIONSHIP WITH YOUR REALTOR

First, did you actually sign a contract with your Agent? If you listed your home, then you probably did. The next question is why do you want to end your relationship? If you are not satisfied with their work, then first try to discuss your concerns. Most issues can be resolved with communication. I say give your Realtor a fair shot. If they don’t know you’re not happy, then they can’t remedy the problem.

If, after voicing your concerns, your agent still doesn’t make the necessary adjustments or if there is a conflict of personality and you feel there is just no way out, well there probably is. For the most part, you can dissolve any agreement with your Realtor by putting it in writing. Of course you will need to read your contract for specific details. There may be a commission due if that agent has been the procuring cause in finding a Buyer.

If you are not comfortable speaking with the agent, then call the office and speak to the office manager.

If you would still like to use the company, just not the agent, that can be accomplished as well. The office manager will be able to choose an agent that better suits your needs.

 

If  you are a Buyer, you may or may not have signed an agreement. In the State of CT, Buyers must either sign a contract to be represented or a notification to unrepresented Buyers. The later is only applicable if the Agent is showing you a listing through their company. Legally they can not show you another company’s listing without representing you.

If you have signed a contract, look at your specific contract and read the fine print. In most cases you can cancel your contract by putting it in writing. You may first want to discuss with your agent what more you are looking for and see if they can meet your expectations. Again if it is a personality conflict, the Agent or office Manager will be able to find representation that is better for you.

What ever you do, do not just walk away and never talk to your agent again. If you buy a home without canceling your contract, you may be held responsible for paying the commission due to that Brokerage firm.

Communication is key.

DIFFERENT TYPES OF REPRESENTATION

A Buyer’s Agent only represents the Buyer. The duties of the Buyers agent are to

*Arrange showings

*Provide information about the home, property, taxes, schools, community and zoning.

*Disclose any information about the property that can be found from public sources.

*Prepare a Market Analysis and counsel the Buyer on what price to offer.

*Write up an offer with the Buyers interest in mind.

*Negotiate the best terms and price for the Buyer.

*Keep the price capabilities and objectives of the Buyer confidential.

*Keep track of all dates, events and requirements for the Buyer.

*Attend the Closing with the Buyer.

 

A Seller’s Agent represents only the Seller and their duties are as follows:

*Prepare a competitive market analysis of the Seller’s home or property

*Create and execute an effective marketing plan.

*Present all offers and counsel the Seller on how to proceed.

*Negotiate exclusively on the Seller’s behalf.

*Keep the Seller up to date on Market conditions

*Make sure all contingencies have been met by their contractual dates.

*Attend the closing with the Seller.

 

A Dual Agent represents both the Buyer and the Seller. When this occurs, both the Buyer and Seller will be asked to sign an agreement consenting to Dual Agency. A Dual Agent owes both the Seller and Buyer equal representation. A Dual Agent must:

*Treat both the Seller and the Buyer fairly.

*Disclose facts each party needs to make an informed decision.

*Assure confidentiality on each party’s price, terms and personal information. The same as they would if they only represented one side of the negotiation.

 

A Designated Agent represents one side of a transaction when the Brokerage Firm represents both the Seller and the Buyer. The Agent will owe her fiduciary obligations solely to the party they represent. When this occurs both parties will be asked to sign a consent form agreeing to Designated Agency.

HOME BUYERS AND THE INTERNET

Where do Buyers come from?

This is the age of the internet, where information is just a click away. Statistics show that more and more Buyers are turning to the internet to find their next property. Your agent needs to be promoting your property on the internet in order to reach the maximum number of consumers:

 

8 in 10 Americans have access to the Internet.(Neilsen/NetRatings,2006)

 

77% of Home Buyers said that the Internet was the primary source of information.

 

69% of Home Buyers thought the Internet was a very useful source of information, while only 29% thought the newspapers was useful.

 

24% of Home Buyers first learned about the home they purchased on the internet. Only 5% found their home in the newspaper.

 

Why Do Consumers prefer the Internet? (NAR Profile of Home Buyers)

 

84%  More Photos

83%  Detailed and up-to-date property information

59%  Virtual Tours

44%  Maps

36%  Neighborhood/Community Information

29%  Real Estate Agent Contact

 

Buyers of all ages are now online. They want to do their own research and have as much information as possible before making a decision. If your property isn’t on the internet, you are missing out on potential Buyers walking through your door.

USEFUL WEBSITES FOR TOWN INFORMATION

Here is a list of useful websites for some of our Shoreline towns. Within each site you can find almost every bit of information you could need, including links to Public Schools, the Public Library, Parks & Recreation, Local Businesses and much more.

Guilford

Madison

Clinton 

Westbrook

Old Saybrook 

Killingworth

If you would like to look at the Demographics, Economic and Educational Profiles for any town in Connecticut, click here.

HOME WARRANTY

The average life expectancy of critical home systems and appliances is 13 Years and the likelihood of failure in any given year is 68%. You can protect yourself with a Home Warranty.

 

A Home Warranty makes your home more appealing to Buyers and protects you, the Seller, before and during the Sale and protects the Buyer(s) for one year after the Sale.

 

● Homes with a warranty sell up to 50% faster than unwarranted homes.

● Warranted homes are perceived as a safer investment and on average offer a selling price of up to 3% more. 

● With a home warranty, the chance of conflict over a malfunctioning system or appliance is minimized.

● Home warranties limit the possibility that you’ll be asked to reimburse they buyer for a breakdown of a covered component after closing.

 

A Home Warranty may cost a few hundred dollars, but can save you thousands in the sale of your home.

OVERPRICING YOUR PROPERTY

“If it’s too good to be true, it probably is.” Don’t fall for an agent who is trying to “buy” your listing. It’s not that easy to reduce your price after your home has been on the market.

The danger is by the time the property is finally reduced to its proper market value, it may have been on the market for too long and Buyers perceive it to be “tainted”. Buyers will start to question how long it has been on the market and why hasn’t it sold. If they are working with a good agent, that Buyers Agent will supply them with a CMA as well as the history of the property, so they can make an informed decision. Their offer to purchase, based on that knowledge, may then be below its actual value.

It is important to price your home to be in the best position for market exposure.

Realtors are notified as soon as a property is listed. As a result, the majority of showings on your home will occur within the first few weeks. If you do not see any activity, that is a good sign that your property is overpriced and you may want to consider lowering it.

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