Does your real estate agent work for you or the seller? An ‘agency agreement’ is a contract which hires a real estate agent to work for either a seller or a buyer. In Wisconsin, an agent needs to have a written contract (agency agreement) with either the buyer or the seller in order to participate in the real estate transaction. Here is a brief description of two common ways an agent can work with a buyer:
When you don’t have an agency agreement with an agent, but that agent shows you property, writes your offer and assists you with the purchase, that agent is representing the seller under the listing agent’s contract, even if that agent is not the actual listing agent. This scenario often happens because a buyer sees a property online and calls a random agent to set up a showing of it. This arrangement is very common in the Hayward area and usually results in a successful transaction for both parties involved.
Here, you choose an agent and then hire him or her to represent you in a real estate transaction. The tool you use to hire the agent is a Buyer Agency Agreement. In this contract you specify how you want the agent to assist you, the start and end dates of the contract, and what commission or ‘success fee’ you agree to pay the agent upon a successful purchase. In this area, most sellers will agree to pay your agent’s commission, or at least part of it.
Although Buyer Agency Agreements are not widely popular in the Hayward Wisconsin area, some buyers prefer them. Hiring an agent can be advantageous; 1) In any situation where you want an agent to represent you and not the seller 2) If you expect an agent to give you detailed pricing data plus negotiate with a seller on your behalf 3) If you are considering a property that might have substantial issues, problems or defects, 4) If you are buying investment property or multiple properties, or 5) If you are considering a for-sale-by-owner property.
Agency agreements can be confusing. Give me a call so we can talk more – I’ll help you figure out what is best for your needs and situation, plus I’ll answer all of your questions. And, if you decide to hire an agent to personally assist you – I’m right here to help you!
Below are helpful links and other info on this subject. Stop back often as I plan to add more to this list as my website grows…. enjoy!