Ask Cora Hey Cora, I just bought a house and I really felt like the realtor cared more about the seller than about me? How do I make sure that doesn’t happen? Signed, Nice Reader. Hey there Nice Reader, well, it may be that they did care more about the seller than about you because of representation. The real estate business can be confusing as there are many little nuances to it, but I want to make sure that you understand how to be represented. Let’s start with a few vocabulary words: Commission – this has two meanings really, 1) the State of Alaska Real Estate Commission, who sets rules for how a realtor conducts business. 2) the fee that is charged to the seller for putting the house on the market. MLS or Multiple Listing Service – this is a service that real estate licensees use to list the property for sale. This service puts it out there on-line, passes it off to other web sites like Zillow and Realtor.com. All real estate licensees pay a monthly fee to be able to use this service. We keep very careful watch on the data here too so we can value a home properly and see the history on homes as well. We also have agreements with other brokerages. This way, if I have 20 listings on the MLS, Rhonda Realtor can look at all of them, show them and sell them! The buyer does not have to buy them from me. This way each buyer can choose who they want to represent them. Closing costs – each party, buyers and sellers, have closing costs. The buyers have closing costs that are related to getting a loan to purchase the home. The sellers have closing costs like title insurance and paying the real estate fees. At the end of the transaction, each party reviews their own closing costs to make sure they are correct. Even though the seller pays the real estate commission, in most cases, they agree to share that real estate commission with the buyer’s realtor too, therefore each party to the contract is represented. Now when I say ‘party’, I am not talking a “whooo hooo! It’s a Party” party, I just mean someone who is on the contract, that kind of party! The boring kind, not the fun kind. Home Inspection – this is a person who is a licensed home inspector in the state of Alaska. They represent you, the buyer! Not in the real estate contract, but rather in the contract you have with them to inspect the property. They do not represent the seller; they only represent you. And they will give you knowledgeable information on this home you want to buy. From the foundation to the roof and the wall to the… well, the wall! They show you as much as they can about the house so you can make an educated decision
Brought to you by about moving forward with your sale. Appraiser – the appraiser does not represent you, but they do not represent the seller either, they represent the bank! Your lender hires an appraiser to go to the house, measure it, take pictures, look in the crawl space and the attic and then they get on the MLS and see what homes in the area have been sold lately and compare this house to those houses. They are there to protect the bank’s interest in their investment of your home. Don’t make the mistake in thinking that they represent you at all – just the bank. Okay, so now we understand all that, here’s what I want to give you this time. You, a buyer of a home, are not obligated to purchase said home from the realtor who has the house listed on the MLS. Most of the time, that realtor represents the seller, not the buyer. Sometimes, the realtor that has the house listed, can assist both clients – but what that means is that no one is represented, and the agent is a neutral party. Sellers, if you are paying the commission, make sure you are represented by your realtor. Buyers, you too deserve representation, so make sure that you have your own realtor. How do you “make sure”? Whenever you make an appointment to look at a home, you will be given a form from the realtor called Alaska Real Estate Commission Consumer Disclosure. That’s a lot of words for just a 2-page form. Anyway, it’s a required form from the Alaska Real Estate Commission that explains how you are represented. To look at a home or property or even if you are going to rent a property, you must sign one of these forms before you go in. This is to make sure that you understand who is representing you, the listing realtor or your own realtor. Now, I know a lot of realtors who sell their own listings, and there is nothing wrong, unethical, or illegal about this at all. As long as the buyer and the seller know and understand that this licensee is working with both sides of the contract, all is good! What I want you to know is that you have options, you can have your own realtor representing just you and, in most cases, it will not cost you a penny! It’s easy, you just ask a friend who they would use, or call me, or look online, or you could call me, or you can get a name off a for sale sign, or of course, you could call me… but all that aside, whomever you use, please consider your own representation. So, Nice Reader, if you did not have your own representation, then your hunch about them caring more about the seller than you – that might be true. Call me if you are thinking about buying or selling – I love looking at houses!
October 2021
Call Cora Today! Keller Williams Realty Alaska Group Of Wasilla 621 S Knik-Goose Bay Rd Wasilla, AK 99654
www.clcandassoc.com
907.982.5700
GreatLander Real Estate Guide
5
