Frequently Asked Questions

Buyers Frequently Asked Questions

 

  1. What is a "One-Time Show" listing?
  2. What is the difference between a "Listing Agent", "Selling Agent" and a "Dual Agent"?
  3. What is a FSBO?
  4. Who is a Realtor?
  5. Who is a broker?
  6. Why should I use a real estate agent?
  7. What is Multiple Listing Service (MLS)?
  8. What is a Contingency?

 

Sellers Frequently Asked Questions

 

  1. What is an "Exclusive Right to Sell" listing?
  2. What is an "Exclusive Agency Listing"?
  3. How should I price my home?
  4. Do I have to accept the highest offer when selling my home?
  5. Can I back out of an offer to accept a higher one?
  6. Am I obligated to make repairs after buyer orders inspection?

 

Buyers Frequently Asked Questions

 

Q: What is a "One-Time Show" listing?

A:

With this type of listing the home owner signs an agreement with the agent declaring to pay a commission to the agent for selling the property.
The agreement also states that home owner cannot negotiate later with the buyer to avoid paying a commission. This type of listing is common when an agent is showing a FSBO (for sale by owner).

Q: What is the difference between a "Listing Agent", "Selling Agent" and a "Dual Agent"?
A:
Dual Agent:
An agent representing both parties in a transaction - usually requires written consent of both the buyer and the seller

Listing Agent:
The agent who represents the seller. If you call an agent from a sign outside a house or from the newspaper, this is usually the listing agent.

Selling Agent:
The agent who obtains a buyer.

Q: What is a FSBO?

A:
FSBO means "For Sale By Owner" This indicates the owner is selling the house without the help of a real estate agent.

Q: Who is a Realtor?

A:
A designation for an agent or broker who is a member of the National Association of Realtors. They follow a strict code of ethics beyond state license laws and also sponsor the Multiple Listing System (MLS), which is used to list houses for sale.

Q: Who is a broker?

A:
A real estate agent who is authorized to open and run his/her own agency. All real estate offices have at least one principal broker.

Q: Why should I use a real estate agent?

A:
A real estate agent is more than just a sales person. The real estate market is constantly changing, and the real estate agent keeps abreast of these changes. They are able to provide the most current changes in the real estate market.

If you are in the market to buy, it would be advisable to use a Buyer's Agent to get the best deal. A Buyer's Agent is usually paid by the seller.

When you are selling your home, a real estate agent will provide recommendations on what terms and prices to offer as well as negotiating a deal with your best interest in mind.

Q: What is Multiple Listing Service (MLS)?

A:
MLS is a computerized listing of homes for sale by which agents are informed of the properties offered for sale by other agents. Real estate agents use the MLS to find properties for sale in an area.

Q: What is a Contingency?

A:
A contingency is a provision given in the contract stating that certain conditions must be met before the contract can become valid.

Sellers Frequently Asked Questions

Q: What is an "Exclusive Right to Sell" listing?

A:
This is the most common and most effective type of listing. The agent places your home in the MLS, and does most of the work such as marketing the property and even hold open houses for your home. With this type of listing, the agent expects to make a commission when the property sells, so they play an active role to market it.

Q: What is an "Exclusive Agency Listing"?

A:
With this type of listing, the real estate agent places your home in the MLS and can market the property. The agent will receive a commission if the property sells through any real estate company or another agent. However, if you, the seller, find a buyer on your own, the agent does not get a commission.

This means that the agent may not be too motivated to market your property; it is not a common type of listing and should be avoided.

Q: How should I price my home?

A:
In order to price your home competitively, you must consider the conditions of the current real estate market, especially local conditions.

You must also do a Comparable Sales Analysis (CMA) to determine the best price. Your real estate agent should be able to help you with this.

Q: Do I have to accept the highest offer when selling my home?

A:
No. Sometimes a better qualified buyer, or a buyer that offers better terms, may be better than one that makes the highest offer.

Your real estate agent will help you decide which offer is the best. You can also give counter offers to one or more of the buyers.

Q: Can I back out of an offer to accept a higher one?
A:
Once an offer is accepted and entered into a contract it becomes legally binding. It would be unwise to back out after the contract is effected.

Q: Am I obligated to make repairs after buyer orders inspection?

A:
No. Typically, inspection reports are used as bargaining tools to lower the asking price. Your contract should provide a guidance for these negotiations.