The Value of the Realtor (Part Two)

Last blog, I ended saying I would discuss what you would get from our company and the national organization of Realtors. However, how a client is represented has come up as a topic and I feel it is more important to write about this now. Rhode Island has a new agency law about which your Realtor must inform you. As members of our state organization, Rhode Island Association of Realtors (RIAR), we are required to provide you with a RI Mandatory Real Estate Relationship Disclosure during your first meeting, before listing your property, or, in the case of a buyer, before putting in an offer to purchase a home. This form is not a contract, but it does clarifies how you would like to be represented. You should know that because of changing circumstances, you may need to sign this form several times. What happens when you are the seller. Your Realtor can work with you as a Designated Client Representative to help you decide how to market and promote your property to the public, decide on a listing price, and negotiate with buyers. He or she will act in your best interest and keep your information confidential. However, your Realtor may need to work with you, with permission, as a Neutral Dual Facilitator. This would happen if your Realtor is assisting both you, the seller client, and the buyer client. She then becomes a facilitator and needs to be neutral and cannot advocate for either of you. For example, if one of your Realtors buyer clients takes an interest in your home, your Realtor is a client representative of you and a client representative for the buyer. Your Realtor can assist both you and the buyer throughout the transaction as a neutral dual facilitator. Now you ask, how can I be represented as a Buyer? Again, there are multiple ways, and you have choices as to how you want to be represented. Commonly, a Realtor will work with you as a Designated Client Representative to help you find that dream home. Once found, he or she can help you decide how much to offer or counteroffer on any property listed by another agent. Here, the Realtor will act in your best interest and keep your information confidential. In this case, you have met a Realtor with whom you feel comfortable and you want this Realtor to help guide you through the home buying process. You will ackowledge this by signing the mandatory RI Real Estate Disclosure form along with your Realtor. But, like what was stated above in seller representation, your Realtor may need to work with your permission as a Neutral Dual Facilitator, because he or she represents both of you. This is looking at that example from the buyer point of view. This happens if you are working with an agent and become interested in one of that Realtors listings. Finally, the Realtor can just be a Neutral Transaction Facilitator. This means that the Realtor can assist you with required paperwork, but does not represent you and cannot negotiate on your behalf. For example, if you walk into an open house and meet the listing agent for the first time, and you want to put in a specific offer; the agent can help you with your offer as a neutral facilitator. Stay tuned for more information on choosing a Realtor.