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BUYING A HOME SERIES: Customer or Client?
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BUYING A HOME SERIES: Customer or Client?

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BUYING A HOME SERIES: Customer or Client? Presentation Transcript

  • 1. Catherine Zerba's BUYING A HOME SERIES:   Do I want to be a Customer or a Client with my REALTOR®? ( in the Purchase of a Home) All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 2. Do I want to be a Customer or a Client with my REALTOR® ? All presentation content Copyright 2012 Catherine Zerba, REALTOR®. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty. •  You, the Buyer/Consumer, have 2 options as a Buyer in purchasing a home; 1) You can be in a Customer relationship with your REALTOR® OR 2) You can be in a Client relationship with your REALTOR®. •  What are the differences between the two? •  The NH & MA ‘Agency Brokerage Relationship Disclosure’ forms explains the differences in an abbreviated manner. Thus, the reason I want to educate you, of YOUR choices, to better inform you as a consumer purchasing real estate.
  • 3. (con’t) Do I want to be in a Customer or a Client relationship with my REALTOR® ? •  The NH & MA Real Estate Commissions require REALTORs to present (and have you sign) the ‘Brokerage Relationship Disclosure’ form at a ‘first business meeting’. •  REALTORs should present and review this form with you to inform you of your choices so you understand how you are, or can be, represented in a real estate transaction. It’s the law! Note: it is a Disclosure, NOT a contract! All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 4. #1 - Do I want to be a Customer? •  In the Customer relationship, the REALTOR® is working with you. The REALTOR® is there to guide you through the process. •  You are provided with; ministerial acts, fair & honest dealings and disclosure of any known materials facts about the property. •  In this relationship you are a Customer and provided with limited services. This relationship is also called a “Facilitator”. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 5. (con’t) Do I want to be a Customer? •  In the Customer relationship, the REALTOR® does not; represent your best interests. The REALTOR® does not owe you a fiduciary relationship. The REALTOR® does not advocate for you. • The responsibility to complete any due diligence on the property, or properties you are considering purchasing, resides with you as the purchaser. •  In this Relationship, the REALTOR® is compensated by the Seller through the co-broke fee being offered by the Seller in MLS (Multiple Listing Service). Hence, there is typically no cost to you as the Buyer. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 6. Why would I want to be a Customer? • You want to work the process with your own knowledge. • You do not want confidentiality. Note: the REALTOR® can elect to maintain confidentiality but does not have a duty to do so. • You do not want advice or representation or the REALTOR® to advocate for you. • You do not want to compensate or “hire” a REALTOR®. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR Keller Williams Realty.
  • 7. What duties can a REALTOR® perform with me as a Customer? All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty. • Ministerial Acts (i.e. scheduling appointments to view homes, making any basic requests) • Accounting for all Funds (escrow deposits) • Reasonable Care & Skill • Fair & Honest Dealings • Disclosure of all Material Facts (of which the REALTOR® has knowledge)
  • 8. #2 - Do I want to be a Client? •  In the Client-REALTOR® relationship, The REALTOR® is working for you. The REALTOR® can provide you with their expertise, knowledge and advice/opinion, and can advocate for you. •  You are provided with the duties/services of the Customer relationship as well as provided with a fiduciary relationship & Client level services. •  The REALTOR® acts in YOUR best interests and should complete due diligence on any property you are considering purchasing. •  The REALTOR® is held to a higher standard by their Real Estate Commission. (i.e. more accountability) All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 9. (con’t)Do I want to be a Client? •  As a Client the REALTOR® is your Buyers Agent. A Buyer Agency Agreement is signed. Think of it as the ‘flip side’ of a Listing Contract to sell your home, only the REALTOR® is managing the process of the purchase of your home. •  In this Relationship, the REALTOR® may specify a minimum fee for their services. If the fee the REALTOR ® is charging you is not covered by what the Seller is offering as the co-broke fee in MLS (Multiple Listing Service), you would be responsible for the difference. This cost can be included as a Seller concession or closing cost. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 10. Why would I want to be a Client? •  You want representation. •  You want the REALTOR® to advocate for you. •  You want a fiduciary relationship (loyalty, confidentiality, diligence, etc) •  You want to utilize the REALTOR®s knowledge & expertise. •  You see the value of paying for the REALTOR®s services if their fee is not fully covered by the Seller. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 11. What duties can my REALTOR® perform with me as a Client? •  Promote your best interests, Be your advocate. (Find you properties & Complete due diligence on the properties) •  Fiduciary Duties •  Advice, Counsel and Assistance in Negotiations (Complete a Market Analysis on the Property you are pursuing, Suggest favorable terms in the P&S Agreement, Strategize if you are in a multiple offer situation, Strategize/offer their opinion with you on counter offers and home inspection items) •  Offer/utilize the REALTORs opinion, knowledge & expertise. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 12. May I change from a Customer to a Client relationship? •  Yes, you may change your relationship with your REALTOR® from a Customer to a Client. There are certain points in a transaction that this can occur. Consult with your REALTOR®. •  Some consumers/Buyers like to work with their REALTOR® in a Customer relationship for a period of time to see if they are good business partners before committing to a Client relationship. Likewise, REALTOR®s sometimes recommend the same. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 13. Do REALTOR®s give priority to Clients over Customers? •  With a Customer, a REALTOR® is not obligated to any specific criteria or a contract. •  With a Client, a REALTOR® is performing under a contract. They are held accountable. Again, think of it as the “flip side” of a Listing Contract to sell a home and the REALTOR is working for you to procure a home. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
  • 14. Customer or Client? Choose which option works best for you! • Do I want to be in a Customer and/Facilitator relationship? or a Client / Buyer Agent relationship with my REALTOR®? • Consult with a licensed and competent REALTOR®, such as me, to determine which option is best for you! • Note: This is a limited overview of the differences between the Customer/Facilitator relationship and the Client/Buyer Agent relationship. All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.