I know this is a confusing issue. We, as REALTOR®s are required to take a class about this very issue EVERY YEAR!! And, you, as the consumer, probably don’t understand why this is important to you. We realize that your perception of our function to find you a house and help you buy it is a valid one. In fact, that IS, in part, our function.
But, in order to inform and protect you, the whole country has been on a mission to alter the way the real estate agents interact with the public. Here’s why….
Back in the day, ALL real estate agents represented sellers. That was a fact, a given. The agents, no matter what company they worked for, were there to get the best price and terms for the seller. Nobody was representing the buyers. Thing is, when buyers were “working” with agents to find a property, they didn’t know that the agent was NOT representing their best interests, too. They assumed, since they were out riding in the car and had shared all of this personal information about their lives and their finances, that the agent was going to “take care” of them. Needless to say, that wasn’t always the case.
Some very visible lawsuits ensued when one buyer decided to stand up to the system. The results of that litigation elicited changes in our industry. It became important to define WHO REPRESENTS WHO in a real estate transaction. The initial response was to have agents enter in to a conversation something like this:
- BUYER “I’d like to find a house to buy. Can you help me?”
- AGENT “Sure I can. Let’s get started. But, before we get in the car, I need to let you know that I’m NOT representing you. I’m here to get the best price and terms I can for the seller. As long as you’re OK with that, we can proceed.”
Needless to say, when that kind of disclosure came to light, consumer action groups and home buyers across the board were up in arms. From that backlash grew a movement to provide equal representation to BOTH buyers and sellers. Along side the development of this kind of equal representation, the disclosure of that representation has morphed in to something that provides the information to the public in the most succinct way possible. We call it “AGENCY”.
The State of MN wants us to share this information with potential clients at our “first substantive contact”, meaning whenever price, terms or motivation is mentioned. In this day of electronic communication, this kind of disclosure is very challenging. If I get a text from someone wanting to see my property, it’s difficult to go in to a long spiel about “agency” before I can show the property. That’s why I developed this link on my website for people to read. I can send it as a link in e mail or text message. That way, at least I’ve prepared the buyer/seller for this conversation to be had. And, once I meet with people in person, I can open the door to a more comprehensive explanation of this info.
When I hold open houses, the first thing I say when greeting visitors is “Hello, I’m Susan. I’m with Remax Advantage Plus. I represent the seller.” Then, there’s no question about my contractual obligation. I try to caution folks not to mention anything about their terms or motivation. That usually happens if they are inquiring further about the transaction.
Not sure what to think? For more information, read here. And, here’s more information from the State of MN Attorney General’s office on why it’s essential for you to listen to this info when the agent talks!!!
Need some advice? Want to bounce around some ideas? Want the latest information about homes for sale in your area of Minneapolis? You need to contact me right away!!!
Susan Hofflander is a seasoned real estate professional, providing real estate consultations for home buyers and sellers in the Twin Cities since 1994. Susan specializes in homes for sale in Lake Calhoun/Lake Harriet, Minneapolis, Plymouth, MN, Minneapolis Western Suburban Cities and Downtown Minneapolis Lofts.
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Hennepin and Washington. That building, even when the dealer was still there, is out of date at best; an eyesore at worst. There were talks years ago of Whole Foods becoming the main tenant of the location, with other mixed use in the rest of the land. That project went the way of The Nicollet, a proposed skyscraper project that fell apart in May 2010 because of the poor economy.
MPR and KSTP have done a great job illuminating the public about the next step on the re-purposing of this land. Kudos to the Met Council and Minnesota Department of Employment and Economic Development. It appears this will not only remove that broken down dinosaur from that corner, but will help stimulate the economy by creating over 100 new jobs!!
