Agency
One of the first things we discuss with prospective buyer and seller clients is agency; who we work for during the real estate transaction. It is actually a New York State requirement that all real estate salespeople discuss agency at first substantial contact. Ensuring our clients understand agency and who we represent is extremely important to us so we thought we’d take a few moments to explain it.
Agency is a legally binding relationship between real estate agents and clients during the home buying/selling process. Establishing agency is what allows us to act in our client’s best interest. The acronym OLDCAR is often used during agency related trainings and continuing education classes to remind us of the fiduciary duties we are beholden to - obedience, loyalty, disclosure, confidentiality, accounting and reasonable care.
In a transaction, real estate professionals can represent the seller, the buyer or both. Dual agency is supposed to be fully disclosed and both sides need to provide consent. Dual agency is legal and considered ethical in New York State, though it is illegal in some other states. It is critical that each party understand who they are being represented by and whether they have a sole agent or one who is acting on behalf of both parties.
At McSharry and Associates, we work with both sellers and buyers but we will never represent both sides of the same transaction. When we list a property, we explain to the seller that we are acting as their agent during the entire process and that if a buyer client is interested in the home, they have the option to see it with us and be unrepresented, or to ask us for a referral to another agent who can represent their interests. During our initial meeting with buyers, we explain that we will never represent them in the purchase of a McSharry and Associates listing and assure them that we will help them find a good local agent if they are interested in one of our listings. It is important to us that both sides know who is working for them, because Realty with Integrity is not just our tag line, it is our guiding principal.
We are proud of our decision to not act as dual agents. Our position is one that few agents and brokers choose to take. Large brokerages simply cannot promise single agency because even if two different real estate agents are representing each side, if they both work for the same company, then it is dual agency. Additionally, the lure of doubling one’s commission check can be a compelling reason for agents to sell their own listings and most agents chose not to forgo this opportunity. While we lose half the commission when we send one of our buyer clients to another agent to represent them in the purchase of our listings, we gain the respect of our clients because they know we have their best interest at heart, which is truly what agency is all about anyway.