I recently did a listing presentation for a couple who had been trying to sell their home on their own for almost a year, then decided to bring in an agent. They live out of the area and trying to handle the sale on their own was a hassle, even though they have been successful with other homes in the past. And in this market the limited advertising they did was not doing the trick. AND the house was really over-priced.

I dogged these people for 6 months, sending them market data and updates, suggestions for marketing the home, and more. So I was very pleased to be asked to come in to talk with them (as one of 3 agents they were interviewing, for 30 minutes each).

The presentation, though brief, went well and we had a good conversation. They had some great questions, too. The house has its challenges, as it needs some updating, but the bones are good and the floor plan offers a number of possibilities.

A few days later Mrs. Seller called me, as I requested, to let me know that they had decided on another agent (as it turns out, someone they have known for a number of years) but they had really liked me and my approach and style. There was no negative feedback - they only chose this person because of the relationship. They will keep me in mind if things do not work out.

I told them I really hoped the house sold for them, even though that would mean I would not be their listing agent.

Sure, I would have liked to have had the listing, but I was pleased to be part of the process, and the feedback I got was very positive. So I feel that I still won, in the end. I wish them luck!

Are you confused by the terms you hear floating around the real estate business - listing agent, selling agent, dual agent, buyer agent? I'm not surprised. They can be confusing to us agents as well, and there are those in the industry who use them in different ways and to mean different things. And some, unfortunately, do not understand the nature, and importance, of the different roles these relationships should have for you, the consumer.

I want to clarify things a bit, but don't worry so much about the terms. What is important to understand are the relationships that you can have with a licensed agent since THAT impacts the transaction, and affects YOUR INTERESTS.

Listing Agent refers to the individual (through a brokerage) that has a signed contract with a seller to list and market that home. That person REPRESENTS THE SELLER.

Buyer Agent is an agent who has agreed to REPRESENT THE BUYER - his or her interests, with fiduciary responsibilities, honesty, loyalty and more. DO NOT assume that the agent you decide to work with is representing YOU, the BUYER unless you ask. While that person is helping you, they may be working on behalf of the seller. Any good agent will explain the differences to you without you asking. But if not, ASK THEM! Don't make assumptions - they can bite you.

A Dual Agent is one who REPRESENTS THE BUYER AND THE SELLER, ostensibly. ALL parties MUST agree to this. However, it is impossible to truly represent BOTH PARTIES. It can't be done. How can an agent truly represent your best interests as the buyer when they are in conflict (e.g., price, concessions, repairs) with those of the seller?Consider this role very carefully. Are you really comfortable being in that type of relationship? You DO have a choice.

A selling agent is generally considered to be the person who brings in the buyer (i.e., they "sell" the home). This person could be the listing agent, a buyer agent, or a sub-agent (an agent who is representing the seller but working with the buyer - it could be a person in the same brokerage or someone else).

If you are buying AND selling, your listing agent can also act as a buyer agent for you in your purchase transaction. However, since they know alot about you as your listing agent, you would NOT want them to act on behalf of the sellers in your purchase - they need to represent YOU.

Knowing the relationships you have with a particular agent is what is important, not the title. And many states have disclosure forms you must review and acknowledge so you understand the possible relationships.

And know that state laws may define these differently. Some areas do not allow dual agency, and so on.

Do you have your home listed so that you can relocate, but are getting a sinking feeling that your agent is NOT doing the job? I'm not referring to the fact that your home (which I HOPE is priced very competitively so you can sell it quickly and not delay your relocation) hasn't sold within a week of being listed, but to some other things that might mean your agent is slacking off. (read my earlier post on what a REALTOR does to market a home to learn more)

• Lack of communication - you don't hear from the agent. When you do call or email, you get no response, or none for 24 hours or more.
• There is little or no marketing - you don't know WHAT your agent is doing to market your home. Perhaps s/he told you about the things they would do on the Internet but you have yet to see anything. Your agent said there would be Open Houses but there have been none to date. The sign is dirty or lopsided, and the brochure box you were promised is missing.
• Poor MLS listing - if you DO get to see the actual listing (you SHOULD) you see typos, inaccuracies, and lousy, unflattering photos.
• Other promises made but not kept - the agent doesn't inform you when showings are to occur although that was your agreement. The agent promised to get feedback from showings but doesn't.
• Marketing materials are absent - the stuff your agent promised to leave at the house for showings haven't appeared, or are not what you expected. Plus there are mistakes and missing information on the feature sheets.
• No coaching or advice - Your agent doesn't coach you on how to stage your home or point out minor repairs that are needed.

This may not be everything, but you now have some doubts about what you are getting for your money. So now what to do you do?

My next post will provide some insights as to how to handle this situation, and perhaps how to avoid it altogether. Hiring a good listing agent is a pro-active approach but there's more.

First, a good listing agent IS NOT the agent who promises that they can get you a particular price (REMEMBER - the market determines the sales price, not you or the agent) and NOT the one who quotes you the highest list price (this one is more likely giving you a high price simply to obtain the listing, which will probably end up becoming an expired listing and you will need to hire someone else). It may be appealing to hear that Agent X can get you $, but if the market does not support that price, you are wasting your time  - if you are relocating this may be your biggest and most costly mistake.

If you are in a seller's market, while it may be easier for your home to sell quickly, a strong agent is still important.

If you have NOT hired a listing agent to help you yet, here are just a few suggestions of what to look for.

• A strong marketing plan, in writing, including print but especially a broad range of Internet strategies - a sign in the yard, a listing on the MLS, and an open house here and there will probably NOT sell your home in this market. You should see clearly WHAT you agent is going to do and WHEN, and you need to hold them accountable for their written plan
• Someone who really knows and understands the current market and can provide you with specific data (comparables, trends, actual sale) to support their position. Do they know who your competition is? Do they know who is most likely to be your target market?
• Someone with a high percentage of sold homes relative to the number they list (just because someone LISTS alot of homes does NOT mean they sell them - some agents sells 50% of their listings)
• An agent who can demonstrate a strong understanding and use of technology in their marketing and real estate business. The majority of buyers these days use the Internet to search for homes FIRST before hiring an agent.
• Someone who asks lots of open ended questions and LISTENS to the answers, and who can provide options as well as solutions to problems
• A list of references that you can call. Testimonials are important, too, but actually speaking with some references will be more reassuring.

For more information on finding a REALTOR, especially to help you with buying in your new location, see my previous post.