Get the Realty Facts
Learn the facts when buying or selling a house in New Jersey. The laws vary from state to state so it’s important to educate yourself accordingly. If you have any questions, feel free to contact me.
Here is a list of common questions about New Jersey Real Estate.
What is the main purpose of a Real Estate Agent?
The main purpose of a Real Estate Agent is to prevent fraud (protect you) by acting as a fiduciary, representing your best interests in the Real Estate transaction. Agents and Brokers have a fiduciary responsibility that legally requires them to act on your behalf, not theirs or anyone else’s. This pertains to all aspects of the sale process.
What is a Buyer’s Agent?
A buyer’s agent works with a potential buyer through the process of purchasing a home. The buyer’s agent is legally bound to the home buyer having a fiduciary responsibility to act in their best interest. Buyer’s agents are paid by the Seller, making them a free representation service to buyers.
What is a Seller’s Agent?
A seller’s agent represents a seller. Much like a buyer’s agent has a legal (fiduciary) responsibility to a buyer, a seller’s agent has that same legal responsibility to the seller.
What is Dual Agency?
First off, dual agency is shady, don’t do it. It’s a concept commonly referred to as “double dipping” by real estate agents since they get both sides (buyer and seller agent fees) of the commission. It’s an older idea that makes sense if there are no other agents around…rural areas.
Dual agency is where an agent represents both parties in a transaction, meaning both buyer and seller. If you are represented by a dual agent, you are giving up many of your rights. It is impossible to represent the best interest of both parties in the same transaction.
Who Pays the Commission in when Buying a Home?
The Seller pays the commission. The buyer does not pay a commission in a real estate transaction. The commission (on both sides of the transaction) is paid by the Seller and included in the sales price.
What is the Difference Between a Realtor® and a Real Estate Agent?
A Realtor can be a real estate agent and a real estate agent can be a Realtor. The difference between a Realtor and a real estate agent is membership. A Realtor is a member of the “National Association of Realtors”.
Do I need a Buyer’s Agent when I Buy a House?
No you do not need a buyer’s agent. You can buy a house without an agent, however there will be limitations in the selection. Without the use of a Buyer’s agent, buyers will have a difficult time getting access to MLS properties.
Buyers usually end up calling the listing/seller’s agent (conflict of interest) on each individual property to chase them down, instead of working with one Buyer’s agent to streamline the process.
Do I need a Seller’s Agent when selling a house?
No, you do not need to sell your house with an agent. FSBO (for sale by owner) is a common way to sell property. However you will not receive the benefits of being listed in the MLS. In addition, without “quality data” you may not choose the correct sales price (value).
You can post it on websites like Zillow, FSBO and others, but exposure is limited. Potential buyers may also be looking for a discount since you are not paying a real estate commission.