Are you an INVESTOR? Who does your agent represent?

As an expert on the Kenosha Foreclosure market, I often know what properties are coming on the market as REO's before they are even on the market. My team keeps records of the Kenosha Sherrif's Sale and we not only know what the bank paid at auction for the property, but often we have been in the property consulting with the previous home owner and know the condition of the property.

Because in Wisconsin agents are assumed to be sub-agents of the sellerp; I ethically and legally cannot advise investors what they could or should pay for the property, or give any insight that would give them an advantage in negotiating UNLESS they are my client by way of a buyer agency agreement.

Most buyers, including investors believe a buyer's agency agreement is just a way for an agent to "lock up" a buyer for any and all transactions, and it is true that most agents are offering it for that purpose. The fact is many agents forget how important agency is, and blur the lines constantly. In some states such as Illinois, buyer agency is assumed in the absence of an agreement or agency disclosure.

This is a good opportunity to test an agent on their knowledge and ethics. Ask an agent for advice on buying properties, and see if they are willing to help you negotiate in the absense of an agreement. A good agent will ask you to sign a buyer's agency agreement or a disclosure of agency and negotiate accordingly.,

If you are an investor in Wisconsin and your agent is giving you advice on how to negotiate, and you are not in a buyer's agency agreement.... RUN AWAY.   An agent that is incompetent or unethical in the area of agency probably has other professional short comings as well. You need someone who is clear on the law, on ethics, and is thoroughly competent to represent your best interests.

If you are concerned about being "locked up" ask for a provision in the agreement that will allow you to either "FIRE" your agent, or give you some additional freedom's to also find properties on your own.

For more information on buyer agency for investors, call Ralph Nudi at Weichert, Realtors® - Unum Properties,

at 262-997-0668

Ralph D. Nudi

CEO

Success Realtors

 

Comment balloon 0 commentsRalph Nudi • March 28 2007 11:09AM

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