In principle, an agent is a representative that is bestowed and granted powers to act on behalf of his principal regarding a particular function. In this case, the agent has a legal obligation to exercise restraint and act within the confines of the powers granted to him and nothing more. Excessive use of agency powers is a violation of the rules of the agency relationship, and therefore a guilty agent will be held personally liable in as far as the excessive force is discernable.
Agency is envisioned in many disciplines across the world, and the real estate industry leads the way. In real estate, an agency relationship can be instigated through express appointment or impliedly. Also, in the industry, we have the sellers and buyers agents who have very distinct responsibilities. A seller’s agent is charged with the responsibility of advertising and procuring the best offers for the property. This agent must ensure that the property is in an appealing condition throughout the period of sale. Further, the agent should always be able to avail the house for inspection whenever potential buyers require.
However, the roles of a buyer’s agent are much more diverse. The responsibility is enormous and to fulfill such a mandate the agent must be keen to play the following roles;
Acquire a mortgage lender
The buyer’s agent must ensure that an appropriate mortgage lender has duly prequalified his client. In most times prospective buyers prefer to take out a mortgage, and it is the responsibility of the agent to ensure that he procures a lender that offers appropriate rates, terms and conditions of pay.
The agent must be able to schedule several showings for the buyer to see the kind of homes that are in the market and also analyze the market values of the preferred houses. The agent must contact the seller or the agent and endeavor to agree on a timeframe that suits the buyer. Showings are an integral process of a conveyancing transaction because it is an opportunity for the prospective buyer to view the house in great detail.
Write, submit and negotiate offers
In consultation with the buyer, it is the roles of the agent to draft an appropriate offer and submit it to the seller and his agent. Thereafter the agent will receive a counteroffer, and that is when negotiation commences. In this regard, the agent must be equipped with supreme communication skills to ensure that the settlement is acceptable to his client.