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March 2019   Volume 45, Number 3      
 

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Homebuyers, Homesellers Lack Understanding of Real Estate Agent’s Role

The majority of homebuyers and sellers believe that real estate agents work exclusively on their behalf. However, a new report from the Consumer Federation of America (CFA) has found this is not always true.

“Today, many homebuyers and sellers do not know whether their agent is representing their interests, those of the other party or those of neither,” said Stephen Brobeck, a senior fellow at CFA and the report’s author.

While most agents try to work ethically, Brobeck says that some do not. The report also found the majority of consumers don’t understand the difference in real estate professions — from the agent to the subagent, transactional agent and designated agent roles.

Differing state laws have also contributed to the problem as some legal disclosures are only required to be given orally in some states and may not even be required during the early stages of a home purchase. State officials have not made much effort to enforce disclosure laws. The report urges states to make reforms regarding disclosure documents, suggesting that dual agency representation be prohibited in all states, clearly written and verbal communication be given early on to explain the agent’s role and fiduciary responsibility and that state real estate commissions work harder to develop more effective disclosure documents.

“More informed homebuyers and sellers will make better decisions. They will have a higher regard for, and complain less about, real estate agents,” said Brobeck.

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In this issue:

10 Best States for Real Estate Investors

Government Shutdown Impeded Some Real Estate Activity, Says NAR

Falling Mortgages Will Stabilize Builder Confidence Says NAHB

Credit Reporting Changes for 2019

Homebuyers, Homesellers Lack Understanding of Real Estate Agent’s Role

Millennials Are Not Buying Homes Due to Student Loan Debt

New Career Advancement Network Launched for Real Estate, Mortgage Professionals

The U.S. Real Estate Markets Where It Is Cheaper to Rent Than Buy

Zillow Offers to Expand into Five New Cities Later This Year

How to Stay Cool When Your Real Estate Business Heats Up

 


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