What is agency? How does agency affect me? What is designated agency?

Agency is the first important thing to know about when working with an agent. Agency in itself is a relationship. This relationship is a beneficial relationship for you, the buyer. You have this relationship with the agent that you work with. By having someone work for you, that person would work as your agent, which is referred to as a designated agent.

What is so important about this agency relationship?

It is important because it is a vital factor when buying a home. This relationship is a structured, organized, and established relationship that ensures that there is someone who knows what they are doing looking out for your bests interest! Bottom line: Without agency, you'd be by yourself and left up to your own means to protect your interest.

As your agent, your agent will be experienced in the local real estate market. They are professionals in their field, which is only earned through experience, education, and research. And from that an agent can represent you and make sure that you get what you pay for.

So it is here with agency that everything is kicked off. You and your real estate agent agree with each other that we will be in an agency relationship. This can take the form of us signing a exlusive right to represent form agreeing to this representation or it can be a verbal expression with each other. Either way, you both are in understanding that your agent is looking out for you and protecting you (and ultimately your wallet). It is then that your agent becomes your designated agent.

An example of when it can be a detriment to buyers without this type of relationship is when buyers give information to the wrong party. They disclose certain details to another real estate agent that is not their designated agent and who is working for someone else. That agent can then use such information to his own advantage for the person he is working for. (This is not to say that agents are intending to take advantage of the other party, but agents do have a goal of getting their clients the best deal possible, which just so happens to be in opposition of the other party.) You the buyer, could ultimately have put yourself in a position where you lose monetarily. And it is for this reason that agency exists. The agency relationship exists so you can go to your agent and disclose to him everything knowing that you can trust him. Then the agent speaks for you to the other party, representing you, so that your best interests are never compromised. 

DUAL AGENCY:

Dual agency is a type of representation that isn't as common. It would come about if the buyer and the seller both were clients of a single agent. That agent would be acting as an agent for both the seller and the buyer. In this instance, that agent would still owe duties to both clients. That agent couldn't discuss with either clients the motivations or prices of either clients. That agent would also treat all clients with honesty. Basically, the agent would provide information for both clients so that they can make an informed decision. One difference in dual agency is that negotiation isn't a factor. Since there isn't another agent for the agent to negotiate with, each client would have to make a decision based on the facts that the agent provides them. The dual agent would act as a mediator between the clients conveying the information.

David Engle is a real state broker of Engle Realty in Baton Rouge, Louisiana near LSU. While his real estate company specializes in residential sales all over the capitol city, David specializes in properties near Louisiana State University. He has experience in both single-family and multi-family properties and daily works with buyers and seller in the LSU area. Address: 2552 Nicholson Dr. Suite A, Baton Rouge, LA, 70802 USA Contact Phone: (225) 937-4003 Website: http://www.EngleRealEstate.com/ Contact Email: David@EngleRealEstate.com