Ever-Changing Real Estate Market
What's happening in real estate these days? First and foremost, there are great opportunities. Secondly, short term rentals are on the upswing. Thirdly, a dialogue on "agency" and how to get the best representation for your real estate transactions is at hand.
Opportunities are everywhere. There are great prices on homes as the market continues to put downward pressure on sellers. If you are serious about selling, your price has to be realistic and considerably lower than it would have been in 2006. There is a lot of competition, so the condition, location, and amenities of a house or condo are very important. There is an increase in land sales as building is an alternative to an overpriced market. There are great commercial opportunities as well with terrific options for buying established businesses (see article photos).
Short term rentals are doing very well, with bookings into next summer already. This bodes well for next season and for investment purchasers interested in short term rental income. Rental rates are higher and the property is available for owner use as well.
"Agency" or representation has become a point of discussion. Traditionally, the realtors represent the seller, who in turn pays the commission. Do you need a Buyer's Agent? Who will represent your best interest if you are a buyer but your realtor works for the seller? You will need to have a conversation about agency and representation.
"Agency" by definition is when one person acts on behalf of and under the instructions of another. There is further a distinction drawn between a "client" and a "customer". A client is someone with whom there is a contractual arrangement and to whom an agent may have fiduciary responsibilities regarding accounting arrangements, confidentiality, etc. In both relationships, an agent owes good faith, honesty, fairness and disclosure of material facts, etc. There are cases of dual agency where the selling realtor is also the listing realtor.
Realtors provide important information as you navigate the buying or selling process. They know where properties are located, what properties are selling for, resources for surveying, inspecting, and financial assistance. They have access to statistical information. They may also know local opinion on what properties are desirable or undesirable. They have a fiduciary responsibility to keep financial information confidential. It is important for buyers and sellers to have confidence in their realtor's honesty, integrity, and reliability.
Perhaps the answer lies in disclosure. A realtor acting as agent owes the duties of obedience, confidentiality, disclosure, reasonable skill, care, and diligence to all parties in a transaction. If you feel that your realtor is dealing honestly and in good faith, then the realtor is fulfilling his or her agency responsibilities, regardless of whether the realtor is representing the seller or the buyer.
If you would like assistance with any of your real estate needs, please call one of our experienced members of Calabash Real Estate. Telephone: 340-718-5285 or visit our website www.CalabashRealtors.com