Montana Homes & Land recognizes that buying or selling real property is a significant financial undertaking. You have taken an important first step by contacting, Bonnie Lynn, a Realtor® (hereafter Realtor) with over 33 years of experience in real estate to assist you in your sale or purchase. Both Realtors and real estate licensees are licensed by the State of Montana to practice real estate. However, only real estate professionals who are members of the National Association of Realtors and subscribe to its strict Code of Ethics may call themselves Realtors. All Realtors pledge under Article 1 of the Code of Professional Ethics to promote and protect their client's interests, and to be honest to all parties in a real estate transaction. (Click Here for more information on the Realtor designation.)

To avoid misunderstandings and to make sure you have adequate information so that you may know what to expect, the following questions and answers cover some common issues regarding the Realtor's responsibilities to the seller, the buyer, and other appropriate professionals. The following is intended to provide both buyers and sellers with valuable information about the various relationships, obligations, and responsibilities that can arise in a real property transaction.

An agency relationship is a voluntary relationship in which one person, the "agent," agrees to act on behalf of another, the "principal." Agency relationships are more satisfying to both principal and agent if all parties understand the scope of the responsibilities of each in the transaction. Agency relationships between sellers and Realtors and between buyers and Realtors are customarily put in writing. On the selling side, this is usually done in the listing agreement. The listing agreement is a contract. It spells out the principal's and the agent's duties and responsibilities. With the creation of a listing agreement, the Realtor becomes the seller's agent. Buyers who use a Realtor to represent them must enter into a written "buyer-broker agreement" with an agent. As with sellers, the Realtor will work directly for the buyer. A buyer-broker agreement serves basically the same purpose as a listing agreement - it sets out each party's duties and responsibilities.

Often buyers initially work with multiple real estate licensees. Buyers should be aware that until a buyer-broker agreement is signed, the agents are working only on the seller's behalf. For that reason, buyers should ask about a written buyer-broker agreement if they want a Realtor, to act as their agent in a transaction.

"Dual agency" may be established if one or more Realtors represent buyers and sellers from the same real estate organization. Dual agency allows a buyer's agent to work with both the buyer and the seller when the agent or the agent's company already lists the property the buyer is interested in. Realtors can act for both the buyer and seller in such a transaction if both the buyer and the seller expressly authorize it.

What Is a Realtor?

The terms agent, broker, and Realtor are often used interchangeably, but have very different meanings. For example, not all agents (also called salespersons) or brokers are Realtors.

As a prerequisite to selling real estate, a person must be licensed by the state in which they work, either as an agent/salesperson, or as a broker. Before a license is issued, minimum standards for education, examinations, and experience, all determined on a state-by-state basis, must be met.

After receiving a real estate license, most agents join their local board or association of Realtors, the Montana Association of Realtors and the National Association of Realtors, the world's largest professional trade association. They can then call themselves Realtors. The term "Realtor" is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors and subscribes to its strict Code of Ethics (which, in many cases, goes beyond state law).

In most areas, it is the Realtor who shares information on the homes being marketed through a Multiple Listing Service (MLS). Working with a Realtor who belongs to an MLS will give you access to the greatest number of homes.

Using an Agent and the Obligations That Are Owed to You

An agent is bound by certain legal obligations. Traditionally, these common-law obligations are to:

• Put the client's interests above anyone else's;
• Keep the client's information confidential;
• Obey the client's lawful instructions;
• Report to the client anything that would be useful, and
• Account to the client for any money involved.

NOTE: A Realtor is held to an even higher standard of conduct under the NAR's Code of Ethics.

In recent years, state laws have been passed setting up various duties for different types of agents. As you start working with a Realtor, ask for a clear explanation of your state's current regulations, so that you will know where you stand on these important matters.

The Difference Between a Buyer's and a Seller's Broker

Suppose you sign an offer to buy a home for $150,000. You really want the property and there's a chance other offers are coming in, so you tell the broker that "We'll go up to $160,000 if we have to. But of course don't tell that to the seller."

If you're dealing with a seller's agent, he or she is duty-bound to tell the seller that important fact. The seller's agent doesn't have any duty of confidentiality toward you. Honest treatment might require that the agent warn you that "I must convey to the seller anything that would be useful so don't tell me anything you wouldn't tell the seller."

TIP: If you're dealing with seller's agents, it's a good idea to keep confidential information to yourself.

These days many homebuyers prefer instead to hire a buyer's broker, one who owes the full range of duties, including confidentiality and obedience, to the buyer. A buyer's broker is often paid by the seller, regardless of the agency relationship.

How to Evaluate an Agent

In making your decision to work with an agent, there are certain questions you should ask when evaluating a potential agent.

The first question you should ask is whether the agent is a Realtor. Then ask the following questions:

• Does the agent have an active real estate license in good standing? (To determine this information, you can check with your state's governing agency.)
• Does the agent belong to the Multiple Listing Service (MLS) and/or a reliable online homebuyer's search service? (Multiple Listing Services are cooperative information networks of Realtors that provide descriptions of most of the houses for sale in a particular region.)
• Is real estate his or her full-time career?
• What real estate designations does the agent hold?
• Which party is he or she representing--you or the seller? The discussion is supposed to occur early on, at "first serious contact" with you. The agent should discuss your state's particular definitions of agency, so you'll know where you stand.
• In exchange for your commitment, how will the agent help you accomplish your goals?
• Will the agent show you homes that meet your requirements and provide you with a list of the properties he or she is showing you?

How Your Agent Works for You

Like many sellers, you might assume that your real estate agent's job is to help find a buyer for your home; however, this is only the beginning. The following is a list of other tasks that your agent performs on your behalf.

• Explains basic Real Estate principles

The process of selling a home

Discusses agency relationships

Walks you through the purchase and sale agreement

• Researches Your Home's Value

Provides you with a comprehensive Comparative Market Analysis

Assists you in determining a price that will provide you with the highest return in the shortest period of time

Markets Your Property

Assists you in preparing your home for a good first impression

Markets your home to buyers, and other real estate agents with buyers, who are looking for homes in your price range

Keeps you up to date on current market activity so you can make informed decisions

• Negotiates The Purchase

Assists you in working through the purchase and sale agreement

Negotiates with the buyer and buyer's agent on your behalf

Tracks contingencies and makes certain contract deadlines are met

• Helps Close the Transaction

Works with the Title Company to make sure all the documents needed are in order and are completed in a timely manner

Can assist you with moving services and other home related services

Marketing Your Property

When Montana Homes & Land markets your property, you benefit by receiving our customized approach, tailored just for you.

Preparing Your Home

Montana Homes & Land will assist you in effectively preparing your home so your property makes a good first impression to potential buyers. Attention to the exterior and interior appearance of your home is proven to reduce market time and may increase final sales prices.

Marketing Information Sheets

Custom-prepared information on your home enhances the marketing process. Buyers, and other agents representing buyers, realize the unique features of your home. The advantages of your property are remembered when your home is compared to other properties competing for the same buyer.

Multiple Listing Service

Montana Homes & Land cooperates with all members of the local multiple listing association. Your property is marketed to real estate agents with other firms who are representing buyers.

Advertising

Montana Homes & Land advertises on the Internet (see below), in HomeSeekers magazine, Montana Land Magazine, and the Bozeman Daily Chronicle.

Showing Your Property

Real estate agent open houses; controlled access to your property; activity updates; buyer qualification; area-wide agent preview.

All real estate agents are invited to preview your home to become familiar with its features and benefits on pre-scheduled days to assist in generating immediate interest, facilitate marketing and minimize inconveniences to you, and market your home to all agents working with qualified buyers.

Controlled Access to Your Property

Internet

Montana Homes & Land's website is an effective marketing tool for attracting buyers. Our website allows buyers to learn about properties that they may not otherwise know about. Buyers may contact Montana Homes & Land immediately by email, phone, or fax. Your home will be exposed to the growing number of buyers that prefer to shop through the Internet. Whether your home's new owner turns out to be from around the corner, or half-way around the globe, our website offers you a far-reaching means to market your home.

First Impressions Make a Difference

Experience shows that taking time to prepare your home:

• increases desirability
• provides a marketing "edge," and
• results in shorter market time while assuring the highest return

Before Buyers Come to Your Home

• Turn on all inside lights, even during the day.
• At night, turn on outside lights.
• Turn on soft music.
• Quick vacuuming.
• Remove all clutter.
• Keep temperature comfortable.
• Kitchen and bathrooms should sparkle.
• Keep pets in a separate area; change litter boxes daily.
• Put money and other valuables away and out of sight.
• Keep draperies and shades open.
• Open all doors inside the home, except closets.
• Make sure front walkway is clean and clear of any clutter.
• Remove clutter from the yard.
• Cut and edge grass.
• Trim hedges and weed gardens.
• Paint, fix or wash railing, steps, storm windows, screens, and doors.
• Clean gutters.
• Wash windows.
• Straighten up garage.
• Paint, wash, and fix garage doors and windows.
• Repair dripping faucets and leaky toilets.
• Replace all burned-out light bulbs.
• Oil door hinges, tighten door knobs.
• Give home an overall and thorough cleaning.

When an Agent Shows Your Home

A buyer will likely spend more time previewing your home if you are not in the home Buyers feel more comfortable looking a home and asking questions if they don't feel they are intrusive. If possible, it is best to vacate the property during all showings. Don't precede or follow the buyer through you home. Let the sales associate show and sell your home.

Key Market Factors

How long does it take to sell a home? There is no easy answer. Some homes sell in a few days, others may take several months. Recognizing the key factors influencing marketing can give you significant control over the time it takes to sell your home. The proper balance of these factors will expedite your sale.

Maximizing Your Home's Selling Potential

A clean home in good repair sells much more readily than one in poor condition. Identify the areas of your home that need improvement. Look at your home as if you were considering buying it as your new home.

A Realtor Does Not Control:

Location: Location is one of the greatest factors affecting the value of your home. Neighborhood desirability is key to a property's fair market value.

Timing: The real estate market may reflect a seller's market. Marketing conditions cannot be manipulated; an individually tailored marketing plan must be developed accordingly.

Competition: Buyers compare your property against competing properties. Buyers interpret value based on other available properties.

Realtors Do Control:

Price: If your property is not properly priced, a sale may be delayed or even prevented. Reviewing the Comparative Market Analysis will assist you in determining the best possible price.

Terms: The more terms available, the broader the market, the quicker the sale and the higher the price you'll receive. Terms structured to meet your objectives are important to successful marketing.

Condition: Property condition affects price and speed of the sale. Optimizing physical appearance and advance preparation maximizes value.

How Much Is My Home Worth?

Request a comparative market analysis of homes similar to yours from Montana Homes & Land.

Buyer Qualification

Montana Homes & Land's sales associates prequalify prospective buyers to determine their ability, readiness, and willingness to buy your home. Prequalification positions buyers to take action quickly. Screening allows sales associates to focus attention and energy on matching buyers with sellers.