BUYING A HOME SERIES: Customer or Client?

Catherine Zerba's
BUYING A HOME SERIES:

Do I want to be a Customer or a
Client with my REALTOR®?
( in the Purchase of a Home)
All presentation content Copyright 2012 Catherine Zerba, REALTOR.
All rights reserved. Catherine Zerba is a licensed REALTOR with Keller Williams Realty.

Do I want to be a Customer or a Client
with my REALTOR® ?
All presentation content Copyright 2012 Catherine Zerba, REALTOR®. All rights reserved.
Catherine Zerba is a licensed REALTOR with Keller Williams Realty.
•  You, the Buyer/Consumer, have 2 options as a Buyer in
purchasing a home; 1) You can be in a Customer
relationship with your REALTOR® OR 2) You can be in a
Client relationship with your REALTOR®.
•  What are the differences between the two?
•  The NH & MA ‘Agency Brokerage Relationship Disclosure’
forms explains the differences in an abbreviated manner.
Thus, the reason I want to educate you,
of YOUR choices, to better inform you
as a consumer purchasing real estate.

(con’t) Do I want to be in a Customer or a Client
relationship with my REALTOR® ?
•  The NH & MA Real Estate Commissions require
REALTORs to present (and have you sign) the
‘Brokerage Relationship Disclosure’ form at a ‘first
business meeting’.
•  REALTORs should present and review this form with
you to inform you of your choices so you understand
how you are, or can be, represented in a real estate
transaction. It’s the law! Note: it is a Disclosure, NOT
a contract!
All presentation content Copyright 2012 Catherine Zerba, REALTOR. All rights reserved.

#1 - Do I want to be a Customer?
•  In the Customer relationship, the REALTOR® is
working with you. The REALTOR® is there to guide
you through the process.
•  You are provided with; ministerial acts, fair &
honest dealings and disclosure of any known
materials facts about the property.
•  In this relationship you are a
Customer and provided with
limited services. This relationship
is also called a “Facilitator”.

(con’t) Do I want to be a Customer?
•  In the Customer relationship, the REALTOR® does not;
represent your best interests. The REALTOR® does not owe
you a fiduciary relationship. The REALTOR® does not
advocate for you.
• The responsibility to complete any due diligence on the
property, or properties you are considering purchasing,
resides with you as the purchaser.
•  In this Relationship, the REALTOR® is compensated by the
Seller through the co-broke fee being offered by the Seller in
MLS (Multiple Listing Service). Hence, there is typically no
cost to you as the Buyer.

Why would I want to be a Customer?
• You want to work the process with your own
knowledge.
• You do not want confidentiality. Note: the
REALTOR® can elect to maintain confidentiality
but does not have a duty to do so.
• You do not want advice or representation or the
REALTOR® to advocate for you.
• You do not want to compensate
or “hire” a REALTOR®.
Catherine Zerba is a licensed REALTOR Keller Williams Realty.

What duties can a REALTOR® perform
with me as a Customer?
• Ministerial Acts (i.e. scheduling
appointments to view homes, making
any basic requests)
• Accounting for all Funds (escrow
deposits)
• Reasonable Care & Skill
• Fair & Honest Dealings
• Disclosure of all Material Facts (of
which the REALTOR® has knowledge)

#2 - Do I want to be a Client?
•  In the Client-REALTOR® relationship, The REALTOR® is
working for you. The REALTOR® can provide you with
their expertise, knowledge and advice/opinion, and can
advocate for you.
•  You are provided with the duties/services of the
Customer relationship as well as provided with a
fiduciary relationship & Client level services.
•  The REALTOR® acts in YOUR best interests and should
complete due diligence on any property you are
considering purchasing.
•  The REALTOR® is held to a higher
standard by their Real Estate Commission.
(i.e. more accountability)

(con’t)Do I want to be a Client?
•  As a Client the REALTOR® is your Buyers Agent. A Buyer
Agency Agreement is signed. Think of it as the ‘flip side’ of
a Listing Contract to sell your home, only the REALTOR®
is managing the process of the purchase of your home.
•  In this Relationship, the REALTOR® may specify a
minimum fee for their services. If the fee the REALTOR ®
is charging you is not covered by what the Seller is
offering as the co-broke fee in MLS (Multiple Listing
Service), you would be responsible for the difference.
This cost can be included as a Seller concession or
closing cost.

Why would I want to be a Client?
•  You want representation.
•  You want the REALTOR® to advocate for you.
•  You want a fiduciary relationship (loyalty,
confidentiality, diligence, etc)
•  You want to utilize the REALTOR®s
knowledge & expertise.
•  You see the value of paying for the
REALTOR®s services if their fee is not fully
covered by the Seller.

What duties can my REALTOR® perform
with me as a Client?
•  Promote your best interests, Be your advocate. (Find you
properties & Complete due diligence on the properties)
•  Fiduciary Duties
•  Advice, Counsel and Assistance in Negotiations (Complete a
Market Analysis on the Property you are pursuing, Suggest
favorable terms in the P&S Agreement, Strategize if you are in
a multiple offer situation, Strategize/offer their opinion with
you on counter offers and home inspection items)
•  Offer/utilize the REALTORs opinion, knowledge & expertise.

May I change from a Customer to a Client
relationship?
•  Yes, you may change your relationship with your
REALTOR® from a Customer to a Client. There are
certain points in a transaction that this can occur.
Consult with your REALTOR®.
•  Some consumers/Buyers like to work with their
REALTOR® in a Customer relationship for a period
of time to see if they are good business partners
before committing to a Client relationship.
Likewise, REALTOR®s sometimes
recommend the same.

Do REALTOR®s give priority to Clients
over Customers?
•  With a Customer, a REALTOR® is not obligated to any
specific criteria or a contract.
•  With a Client, a REALTOR® is performing under a contract.
They are held accountable. Again, think of it as the “flip
side” of a Listing Contract to sell a home and the REALTOR
is working for you to procure a home.

Customer or Client? Choose which option
works best for you!
• Do I want to be in a Customer and/Facilitator relationship?
or a Client / Buyer Agent relationship with my
REALTOR®?
• Consult with a licensed and competent REALTOR®, such
as me, to determine which option is best for you!
• Note: This is a limited overview of
the differences between the
Customer/Facilitator relationship and
the Client/Buyer Agent relationship.

BUYING A HOME SERIES: Customer or Client?

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