NAEBA press release
The National Association of Exclusive Buyer Agents has released comments regarding the case that has found the national spotlight in which a couple sued their agent. You can read more about the case at MSNBC. Please read the press release below and feel free to comment with your thoughts.
BUYER AGENT ORGANIZATION COMMENTS ON UMMEL HOME BUYING CASE
The case of Marty and Vernon Ummel suing their real estate agent has increased media interest in the home buying process. The National Association of Exclusive Buyer Agents (NAEBA) suggests that this case be an important reminder to homebuyers that they need to be fully aware of their agent’s motivations and allegiances. Not all real estate agents will have the buyer’s best interest at heart. NAEBA recommends that buyers ask these four important questions before entering into a relationship with a real estate agent:
1. Will they discuss and evaluate the properties you view together and compare each property shown with your ideal property?
2. Before preparing an offer to purchase, will the real estate agent inform you about any defects or problems he/she has observed or in any way discovered.
3. Before preparing an offer on your behalf, will the real estate agent prepare a comparative market analysis, including explanations and documentation, to determine the market value of your potential purchase?
4. Finally, ask the agent to sign a contract that sets out explicitly the fact that they are working for you exclusively.
“Under the common law of agency, a buyer’s agent should always provide and discuss relevant valuation information with a buyer client,” said Barry Nystedt, President of NAEBA. “This certainly includes comparable sales data. However, many state real estate associations have worked to get legislation passed that distorts the buyer agent relationship to limit the liability of the real estate companies. Buyers need to understand who they are hiring and under what terms.”
“If the Ummel’s complaints are found to be true, then their “buyer agent” clearly breached his duties under common law,” continued Nystedt. “But, not knowing more of the specifics of the relationship and how the events unfolded, it is difficult to draw other conclusions at this time. If a buyer chooses to use agent representation such as the hybrid dual buyer agents currently being promoted by a national real estate trade associations, then buyers must be very careful to understand the level of service that the brokerage/agent is offering.”
The National Association of Exclusive Buyer Agents was founded in 1995 to help consumers become educated homebuyers. NAEBA is a nonprofit organization whose purpose is to be the “champions of real estate buyers’ rights and representation.” NAEBA offers industry standard certifications, ongoing education, client referral services, technology and information sharing. The NAEBA Code of Ethics pledges undivided loyalty to real estate buyers only. More information about NAEBA can be found at www.naeba.org.