WHAT IS "AGENCY" AND WHY DO YOU CARE?

Agency is simply the legal relationship that exists between a Buyer or Seller and the agent/agent's broker.  It's important to realize that agency law varies from State to State so be sure you understand the duties that Mountain Home Idaho real estate agents owe you before entering into a Representation Agreement.  This is important (if dry) stuff so please read on.

I've found that the best way to explain the various agency relationships used in Idaho is with examples.  Let's assume you just arrived into town, already picked a house and are walking into a real estate office to find a local agent to guide you through the process.  If you prefer, pretend you're the Seller - the principle is the same.

Single Agency - The home you want is listed by a company other than whose office you're now sipping coffee.  As a result, there is no possibility of the conflict of interest that would arise if the home was an internal listing.  The agent is totally in your corner and can give you her best advice at every point in the transaction.

Limited Dual Agency with Assigned Agent - In this case your future home is actually listed by the same company that your agent works for.  No need to worry, the Broker will assign a different agent to represent the Seller and various internal safeguards are already in place to minimize the possibility of a conflict.  Once again, your agent is free to provide all the assistance and advice you need in your negotiations with the Seller.  It's important to note that most Idaho offices don't offer this form of agency (but we do!).

Limited Dual Agency Without Assigned Agent - Now the "wicket starts to get sticky".  Same scenario as the preceding except your agent must remain neutral in the transaction.  He'll be required to maintain information confidentially but can't provide you advice or assist you in negotiations - such a deal!  It may surprise you to know that this is form used by most Idaho real estate offices.  It get's even better when the same agent (not just agents from the same office) represents both Buyer and Seller.

NonAgency  At least there's no confusion with this one.  The Sales Associate you're working with won't be working for you but, if the house is listed by her office, will be working for the Seller.  She has no duty to keep your information confidential and may not be able to help you with pricing or negotiations.  I can think of absolutely no advantage to refusing some degree of representation but we have 2 or 3 people a year come in and insist they don't want to represented by "no dang reel-a-tore". 

Please Contact Me for further information about (and perhaps a better explanation of) agency representation. 

Jan DeGiorgio - Associate Broker
Century 21 Southern Idaho Realty
Mountain Home, ID