In its simplest form, this document says one thing: Until such a time as you officially hire me to be your agent, I work for everyone but you. Even if I am showing you houses listed for sale by other agents. I still work for those sellers.
As such, until you decide to hire me, don’t tell me anything confidential about yourself. Examples:
- Don’t tell me how much money you make
- Don’t tell me your motivation for moving
- Don’t tell me your sense of urgency
If you tell me these things and then you decide to hire a different agent and, of all things, you end up wanting to buy a house that I actually am selling, now I will know these things about you and it will give my sellers an unfair advantage over you.
I might now know that you won the lottery. Or you have to be out of your other home in just three weeks. And so on and so forth. This kind of information is what puts you at a disadvantage during negotiations.
Hopefully in your conversations early on, you will not share anything to that extent. Nevertheless, you need to keep this in the back of your mind until you do decide to officially hire me as your agent.
Once you hire me, I will usually become your “designated” agent, which is the way I prefer to work…that is, only for one party or the other, not both (or as a “dual” agent). Once you hire me as your Designated Agent, you can, and should, share information with me that will be needed as we work on your home purchase. I will be loyal and obligated only to you and it is my job to hold this information in confidence from that point forward.
Should we come upon a situation in the future where I also represent the sellers, I will have to stop at that time and gain permission from you, the sellers and my management team to step into a role of being a Dual Agent. If everyone is not totally comfortable with that option, I will then have to refer both parties to other agents to finish the transaction. We always have to do what is best for you.
If you would like to see a sample of this document, let me know and I will forward a copy to you. As always, please don’t hesitate to ask questions or share your concerns if you don’t understand something.