Kansas Buyer’s Agent: Real Estate 101

One of the most confusing things for most people to understand is who exactly a real estate agent is working for when they are buying or selling a home. Each state has their own particular rules regarding real estate transactions. For instance, I am licensed in the states of Kansas and Missouri. (For those of you not intimately familiar with the area the city is split in two by a road called State Line. On one side is Kansas. The other Missouri. Kind of like Western & Eastern Avenues in Washington, DC and Maryland.) Both states have their own set of rules and I have to adapt as I move from one state to the other.

Today I want to talk about Kansas. It is my home state! And in Kansas a real estate agent can represent you in one of three ways. You can download the brochure to get your own copy of the three. (You can also be unrepresented, that’s a whole other subject.) There is Seller’s Agency, Buyer’s Agency and Transaction Broker status. Over the course of this week I will discuss all three in detail. Today we will start with what you should be getting from a Buyer’s Agent.

The State of Kansas says:

BUYER’S AGENT

The buyer’s agent represents the buyer only, so the seller may be either unrepresented or represented by another agent.

The buyer’s agent is responsible for performing the following duties:

· promoting the interests of the buyer with the utmost good faith, loyalty and fidelity
· protecting the buyer’s confidences, unless disclosure is required
· presenting all offers in a timely manner
· advising the buyer to obtain expert advice
· accounting for all money and property received
· disclosing to the buyer all adverse material facts that the agency knows
· disclosing to the seller all adverse material facts actually known by the agent, including all material facts concerning the buyer’s financial ability to perform the terms of the transaction.

The buyer’s agent has no duty to:

· conduct an independent investigation of the buyer’s financial condition for the benefit of the seller
· independently verify the accuracy or completeness of statements made by the buyer or any qualified third party.

In short, the Buyer’s Agent is looking out for the Buyer’s best interest. Let me give you an example; REALTOR A has been working with Buyer A under an Exclusive Buyer’s Agency Agreement and Buyer A decides there is a For Sale By Owner they want to check out. (Another term, more correct, for FSBO is Unrepresented Seller.) So REALTOR A gives the Unrepresented Seller a call and identifies himself, his agency and his purpose of the call which is to set up an appointment. The Unrepresented Seller then decides he/she will work with the Buyer’s Agent and they work out a commission agreement before showing the home…in writing. During the course of these conversations the Seller says to the Buyer’s Agent, after having been told the Seller will be unrepresented, that the sales price is $100,000 but that they would take $97,500 for the house.

The house is shown to Buyer A and they love it. They decided to make an offer on the home of $99,000 because they really do not want to lose the house. Should the Buyer’s Agent:

  1. Write the offer for $99,000 because he will get a slightly higher commission?
  2. Keep the Seller’s $97,500 number private since the Seller told him in confidence?
  3. Advise the Buyer that the Seller confided in him that he/she would sell the home for $97,500?

I’ll await your answers… You can contact me by clicking on “comments” below or through the new feature of the IM by Meebo on the right column. The IM is already proving to be very popular.

2 Comments

Filed under Kansas City Real Estate, Misc. Real Estate

2 responses to “Kansas Buyer’s Agent: Real Estate 101

  1. Christy

    Hi Chris…I have been working my way through your posts from the beginning and have to know. Which is it? I would say 3, but wonder if it is a trick question.

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