Fiduciary Duties

People often question the motives of Realtors. It makes sense. Realtors receive a commission based on the selling price of a home. I think it’s reasonable to assume that they might influence you to purchase a home which they can earn a higher commission, or sell a home at a lower price in order to induce a quicker sale.

However, Real Estate is a regulated business. State law with regards to fiduciary duties dictate that agents must put their clients interests ahead of their own. A car salesman, some financial consultants, and other businesses do NOT have a fiduciary relationship with their client and can profit from them. Realtors who profit at the expense of their client commit fraud and are subject to severe penalties.

Realtors work primarily through referrals. They want to build a solid relationship with you so that they can earn your business this year, gain referrals for friends and family that may purchase homes in the upcoming years, and work again with you when you move out. It makes sense both from a moral, legal, and economic point of view to do everything in their power to help their client.

Any questions or for FREE customized Market Reports, automatic email updates on properties that fit your criteria, or Realtor Referrals, please EMAIL ME or call me at 734-478-9270. -Anwell Tsai