15 Valley Farms Road
Fairfield, Maine  04937
1-207-380-7333

Ok, now, stop right there. If you have never engaged with a real estate agent in Maine over the past few years, and you are reading this for the very first time, you might be rolling your eyes at this point and saying to yourself, "Customer?" "Client?" They are the same. It is just a play on semantics. If a lawyer were to ask you if you wanted to be a customer or a client, you might chuckle. If a doctor were to ask you if you wanted to be a patient or a customer, you might wonder if you are seeing the right doctor. Well, you likely will have the same reaction to a real estate agent. Especially since the qualifications to become a real estate agent are far less than other professions.

In Maine, however, it is a state regulation administered by the Maine Real Estate Commission that requires all licensed real estate agents to present a form that explains real estate agent relationships and specifically states the two different options for both buyers and sellers of real estate: customer or client. And, it is a requirement for any licensed agent to present this information to any prospective buyer or seller prior to any significant conversation in regards to any specific real estate property or transaction of real estate. This requirement, however is not applicable for those who are seeking to purchase land; residential properties of more than four units; commercial, agricultural or industrial types of real estate.

Choose to be a Customer: Many people might think that, "hey, wait a minute here, I don't have TWO choices - I have THREE choices. I can choose to be neither a client or a customer. That's my perogative. I don't want to be either.". In theory, this person would be correct. But, in Maine, if a buyer uses a real estate agent in any way whatsoever, the designation of that buyer is only given one of the two levels of services. So, a buyer who refuses to be neither, yet still wants to be shown a parcel, can still be shown real estate by an agent, but that agent is required to treat that buyer as a customer with limited services, but the same services as one who actually chooses to be a customer.

Services an agent can provide customers include honesty.

Choose to be a Client: Before July of 2006, a buyer could become a client without the relationship being a written contract between the buyer and agent. Since July, however, all buyer client relationships must be in writing. The length of the term of the relationship can be as short as one day or as long as the two agree. The terms of the relationship are also negotiable and the level of services provided by the agent can also be negotiated. The basic level of services generally provided to buyers from real estate agents include providing advice and assistance to the buyer to help the buyer get the best possible price and help find the right property that is most desireable by the buyer. Of course, buyers also get the same services afforded to customers.

Unfortunately, some buyers have either not been made aware of the services or have not fully understood the differences between the two and what is involved. Some customers can become quite frustrated that questions they have about particular properties are not answered to their satisfaction. In fact, some potential buyers call or email and ask questions hoping to get answers but do not get the answers or advice they are seeking because the agent is limited to a customer relationship with a new potential buyer.

Two of the primary factors on the minds of most buyers who are confronted with the written buyer-client relationship are commitment and money.

Commitment: The issue for commitment goes both ways and should be concerns for both buyers and real estate agents. For buyers, they might not want to be limited a search of properties that are only those that are among the list of properties offered by that particular agency or those that are included in the state multiple listing service (MLS). They may want to also consider the purchase of foreclosures, auctions and FSBO's (properties offered for sale by owners who haven't listed with an agency - For Sale By Owner).

In addition, the buyer might not yet be confident that the agent they initially have been talking with is the person that they want to commit to as they a sense of report may not have been established to a comfortable level for the buyer. Is this agent competent, intelligent, knowledgeable, agressive, responsive, accessible, available and easy to work and get along with?

Most, if not all real estate agents in Maine work on a straight commission basis without reimbursement for mileage and expenses incurred while working with buyers. So many have concerns in regards to commitment as well. Is the buyer pre-qualified, pre-approved, a cash buyer, or a credit score that's in the tank - and how long of a commitment is the agent willing to make with a buyer who is new to the market and no report has been established?

These issues are resolved with negotiating the buyer-client relationship to a term that is acceptable to both parties. One important factor about the buyer-client relationship is that the relationship the buyer engages in is with that of the agency, rather than the agent. The agent is appointed by the agency, so the designated broker for the agency can at any time requested by the buyer to appoint a different agent within the agency. So, having confidence in an agency may be more important to a buyer than a particular agent. However, the agent and the buyer are making a commitment to each other which the term of that commitment can be negotiated to a satisfactory time period comfortable for both.

Money: Probably the biggest question on the minds of buyers when the consider entering into a client relationship with a real estate agent is, "How much is it going to cost me?" This question is a very important question and it should be answered with clarity and understanding for the potential buyer so that he or she will know exactly what the commitment of money will be. For sellers, there is usually much more clarity maybe because of tradition. Most sellers understand the cost of entering into a listing agreement with a real estate agent will ultimately depend upon the sales price and that they agree to pay a percent of what the property sells for.

Unfortunately, the correct answer for both buyers and sellers is that the cost to both may very depending upon the overall services requested. For example, if a seller is adamant about their $150,000 home be advertised weekly in the Boston Globe until it sells, then the agency negotiating the listing agreement may be willing to pay 100% or 50% or 0% of the additional costs of advertising that might be outside the traditional places of advertising properties listed with that agency. Traditionally, however, most sellers are comfortable with the agencies regular choice of advertising and promotion of their properties and are comfortable with agreeing to pay only the commission of the sales price.

Buyers, on the other hand, are traditionally used to the idea of not paying a real estate agent any money at all when making their purchase. This tradition holds true today, even with agents exclusively representing a buyer and assisting in the negotiation of the best possible price for their client. So, for a buyer, the idea of signing a written agreement with a real estate agent which includes a percentage of the sales price or other possible financial terms is not easily understood that it is not going to end up costing the buyer any money. Although, this may not be true with all agreements.

As an example, a buyer who negotiates with an agent to assist in the purchase of Maine property, and one who would like to include FSBO's, auction property and foreclosures among the properties they would like to be made aware of by the agent, then the agent, for these types of purchases, may need to have some sort of financial incentive to do this extra effort and, as a result, may require a percentage of the sale which would ultimately come out of the pocket of the buyer at closing. However, a buyer who would rather not do such a thing might want to negotiate these situations at the time of signing a client agreement.

An example would be including a clause in the agreement whereby if a desired property is found for the buyer, that the offer to purchase the property include a clause that would have the seller pay a percentage of the sales price at closing.

Understanding the No-Cost Exclusive Buyer-Client Agreement

Most real estate agencies in Maine use the state-wide multiple listing service for a reason: to expose properties to a wider audience resulting in a higher price for the seller. This greater exposure is made possible as most agencies co-broke their listings. Basically what this means is that the agency who holds the listing of a property is willing to pay equally to another agency which brings a buyer who ultimately closes the sale.

So, before July of 2006, the agency representing a buyer who ultimately closed on a property that was listed by a completely different agency was compensated (split) by both agencies. This arrangement was done without any written buyer client agreement. Both agencies and agents were compensated from sharing the commission paid by the seller at closing.

Today, the same arrangements are made, and a buyer can have written buyer-client priviledges without paying any money at all with the understanding that the agent representing the buyer will, at closing, be compensated through the same split of the overall commission paid by the seller.

Please do not infer that this arrangement is made by all agents and all agencies. I have made and continue to enter into Exclusive Buyer Client relationships which do not result in any payment made by the buyer.

Summary: There are two levels of services available for buyers of real estate in Maine. I offer Buyer Client Agreements at no cost to qualified, approved and cash buyers. For those who are not qualified, approved or cash buyers, I am willing to negotiate terms that would be mutually agreeable to both parties. I offer a free initial consultation.