Do You Want to Be a Client or A Customer?

Whenever I consult with a prospective buyer, I ask them whether they want to be a client or a customer?  You might not think that there is much difference between a client and a customer.  However, for a Metro Atlanta Realtor, there is a very important distinction between the two.

You see, under Georgia law, a real estate agent cannot represent a buyer as a "client" unless he or she has signed a Buyer Brokerage Agreement.  Once a buyer becomes a client, I am able to represent them through all aspects of the transaction.  Specifically, I can:

1. Assist my client is identifying homes he or she would like to see and arrange showings;
2. Advise my client on how much to offer on the home he or she ultimately decides to purchase;
3. Draft the offer;
4. Represent my client in negotiations with the seller;
5. Assist my client in identifying a qualified home inspector; and
6. Perform a myriad of other services as the transaction progresses to closing.

These are critical services, especially for first time home buyers and buyers who have not purchased a home for a while.  Despite this fact, many people balk at the idea of signing a Buyer Brokerage Agreement.  That is until I explain what it means to be a "customer".

Under Georgia law, a real estate agent is allowed only to perform ministerial duties for a customer.  What does this mean?  It means that all I can do for a buyer who is a customer is help them find the house he or she wants to make an offer on.  I CANNOT:

1. Advise my customer on how much to offer;
2. Draft the offer; or
3. Engage in negotiations with the seller on behalf of my customer.

In essence, once my customer identifies a property on which he or she would like to place an offer, my role is that of a secretary.  I can provide my customer with a blank contract, but, after that, the customer is on his or her own to figure out how much to offer, fill out the contract, and negotiate with the seller.

So, do you want to be a Client or a Customer?

For more information about buying or selling a home in Metro Atlanta, contact me at 678-446-5925.