Real Estate FAQs

The Knowles Company has been operating a successful and professional real estate and rental business for over 125 years. We provide our clients and customers with professional, knowledgeable, and flexible representation, whether they are listing or purchasing a property. We combine local knowledge and a genuine love and respect for our island and regional community with the expertise and professionalism expected from an industry leader. The Knowles Company sales for Sellers and Buyers are annually on average more than $95 million in one of the state’s most competitive and exclusive markets.  Our 14 Brokers, many with more than 15 years of brokerage experience, offer a diverse and extensive background with a broad community network.  Sound judgment, common sense, and adherence to the “Golden Rule” coupled with knowledge, professionalism, enthusiasm, and determination will produce lasting success for both our clients and our company. We pride ourselves on treating our clients like family throughout the real estate journey and beyond.

Whether you are buying or selling a home, Realtors are members of the National Association of Realtors and subscribe to its strict Code of Ethics and professional standards.

• Act as an expert guide. Buying a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. A knowledgeable real estate agent will know what’s required in your market, helping you avoid delays and costly mistakes. Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.
• Offer objective information and opinions. A great real estate agent will guide you through the home search with an unbiased eye, helping you meet your buying objectives while staying within your budget. Agents are also a great source when you have questions about local amenities, utilities, zoning rules, contractors, and more.
• Give you expanded search power. You want access to the full range of opportunities. Using a statewide multiple listing service, your agent can help you evaluate all active listings that meet your criteria, alert you to listings soon to come on the market, and provide data on recent sales. Your agent can also save you time by helping you winnow away properties that are still appearing on public sites but are no longer on the market.
• Stand in your corner during negotiations. There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs and allows you to do due diligence before you’re bound to the purchase.
• Ensure an up-to-date experience. Most people buy only a few homes in a lifetime, usually with quite a few years between purchases. Even if you’ve bought a home before, laws and regulations change. Real estate practitioners may handle hundreds or thousands of transactions over the course of their career.
• Be your rock during emotional moments. A home is so much more than four walls and a roof. And for most buyers, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you when emotions threaten to sink an otherwise sound transaction.
• Provide fair and ethical treatment. When you’re interviewing agents, ask if they’re a REALTOR®, a member of the National Association of REALTORS®. Every member must adhere to the REALTOR® Code of Ethics, which is based on professionalism, serving the interests of clients, and protecting the public.

Maine law requires all real estate brokerage companies and their affiliated licensees (“licensee”) to perform certain basic duties when dealing with a buyer or seller. You can expect a real estate licensee you deal with to provide the following customer-level services:

• To disclose all material defects pertaining to the physical condition of the real estate that are known by the licensee
• To treat both the buyer and seller honestly and not knowingly give false information
• To account for all money and property received from or on behalf of the buyer or seller
• To comply with all state and federal laws related to real estate brokerage activity.
• Perform such ministerial acts as agreed between the parties to the transaction and the Affiliated Licensee.

Until you enter into a written brokerage agreement with the licensee for client-level representation you are considered a “customer” and the licensee is not your agent. As a customer, you should not expect the licensee to promote your best interest, or to keep any information you give to the licensee confidential, including your bargaining position.

For client level services:

If you want a licensee to represent you, you will need to enter into a written listing agreement or a written buyer representation agreement. These agreements create a client-agent relationship between you and the licensee. As a client you can expect the licensee to provide the following services, in addition to the basic services required of all licensees listed above:

To perform the terms of the written agreement with skill and care.

• To promote your best interests;
  1. For seller clients this means the agent will put the seller’s interests first and negotiate the best price and terms for the seller;
  2. For buyer clients this means the agent will put the buyer’s interests first and negotiate for the best prices and terms for the buyer.
• To maintain the confidentiality of specific client information, including bargaining information.

The Knowles Company has a policy of appointing a specific agent(s) (hereinafter “Appointed Agent”) within the Agency to represent you. This practice is authorized under Maine State law and is regulated by the Maine Real Estate Commission. An Appointed Agent will owe you, the client, fiduciary duties, which include among other things, the obligation not to reveal confidential information obtained from you to other licensees, except the designated broker or the designated broker’s designee for the purpose of seeking advice or assistance for your benefit.

A Buyer Agent is a realtor who enters into a written agreement with a Buyer to represent them in their search and transaction to a successful close. Buyer agents have access to real time data on properties for sale that are critical to Buyers consideration of a purchase. In the current highly competitive real estate market due to extreme low inventory of properties for sale, a Buyer Agent is essential to helping a Buyer with immediate notifications of properties when they come on the market.

• Once a property has been identified, the Buyer agent will set up showings, share research on the property with the Buyer so that the Buyer can be fully informed when at the showing.
• Once a Buyer decides to make an offer, the Buyer agent will prepare the offer based on the buyer decisions (after reviewing the research and comps with their Buyer agent), and present the offer.
• Once an offer is accepted, the Buyer Agent will coordinate required next steps for deposits, inspections, financing disclosures, and any other due diligence as set forth the Purchase and Sale Agreement, within the timelines required.

Managing the due diligence details and timelines required within a Purchase and Sale Agreement and communications with Listing Agent is one of the most critical roles a Buyer Agent has in a real estate transaction.

In certain situations a licensee may be asked to act as an agent for and represent both the buyer and the seller in the same transaction. This is called “disclosed dual agency.” Both the buyer and the seller must consent to this type of representation in writing.  The Knowles Company policy does not allow for Disclosed Dual Agency.

At the point of completing a Brokerage Agreement, the Affiliated Licensee shall make sure that the buyer understands that The Knowles Company does not practice Disclosed Dual Agency. In the event a Disclosed Dual Agency situation is about to occur, the buyer client may select another Affiliated Licensee from within the company to represent them, or the buyer may void the Brokerage Agreement and go to another company. If the buyer selects another Affiliated Licensee, the buyer will have to sign another Appointed Agent form for the new Affiliated Licensee and sign a form relieving the first Affiliated Licensee from representing the buyer.

A transaction broker means a real estate brokerage agency that provides real estate brokerage services to one or more parties in a real estate transaction without a fiduciary relationship as buyer agent, seller agent, a sub agent or a disclosed dual agent.  Duties and services of a Transaction Broker may be:

• Making all appropriate property disclosures,
• Accounting for all money and property received,
• Performing such ministerial acts as agreed between the parties to the transaction and the Affiliated Licensee.
  • Ask the buyer about the buyer’s needs and wants
  • Treat both the buyer and seller honestly and not knowingly give false information
  • Direct the buyer to a lender for pre-qualification and mortgage assistance
  • Give the buyer blank brokerage forms to review
  • Use the multiple listing service and other resources to locate properties
  • Set showings and show property
  • Respond to questions with factual information about the property
  • Refer buyer to professional (home inspectors, etc.) as necessary
  • Disclose observed defects in the property
  • Disclose all material defects pertaining to the physical condition of the property that are known by the licensee
  • Deliver property disclosures and obtain missing info on property disclosures to comply with MREC minimum disclosure laws
  • Provide the buyer with comparative market data (CMD)
  • Write an offer as a ministerial act without advice, including contingencies dictated by the buyer
  • Provide and review MREC offer/counter-offer guidelines
  • Present offers and counter-offers in a timely fashion
  • Monitor contract dates for compliance
  • Prepare buyer for closing with reminders
  • Account for all money and property received
  • Comply with all state and federal laws related to real estate brokerage activity
  • Review closing statements for accuracy.

Buyers and/or Sellers as defined by duties and or services needed.  A Consultant Agreement would specify the duties, services and fees and timelines for the client.

In real estate, agents have a fiduciary duty to their clients, which means that they must act in the best interests of their clients and not their own interests.

As a fiduciary, a real estate broker will be held under the law to owe certain specific duties to their principal, in addition to any duties or obligations set forth in a brokerage agreement. These specific fiduciary duties include Loyalty, Confidentiality, Disclosure, Obedience, Reasonable care and Diligence, Accounting.

An Appraisal is typically conducted by a licensed Appraiser and adheres to strict Appraisal standards in rendering an appraisal price.  An Opinion of Value is conducted by a Licensee for a client, with a fully executed Broker Price Opinion Agreement defining the client, location, scope of services, fees and timeline for services.  The Licensee will research your property information by a site visit property’s type and condition, the improvements’ size, features and age, the size of the land, and compare relevant market sales data for comparable sales (on the MLS and regional sales reporting via town websites) within a time and location criteria to define a property value. The final opinion of value report must include:

“This opinion or appraisal was prepared solely for the client, for the purpose and function stated in this report and is not intended for subsequent use. It was not prepared by a licensed or certified appraiser and may not comply with the appraisal standards of the uniform standards of professional practice.”

Your Knowles Broker will research your property information and conduct a site visit to assess the property’s type and condition, the improvements size, features and age, the size of the land, and compare relevant market sales data for comparable sales within a time and location criteria to define a market price. There are many factors that may influence price recommendations beyond the MLS such as market inventory and trends, condition of the property, zoning restrictions etc.

• The Multiple Listing Service is a primary database of real estate inventory available by cooperating Real Estate Agencies sharing properties for sale in all categories. Within each state, the MLS database features statewide (or multi-state) properties for sale and real time updates on property status. This information is also the primary source of digital feed of properties information into thousands of national and international marketing venues.
• The Knowles Company is a cooperating brokerage agency within Maine Listings for Maine and New Hampshire with more than 6500 real estate licensees, all their cooperating efforts to bring together buyers and sellers and assist in the real estate transaction process. Within Maine Listings, the Realtors Property Resource (RPS) tool allows cooperating Realtors to access property information in every state.

• The real estate market is both  competitive, and uniquely cooperative with each other to ensure a successful transaction. MLS systems facilitate that cooperation. The MLS is a tool to help listing brokers find cooperative brokers working with buyers to help sell their clients’ homes. MLSs are a powerful force for competition. They level the playing field so that the smallest brokerage in town can compete with the biggest multi-state firm.
• Buyers and sellers can work with the professional of their choice, confident that they have access to the largest pool of properties for sale in the marketplace. MLSs are private databases that are created, maintained and paid for by real estate professionals to help their clients buy and sell property.

Once an agent is selected and appointed, the listing agent will present Listing Agreements and Disclosures related to your property.  Listing Agreements will define the Seller information, property address, deed reference, price, commission, length of time for the Listing to be marketed, personal property included in the sale, and other details as determined by the Seller and Broker.  Disclosure details (Property Disclosure and Lead Paint Addendum) will be researched by the Listing Agent in partnership with the Seller, to ensure accurate historical data is presented.  The Listing and Disclosure information is the basis for the MLS data, which is required all listings marketed on the MLS.  Educating the Seller about the Agreements and Disclosure is one of the most important elements of the realtor relationships so that all parties understand and agree to the terms of the partnership.

The listing agent will review your property with you and make suggestions on how best to present, or “stage” the property for showings. A full portfolio of photographic images and video will be made on your property once the property is staged for marketing.

The golden rule for staging is “clean, crisp, tidy, and allow for a Buyer to see themselves and family with their possessions in the home.” Your Listing Agent may suggest reasonable updates or repairs if needed that will enhance the presentation of the property, and mitigate potential areas of concern from a Buyer in the offer process.

There are many tools that a Listing Agent will employ to introduce your property to the broader market of Realtors and their Buyer clients.  An Open House is an invitation to tour the property by the realtor community on a set day and time.  The Open House invitation is publicized to the vast Realtor community as well as to their Affiliates, for maximum exposure at the start of the property marketing.

The Knowles Company will market your property on the MLS and through The Knowles Company website. Each of these market venues feeds in hundreds of markets by our national and international partner outreach.  Digital marketing and print advertising across many market platforms are strategically determined by the property data and demographics of Buyers.  Each property will have a specific marketing plan based on proved sales success of properties in a timely manner.

All offers are presented to the Seller upon receipt by the Listing Agent. The offers will be reviewed in detail by the Seller and Listing Agent. Offers typically have a timeline for response.  The Listing Agent will share market data on recent sales that may guide the offer review and terms. There are many considerations to review in an offer situation, and these scenarios are only a few for examples.

Sellers may choose to:

• Accept the offer as presented
• Counteroffer terms
• Reject the offer

Collaborative Communications are the key to successful offers leading to a sale!

**Maine Real Estate Law -§13271-Definitions:

• Affiliated licensee. “Affiliated licensee” means a licensee who is authorized to engage in brokerage activity by and on behalf of a real estate brokerage agency.
• Appointed agent. “Appointed agent” means that affiliated licensee who is appointed by the designated broker of the affiliated licensee’s real estate brokerage agency to act solely for a client of that real estate brokerage agency to the exclusion of other affiliated licensees of that real estate brokerage agency.
• Brokerage agreement. “Brokerage agreement” means a contract that establishes the relationships between the parties and the brokerage services to be performed.
• Buyer agent. “Buyer agent” means a real estate brokerage agency that has entered into a written brokerage agreement with the buyer in a real estate transaction to represent the buyer as its client.
• “Client” means a person who has entered into a written brokerage agreement with a real estate brokerage agency that has agreed to represent that person and be bound by the duties set forth in section 13272 on behalf of that person.
• Designated broker. “Designated broker” means a broker designated by a real estate brokerage agency to act for the real estate brokerage agency in the conduct of real estate brokerage.
• Disclosed dual agent. “Disclosed dual agent” means a real estate brokerage agency representing 2 or more clients whose interests are adverse in the same transaction with the knowledge and informed consent of the clients.
• Material fact. “Material fact” means a fact that relates to the transaction and is so substantial and important as to influence the client to whom it is imparted.
• Ministerial acts. “Ministerial acts” means those acts that a real estate brokerage agency performs for a person who is not a client and that are informative or clerical in nature and do not rise to the level of active representation on behalf of the person.
• Real estate brokerage agency. “Real estate brokerage agency” means a person or entity providing real estate brokerage services through that person’s designated broker, affiliated licensees, associates or employees and licensed by the commission as a real estate brokerage agency.
• Seller agent. “Seller agent” means a real estate brokerage agency that has entered into a written brokerage agreement with the seller in a real estate transaction to represent the seller as the real estate brokerage agency’s client.