For decades, the real estate industry has operated with an easy-to-understand contractual structure under which agents for sellers, agents for buyers and the broker agency all divvy up the standard compensation.
Not any more. Quite soon, buyers in particular will have the option of enlisting an agent to represent their interests, while also evaluating the agent’s compensation for said efforts.
Kind of like a whole new Wild West, from small towns to the suburbs to urban life.
If you’re looking to buy a home and these changes are causing you stress, angst or a plain headache, don’t let ’em. Because while you can choose to go it alone, or choose to try to squeeze your potential representative, Zillow reports that 88% of all buyers employ an agent to negotiate and represent them — and find outstanding value in the process, from having someone do all the work to locate their perfect dream home, as well as obtaining for them the very best price and deal.
In reality, how will it work? Zillow reports that 88% of all buyers now employ an agent to negotiate and represent them, find their dream and find outstanding value in the process. Here’s what the National Association of Realtors has to say and why you should hire me, Milissa Sprecher, to help you find the Sanibel Island, Captiva Island, Fort Myers or other Southwest Florida beach home of your dreams at the best value.
If you’ve started looking for a home—and a real estate professional to assist you—your buyer’s representative may ask you to sign a Buyer Representation Agreement. What is this form? Why should you sign it?
A Buyer Representation Agreement is a legal document that formalizes your working relationship with a particular buyer’s representative, detailing what services you are entitled to and what your buyer’s rep expects from you in return. While the language used in the document is formal, homebuyers should view it as an important and helpful tool for clarifying expectations, developing mutual loyalty, and most importantly, elevating the services you will receive.
- Receive a higher level of service. If you’ve formalized an agency relationship with a buyer’s rep, you can expect to be treated like a client instead of a customer. What’s the difference? Clients are entitled to superior services, relative to customers. While the details vary from state to state, and from one buyer’s agent to another, you can generally assume that being a client means that you’ve formed a fiduciary, or agency, relationship with your buyer’s rep.
- Get more without paying more. Oftentimes the listing broker has already agreed to pay a buyer’s broker’s compensation. If they haven’t, you can ask your buyer’s rep to avoid showing you any such homes. Or you can still view the home, knowing that you’ll need to factor your broker’s commission into any offer you may write.
- Avoid misunderstandings. A Buyer’s Representation Agreement clarifies expectations, helping you understand what you should and shouldn’t expect from your buyer’s rep, and what they will expect from you, which usually centers on loyalty.
- Agency relationships are based on mutual consent. While most representation agreements specify a time period, they can be terminated early if both parties consent. Most buyer’s reps are willing to end the agreement early if the working relationship isn’t going well. Some buyer’s reps also offer representation agreements for as little as one day, for the purpose of giving both parties a brief trial period to explore working together.
- Strength as a team. When you and your buyer’s rep work together within a formalized agency relationship, you have created a team dedicated to helping you achieve the best possible home-buying experience.
Milissa Sprecher is a top Sanibel Island, Captiva Island, Fort Myers, Cape Coral, Bonita Springs, Estero, Fort Myers Beach and Lee County realtor. Affiliated with the renowned McCallion & McCallion Real Estate, Milissa is a 20-year resident of Sanibel Island, a highly accomplished and nationally awarded photographer in advertising and media (including New York Times and Today Show), and has been featured with her family on 60 Minutes following the devastation of Ian and recovery of Southwest Florida’s communities. Why partner with the rest when you can partner with the best? Contact Milissa today here.