Can I use a real estate agent to buy a new house?
Yes, but buyers should be aware of the distinctions when working with developer-employed sales agents as opposed to conventional real estate agents.
Before the topic of commission money is ever brought up, builders frequently demand that an outside agent be there and sign in the first time a potential buyer visits a site. Even if an agent
proves to be useful later on in the process, builders may refuse to pay any commission if purchasers utilize an advertisement to find the development themselves initially. If you plan to use a real
estate agent, it is best to phone the development first and find out what their compensation policy is.
How do I find a real estate agent?
Finding a good agent is made much easier by getting recommendations from friends or coworkers. Make sure to find out if they plan to hire the agent again. You can also give the managers of
respectable real estate companies a call and ask them for referrals to agents who have previously served your neighborhood. You should always interview at least three agents to give yourself a
choice, whether you are a buyer or a seller. A excellent agent often has years of experience and works full-time. When speaking with a potential realtor, you should anticipate seeing a comparative
market analysis, which contains recent house sale prices in your neighborhood.
What about a buyer's agent?
In many states, it's now typical for an agent to only represent the purchasers in the transaction and get payment from the sellers in the form of a commission. A growing number of purchasers
are taking things a step further by employing and paying their own representative, sometimes known as a purchaser's broker.
What's the best way to find a good agent?
Whether you are a buyer or a seller, getting a referral from a friend or coworker is a great method to discover a good agent. Make sure to find out if they plan to hire the agent again. You can
also give the managers of respectable real estate companies a call and ask them for referrals to agents who have previously served your neighborhood.
A excellent agent normally has at least a few years of experience and works full-time. Typically, you don't pay your agent's fees if you're a buyer (in the form of a commission, or percentage of
the sales price of the home). Typically, the seller pays all agents involved in a transaction out of the sales revenue. This implies that your agent is legally functioning as the seller's subagent
in several states. However, it is allowed in some areas for an agent to exclusively represent the buyers in the transaction and receive payment from the sellers in the form of a commission. Additionally,
you have the option to employ and pay your own agent—a buyer's broker—whose only legal duty is to you. If you are a seller, you ought to speak with at least three brokers, each of whom ought to provide
a sales pitch that includes a comparison of the local housing market in your area. The realtor who has the highest asking price for your house isn't always the greatest option. Make sure to consider the
agent's entire marketing strategy as well as how well you think you will get along with them.
How much information is required for my real estate agent?
According to real estate professionals, the more information you provide, the stronger your position will be in any negotiations. Your level of trust in an agent, however, could be influenced by their
legal responsibility. Agents who work for purchasers can choose between three options: they can represent the buyer solely (known as single agency), the seller solely (known as sub-agency), or both the
buyer and the seller (known as dual agency). Before engaging in a residential real estate transaction, some states require agents to disclose all potential agency ties. The three fundamental types are
listed below:
- Real estate brokers and agents traditionally have a fiduciary obligation to the seller. Be aware that the seller pays the commissions of both brokers—not just the one who lists and advertises the
property, but also the sub-broker who locates the buyer who is qualified, ready, and able—instead of just the one who lists and advertises the property.
- If two agents working for the same broker represent both the buyer and the seller in a transaction, dual agency is present. If the listing agent is aware of another buyer's bid in advance, there
may be a conflict of interest. Since the seller will take less than the list price, the law provides that a dual agent may not, without the seller's express written consent, inform the buyer that the
seller will accept less than the list price or inform the seller that the buyer will pay more than the offer price.
- Additionally, a buyer has the option of working with their own agent, who will only represent their interests. In most cases, a buyer's agent must be paid for out of pocket by the buyer, but the
buyer can confide in them with financial details knowing it won't be shared with the other broker and eventually the seller.
Where can I find out more about buyer agents?
Contact your local Realtor association or the National Association of Exclusive Buyers Agents at 320 West Sabal Palm Place, Suite 150, Longwood, FL 32779 for more information on buyer agents.
Phone: (407) 767-7700, Toll-Free: (800) 986-2322, FAX: (407) 834-4747, and WEBSITE: (www.naeba.org).