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The seller pays your buyer agent (BA) a commission at closing so technically you are not paying a fee. However, this is built into price, so indirectly you are paying.
Typically your BA agent will be paid around 3% of the sale. In most states, it is legal to negotiate a rebate from your BA. If you buy the first house that you look at and your agent doesnt spend weeks showing you houses, I think you are in a good position to ask for a rebate. I have had rebates up to 2% back.
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I can deal with couple of agent's same time as long as the number is in 2-3.
Yes, you can look at houses with different agents and DO NOT have to commit to one agent. It is like test driving cars, you need to spend some time w/ each agent to get a feel who you are most comfortable with. Although this does not always mean they are the most knowledgable, ethical or the saviest negotiator.
It is important to note that the agent will not become your "buyer agent" until you sign a form indicating so. Be careful of exclusivity contracts that commit you to a BA for a specific period of time. After you sign you can only buy a house with that agent and will not be able to negotiate a rebate on commission. For example, if you find a for sale by owner and the seller will not pay the BA commission, if you want the house, you would have to pay your BA out of pocket.
I would recommend signing exclusivity contract on a property by property basis. If an agent brings you a house that you want to offer on, negotiate the rebate for that house with the agent and then sign the BA contract (just for that house) just prior to writing up ( and signing) your offer to purchase.
If things fall through, you can continue to look with that agent (uncommitted) or move onto another agent. Often you dont know your agents true colors or abilities until you place an offer on a house and negotiate it with your BA.
It is important to note that the agent will not become your "buyer agent" until you sign a form indicating so.
Not even close to true, at least not in Florida. I'm happy to be "most" buyers agent with nothing more than a promise. Do I sometimes get shafted? Sure, but the snakes often reveal themselves in their first few words so I don't get bitten too often anymore. Do I provide all my buyers with info and service they couldn't get without me? Every single time. I often know more about a property and the seller than the listing agent.
Not even close to true, at least not in Florida. I'm happy to be "most" buyers agent with nothing more than a promise. Do I sometimes get shafted? Sure, but the snakes often reveal themselves in their first few words so I don't get bitten too often anymore. Do I provide all my buyers with info and service they couldn't get without me? Every single time. I often know more about a property and the seller than the listing agent.
So in FL when an agent meets a buyer, it is assumed that there is a BA agreement unless specified otherwise? Do you tell the buyers that you are acting as their BA without any signed agreement? Do you have them sign an agency agreement before putting in an offer?
In Florida there are three types of representation relationships I can have with a buyer or seller. I can be their single agent (advocating only for them), a transaction broker (advocating for neither side) or have a "no brokerage" relationship with them (no representation). We are assumed by law in Florida to be transaction brokers unless a "single agent" or "no brokerage relationship" agreement is signed. Even if a buyer signs a "single agent" agreement with me it does not bind them to me. The brokerage relationship has nothing to do with exclusivity. I'd rather bind a client to me through my performance rather than a signed "you must work with only me" piece of paper. I used to use binding buyer's agreements. Plenty of agents still do but over time I've come to prefer the handshake/verbal agreement.
So in FL when an agent meets a buyer, it is assumed that there is a BA agreement unless specified otherwise? Do you tell the buyers that you are acting as their BA without any signed agreement? Do you have them sign an agency agreement before putting in an offer?
Florida isn't a different beast, they don't have traditional buyer agency.
In Florida there are three types of representation relationships I can have with a buyer or seller. I can be their single agent (advocating only for them), a transaction broker (advocating for neither side) or have a "no brokerage" relationship with them (no representation). We are assumed by law in Florida to be transaction brokers unless a "single agent" or "no brokerage relationship" agreement is signed. Even if a buyer signs a "single agent" agreement with me it does not bind them to me. The brokerage relationship has nothing to do with exclusivity. I'd rather bind a client to me through my performance rather than a signed "you must work with only me" piece of paper. I used to use binding buyer's agreements. Plenty of agents still do but over time I've come to prefer the handshake/verbal agreement.
So at the end of the day, if there is nothing signed your relationship (legal agency) with the buyer is neutral. As long as the buyers realize this I think that is ok. However, if you tell them that you are acting on their behalf but there is no legal agency, things can get a little dicey (for your buyers). For you this could be an out.
Seem like there is no downside for your buyers to sign a BA (single agent) with you, since is it is not exclusive. It would formally obligate you to look out for their best interests (not that you dont already).
Do you do other parts of the RE transaction verbally and/or with a handshake?
How could it ever be a plus to not get someone's best effort?
My point was that, in FL if you sign a BA (single agent) agreement, the agent will theoretically look out for your best interest. Buyers are sometimes hesitant to sign BA agreements due to exclusivity, however in FL this doesn't seem to be an issue.
Are you implying the BAs in FL put forth a suboptimal "effort" due to lack of exclusivity?
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