Buyer's Agent/Buyer's Broker (Sarasota: real estate, HOA, insurance)

[dillflower]

What are the pros and cons of hiring a buyer's agent/buyer's broker to help me find just the right condo in Sarasota? As I understand it, that agent works for YOU instead of a real estate agent who works for the seller. Is this correct? Has anyone ever used one? What was your experience? And can you recommend one to me?

[SoFLGal]

Hi There,

I wrote a blog about representation that you might find interesting:

//www.city-data.com/blogs/blog1...presented.html

Let me know if you have more questions after reading this...

[Sunshine Rules]

Good explanation about agency representation, SoFlGal.

If you are considering hiring an exclusive buyer's agent, there are 2 questions to ask:
(1) does the agent have or take listings?
(2) does the broker's office the agent works for take listings/represent sellers?

If the answer is yes to either of those questions, then there could potentially be a conflict of interest if, for instance, you wish to see a condo listed by the agent or his office. In that case, the agent cannot be your "single agent" any longer - he/she would have to become either a "transaction broker" or do non representation of one of the 2 parties.

Most agents wear different caps at different times, acting as listing agents, transaction brokers or buyers' agents, depending on the situation. For example, we can be the listing agent of a home you visit during an open house. You call later and want to see some other property we mentioned to you that is not listed by the agent or agent's office. So, in that situation, the agent can become your buyer's agent.

If you are considering hiring an exclusive buyers agent, I suggest you interview several before settling on one. Go out and look at some homes with them to see how well you work together. Ask for references from recent customers of the agent, then check those references out. Find out how many other buyers the agent is currently working with. Most exclusive buyer's agents will want you to sign some sort of exclusive contract, stating if you purchase a property during the agreement's time period, that agent gets a commission. If I were you, I would try to keep that contract time period as short as you can negotiate, so that you are not locked into 6 months or more with an agent you may decide does not provide the kind of service and attention you desire. Remember, other agents will not want to show you properties while you are locked into an exclusive buyer's agent contract.

Good luck with your home search, dillflower.

[Big House]

Originally Posted by Sunshine Rules

Good explanation about agency representation, SoFlGal.

If you are considering hiring an exclusive buyer's agent, there are 2 questions to ask:
(1) does the agent have or take listings?
(2) does the broker's office the agent works for take listings/represent sellers?

If the answer is yes to either of those questions, then there could potentially be a conflict of interest if, for instance, you wish to see a condo listed by the agent or his office. In that case, the agent cannot be your "single agent" any longer - he/she would have to become either a "transaction broker" or do non representation of one of the 2 parties.

Most agents wear different caps at different times, acting as listing agents, transaction brokers or buyers' agents, depending on the situation. For example, we can be the listing agent of a home you visit during an open house. You call later and want to see some other property we mentioned to you that is not listed by the agent or agent's office. So, in that situation, the agent can become your buyer's agent.

If you are considering hiring an exclusive buyers agent, I suggest you interview several before settling on one. Go out and look at some homes with them to see how well you work together. Ask for references from recent customers of the agent, then check those references out. Find out how many other buyers the agent is currently working with. Most exclusive buyer's agents will want you to sign some sort of exclusive contract, stating if you purchase a property during the agreement's time period, that agent gets a commission. If I were you, I would try to keep that contract time period as short as you can negotiate, so that you are not locked into 6 months or more with an agent you may decide does not provide the kind of service and attention you desire. Remember, other agents will not want to show you properties while you are locked into an exclusive buyer's agent contract.

Good luck with your home search, dillflower.

I wouldn't sign a buyer's agent agreement. When that happens, they just don't work as hard for you. They have you locked in, and the commission pretty much guaranteed at that time. The commissions are what motivates them and keeps them working, AND you want to keep them working hard for you or you want to go and find someone else. If you find a home on your own, by searching through the MLS's available on tons of sites for free - you still will have to pay the buyers agent. Having an agent help you is a good thing - but you don't need to be exclusive to get great service. The sellers right now are very motivated to sell, you don't get much from a buyers agent that you cant get and learn right here or by asking around. JMHO.

[bbronston]

I'll throw one more thing in that you don't hear very often. There's more liability for both the agent AND the buyer when the buyer uses a single agent vs. a transaction agent. That means that the agent has a high level of fiduciary responsibility to the buyer but the buyer can be more easily held responsible for the actions of the agent since the buyer is the agent's employer.

When I first started, I thought single agent was the only way to go because it fit with my mental image of what an agent should be. After a year or so of practical experience, I could see that transaction agency (for residential real estate) worked best and provided the best opportunity for both sides to achieve their goal--a closing! In Florida, all agents are presumed to be transaction agents unless otherwise stated.

[SoFLGal]

Originally Posted by bbronston

I'll throw one more thing in that you don't hear very often. There's more liability for both the agent AND the buyer when the buyer uses a single agent vs. a transaction agent. That means that the agent has a high level of fiduciary responsibility to the buyer but the buyer can be more easily held responsible for the actions of the agent since the buyer is the agent's employer.

When I first started, I thought single agent was the only way to go because it fit with my mental image of what an agent should be. After a year or so of practical experience, I could see that transaction agency (for residential real estate) worked best and provided the best opportunity for both sides to achieve their goal--a closing! In Florida, all agents are presumed to be transaction agents unless otherwise stated.

Everyone here has made some pretty good arguments...

BB, this is a decent point, and to that end, many companies will only allow their agents to act as a transaction broker for that reason.

Also, when I renew my insurance for my company they ask what is the "usual" way my agents represent.

[dillflower]

Thank you all for your informed posts --ad SoFLGal's blog post clarified a lot for me. I guess I'm still yearning for a single agent who represents me and only me, who listens and who divulges all, but there's no reason why a transaction agent can't be that person. Again, if you know of such a principled agent, please message me. I'm going to start looking next June (a year from now) presuming my Boston condo will be sold by then. And I won't be window shopping, either. I really want to move to Sarasota for good.

[Big House]

Originally Posted by Big House

I wouldn't sign a buyer's agent agreement. When that happens, they just don't work as hard for you. They have you locked in, and the commission pretty much guaranteed at that time. The commissions are what motivates them and keeps them working, AND you want to keep them working hard for you or you want to go and find someone else. If you find a home on your own, by searching through the MLS's available on tons of sites for free - you still will have to pay the buyers agent. Having an agent help you is a good thing - but you don't need to be exclusive to get great service. The sellers right now are very motivated to sell, you don't get much from a buyers agent that you cant get and learn right here or by asking around. JMHO.

Sunshine, are you strickly an exclusive buyers agent, or a transaction agent, or do
you flip flop back and forth as every other real estate agent does?
You keep hinting like you are a exclusive buyers agent.
Don't you list houses - so you cannot be "a buyers agent". . .
So, if you are not "an exclusive buyer's agent" you do not fully and completely represent the buyer's interest as you seem to alway imply. Is that a correct statement?

[Big House]

Originally Posted by Big House

Sunshine, are you strickly an exclusive buyers agent, or a transaction agent, or do
you flip flop back and forth as every other real estate agent does?
You keep hinting like you are a exclusive buyers agent.
Don't you list houses - so you cannot be "a buyers agent". . .
So, if you are not "an exclusive buyer's agent" you do not fully and completely represent the buyer's interest as you seem to alway imply. Is that a correct statement?

Sunshine - I'm still askin' . . .

[justNancy]

In a buyer's market, I think it is foolish to hire a buyer's agent. An agent is either going to be ethical or not when representing you during a real estate transaction.

If you are out-of-state, you might need someone to shop around for you, but I'd still do my own extensive research before making any purchase.

I'm just not sure what a buyer's agent or listing agent can do that is different. I don't want to be nosy, so I won't ask what your price range is, but if you're not spending a lot of money, at 3% commission, don't think any salesperson is going to spend every waking hour working for you. If that were the case, all real estate agents would starve since a high percentage of people shop for months/years and don't end up buying. As I said, if a real estate agent is experienced, honest and willing to do his/her job, I don't think it matters. In any case, always hire an inspector and use the services of a real estate attorney. If you are buying a condo, carefully read the HOA rules and make sure you understand the fees.