First time homebuyers may wonder if they really need a real estate buyer’s agent or not. You can buy a home without one, but you might not want to. An agent can make the process a lot easier in multiple ways. Below, we go over some of the benefits of working with an agent. We will also go over some additional things that are useful to know about how agent services are structured and what you can expect from the contract terms.
- Find an ideal home more quickly. For starters, a buyer’s agent can help you find your dream home much more rapidly. They have an eye on homes for sale in the neighborhood, and may even know of some that are not publicly listed yet. They also can help you find specific types of homes or features. Some even have unique specializations and knowledge.
- Locate and coordinate with other professionals. You are going to need to work with some other professionals during your home purchase, such as home inspectors. An agent can connect you with these services, saving you time. They can also work with them on your behalf if you want. You then have more energy to spend on the rest of the home purchase process.
- Get help with the negotiating process. Buyer agents have successfully negotiated for numerous homebuyers. You may have only negotiated a few times yourself, or never negotiated at all. It makes sense to have someone in your corner negotiating effectively and professionally for your best interests.
- Understand the contract. You probably will have some questions about the contract. You may also not be entirely sure what potential pitfalls to watch out for in the terms. Your agent can review the contract with you thoroughly, and catch any issues. They can also answer your questions so by the time you are ready to sign, you are comfortable proceeding.
- Navigate closing with ease. Another way your agent can help you is by guiding you through closing. Even though closing is not a long process, it can be a complex one. Your agent can make sure that it goes smoothly. They can also answer your questions so you know what to expect in advance.
Dual Agent vs. Buyer’s Agent
You will discover there are two types of agents that buyers can use in some states: dual agents and buyer’s agents. In Florida, however, dual agents are prohibited. But this is actually not a bad thing for homebuyers.
A dual agent is a neutral agent who represents both the buyer and the seller in a real estate transaction.
A buyer’s agent, on the other hand, is an agent who only represents you. The seller brings their own agent to represent them.
You can see how having your own agent separate from the seller would give you better representation. It prevents conflicts of interest, and allows your agent to put your best interests first, rather than remaining neutral. So, you should not look at FL’s law as overly restrictive.
Real Estate Agent Contract Terms to Read Carefully Before Signing
When you find a real estate agent you are interested in working with, they will present you with a contract. You will need to review the terms of the contract before you sign it. Here are some things you should pay close attention to.
- Pricing: You will, of course, probably want to start by checking what the service will cost you. But don’t just look for a number. Check how the fees are calculated and what services they cover. In particular, see if it is a flat rate or a commission-based rate. You do not need to work with the cheapest agent, but make sure they do not exceed your budget.
- Length of contract: Check how many months the contract with the real estate agent will last.
- Geography: The contract may designate a particular geographical area that the agent will work with you in. Outside of that area, you may be on your own or need a different agent.
- Exclusivity: One catch that is in some contracts is an exclusivity requirement. Under that requirement, you are only allowed to work with the real estate agent whom you signed the contract with during the contract term. After the term expires or you cancel, you can work with other agents. That is why you need to be extra mindful of the length of the contract in some situations.
- How to cancel: It is important to find out how you are allowed to exit the contract. Are you able to leave early under certain conditions, or do you need to wait until the contract term is up or you have finished purchasing a house?
If you are satisfied with the terms of the contract, you can sign. If you are not, contact the agent and see if they are willing to negotiate some of the contract terms. If they are not, you can look for another agent. In fact, it is a good idea to contact at least several agents in your area before you choose the one you are going to work with.
Buy a Home or Refinance in Florida
Along with a real estate buyer’s agent, you will need a mortgage company. We are based in Cooper City, and can help you buy your first or next home anywhere in Florida. As a mortgage broker, we can connect you with a variety of loan products and competitive rates. To get started, please give us a call at 954-840-8811 to schedule your consultation.
