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Tuesday, April 18, 2017

Why You Need Your Own Real Estate Agent When Buying a House in Florida

Here is what I call a lucky break when shopping for a home in Florida...."I called the listing agent.... but they did not call back."

Why were the prospective home buyers lucky?   Because the listing agent (person with sign out front) works for the seller.  In the case of a builder/new development, the person staffing the model home represents the builder/developer.

In Florida there is no such thing as dual representation.

A real estate agent can not represent both parties to a transaction.  However, in Florida an agent can "represent the transaction" without giving undivided loyalty to either side.  Still, who does not want their side represented by their own agent?

When representing the transaction in Florida agents are considered transaction brokers.
Per Florida Statutes a transaction broker "provides a limited form of representation to a buyer, a seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. The duties of the real estate licensee in this limited form of representation include the following:
(a) Dealing honestly and fairly;
(b) Accounting for all funds;
(c) Using skill, care, and diligence in the transaction;
(d) Disclosing all known facts that materially affect the value of residential real property and are not readily observable to the buyer;
(e) Presenting all offers and counteroffers in a timely manner, unless a party has previously directed the licensee otherwise in writing;
Limited confidentiality, unless waived in writing by a party. This limited confidentiality will prevent disclosure that the seller will accept a price less than the asking or listed price, that the buyer will pay a price greater than the price submitted in a written offer, of the motivation of any party for selling or buying property, that a seller or buyer will agree to financing terms other than those offered, or of any other information requested by a party to remain confidential; and
(g) Any additional duties that are mutually agreed to with a party."

The above is copied directly from the link.  I am not a lawyer.

The highest level of representation in Florida is called single agency, the lowest level, no brokerage relationship (basically be honest, fair, disclose facts and account for all funds entrusted).

So, at a minimum, a buyer should have their own real estate agent who either represents them as a single agent or transaction agent.

With either of these arrangements the buyer has an advocate for them and not just an advocate for the transaction.  Or even less, no representation whatsoever.

Besides, the buyer's real estate agent is paid by the seller whether a resale or new construction.

I don't believe you can fully support one side if you are committed to the other side as well.

Ready to buy a home in Melbourne, Florida?  Call or text me at 321-693-3850 for more information, ask a question or to let me be your Florida Realtor.

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