When you're ready to buy a home, one of the first steps is to find an agent who can guide you through the process. A critical part of this relationship is negotiating a written buyer agreement, which outlines the services your agent will provide and how they will be compensated. Here's what you need to know about this important aspect of working with a real estate professional.
When Should I Negotiate?
In many cases, you'll need to negotiate a written buyer agreement with an agent before you tour a home, whether it's an in-person or live virtual tour. This agreement sets clear expectations between you and your agent, including the agent’s responsibilities and compensation. However, if you’re simply visiting an open house or inquiring about services, no written agreement is necessary at that stage.
What Can Be Negotiated?
You have the ability to negotiate various terms in the agreement:
- The services your agent will provide.
- How much your agent will be compensated.
- The duration of your agreement.
- Any other terms that are important to you.
The goal is to reach a mutually beneficial agreement where you receive the value and services needed while your agent is fairly compensated for their work.
How is My Agent Compensated?
Agent compensation can vary, and there are different ways to structure it:
- A flat fee.
- A percentage of the purchase price.
- An hourly rate.
Remember that compensation is negotiable and not set by law. You can also request that the seller compensate your agent, which can be negotiated in the purchase agreement.
What Services Can I Expect?
Your agent can offer a wide range of services to assist you during the homebuying process, such as:
- Finding homes that meet your criteria.
- Accompanying you to showings.
- Providing property analysis.
- Negotiating on your behalf.
To understand more about the value agents bring, check out the "179 Ways Agents Who Are REALTORS® Are Worth Every Penny."
Starting the Conversation
It's important to interview a few agents to find the right fit. Start by asking about the services they provide, their compensation structure, and what you can expect from the process. REALTORS® are bound by a Code of Ethics to be transparent, so don't hesitate to ask for clarification.
What Happens If We Can’t Agree?
You are under no obligation to sign an agreement that you aren’t comfortable with. If negotiations don’t work out, either you or the agent can walk away at any point.
Can We Change the Agreement?
Yes! You and your agent can mutually agree to change the terms of the agreement later on. Just make sure to review the agreement carefully, as state laws or specific clauses in the agreement may dictate when changes or terminations can occur.
For more expert guidance on buying a home and negotiating buyer agreements, feel free to contact me at www.labradarealty.com, email me at albert@labradarealty.com, or call 786-290-3594.