Did you know that most real estate agents don't actually represent you? However, we do.
Single Agency Vs. Transaction Brokerage. What in the world is the difference?
In the state of Florida, when you first meet a real estate agent, they are assumed to be a transaction broker. They only become a single agent if they have you sign a form stating the higher level of representation. However, MOST brokerages do not offer single agency. Why? Because single agency creates a higher level of exposure for the brokerage aka high insurance premiums. However, without it, an agent is essentially working for you and the other party. Would you hire an attorney to defend you who also is on the side prosecuting you? Yeah, we wouldn't either. A transaction broker must stay neutral. They do not work for either party and can not work to the detriment of either side. Essentially, they can't even negotiate. They represent the transaction and have to stay 100% fair to both sides. They may know one side is willing to pay more, but can not tell you, even if you are their client. That doesn't seem right does it?
* please note that we can't ALWAYS offer single agency. If we ( our agent or brokerage) is representing both the buyer and seller we must operate as transaction brokers.
Single Agency Provides You As The Client With 4 Core Things:
When in a single agency relationship, we work solely for you. We can work to the detriment of the other side and our only job is to get you the best deal possible.
Whatever you tell us to do, we have to do it. We work 100% for you and must follow your wishes regardless of how it may affect the other party.
Whatever you tell us is 100% confidential. We can not say a single thing to the other side. No matter what, it stays with us through the entire transaction.
Whatever we learn we get to tell you. If we find out that the sellers are in a bad situation and need to move asap and are desperate. We can use that as leverage.
Here's A Case Study On The Power Of Single Agency:
How will you represent me? This is the #1 question you need to ask any prospective agent.
When you are interviewing agents to handle the sale of your home, or to help you purchase a new one, make sure you ask them how they will represent you.
This is a higher level of representation. With this comes 4 things. Loyalty, Obedience, Confidentiality and Full disclosure. Essentially this means we have your back and are fighting only for you. We can work to the detriment of the other side. Something a Transaction Broker CAN'T LEGALLY DO. Let's use an example. Let's say you select a transaction broker to buy a home with. You fall in love with a home. Your agent finds out by talking with the other seller's agent that they have it listed at $300k but need it gone asap and would be happy with $250k. Your agent can't legally tell you that as a Transaction Broker. That's not right is it? As a single agent, not only can we tell you, WE HAVE TO TELL YOU. Once again, representation matters.
In the state of Florida, any real estate agent you meet is considered at first contact, to be a Transaction Broker. If they offer Single Agency, they will have you sign a specific form to give them that ability. MOST brokerages do not offer single agency. Mainly because it creates more exposure for the brokerage and therefore results in higher insurance premiums. However, we believe its the right way to represent a client. Otherwise, you represent the transaction and must play fair for both sides. We are in business to help people not a contract. Always ask any prospective agent how they will be representing you.