Buying Real Estate in Central Connecticut . . Understanding the Buyer Agreement
If you are going to be buying real estate in Central Connecticut, it will be necessary to address and sign a buyer agreement with your Realtor. This should not be looked at as a hook to capture you and limit your abilities to purchase a home.
The buyer agreement is a two way commitment between the agent and the buyers. If ensures that the buyers' loyalty will be to the agent that is helping them in their search. The agent has made a pledge to get the client the best home possible, within their means, at a competitive price.
Within the Buyer Agreement, are mentioned the fee arrangements. A Buyer's agent may receive a flat fee, or a share of the commissions, or both. Under normal circumstances a buyer pays no commissions for the transaction. Commissions are negotiated between the sellers and their agents. The exceptions would be an arrangement for professional services, or flat fee, to be done by the buyer's agent for the buyer that would be beyond the scope of a normal real estate transaction.
Many times this flat fee arrangement will compensate the agent for opportunity lost in serving another client should the original buyer not purchase a home.
If the agency commission policy is higher than the normal percentage split as allowed in the MLS, the agent may add a contingency to the buyer agreement committing the buyer to pay the difference. This could be anywhere from a 1/2 percentage point of the sales price to as much as 2 percent.
The buyers should be careful in thoroughly understanding this agreement so that there are no surprises at the time of closing.
The time term for the Buyer agreement should be adequate to cover the search for a home and the mortgage and inspection process, which should be anywhere from 4-6 months. It is possible to execute a shorter term, but not advisable when all of the requirements of a purchase are considered.
As with any contract executed in a home purchase, all people involved must sign and date the agreement, and it is not considered legal unless both parties have a copy for themselves.
It is important that any documents that are presented to a client in real estate be read thoroughly. If there are areas that are not clearly understood, have them explained. Failure to understand a document is not a reason to negate a sale.
If you are a buyer looking to purchase real estate in Central Connecticut,I can help you with the process from start to finish and make it a smooth transaction as well.
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