True Buyer Representatives Orlando FL are badly needed by all Florida home buyers. Florida is a “caveat emptor” state which serves as a “buyer beware” warning that the buyer needs to “be aware” of all their real estate nuances. There are about 300,000 licensed real estate agents in the state, yet less than 50 represent home buyers without a conflict of interest.
Today, you have found someone you can count on, to represent ONLY your best interest without double talk. We are true Buyer Brokers (also called Exclusive Buyer Agents) who exclusively represent only home buyers. Call Buyers Broker of Florida for a no pressure chat to answer your hardest questions: 407-539-1053.
3 Facts about Florida representation that home buyers don’t know
Florida is the only state that does not have mandatory disclosures. Realtors don’t even have to tell you that they don’t work for you. At one time, agents had to tell buyers who they really represented...but too many brokerages complained, so the Florida Real Estate Commission removed that Broker requirement.
99.9% of Florida Realtors work as “Transaction Brokers” with absolutely no fiduciary duties to you the home buyer. No loyalty, no full confidentiality, no full disclosure....they simply facilitate the transaction...sometimes for both buyer and seller at the same deal. They cannot give advice, or advocate for you.
Florida Agency Laws protect the Broker’s $ commission $, not you, the consumer. Florida’s broker responsibilities have been diluted and in many cases true buyer representation is either non-existent or simply a watered down version due to the potential for conflict of interest.
Do Florida home buyers want representation?
Absolutely! Most home buyers want to be fully represented but are not sure how to find a true buyer broker or even who to trust. Blame the “buyer rep” confusion on the current convoluted laws in Florida. By removing mandatory agency disclosures, now brokers do not have to be honest with the consumer. Brokers no longer have to tell you who their allegiance is to. That is important. At one time, Florida laws did require mandatory disclosures that protected the home buyer, but not anymore…
Here’s the untold story about Florida agency laws…
Up until the 1990’s all agents represented the seller. Even agents that were working with the buyers were legally required to get the highest price and most favorable terms for the seller. Home buyers had absolutely no one looking out for them.
As a few brokers started representing the home buyer, Florida responded by creating “dual agents” to represent both the buyer and seller in the same transaction. That way, some brokers were still able to keep making that double commission. However, brokers had to disclose their status as a “dual agent,” which sounded too close to the words “double agent”. Those words were easy for home buyers to understand and they rejected “dual agency”. So again, Florida changed the rules to accommodate the brokers. They re-named “dual agents” to “transaction brokers” a nicer title, with even less broker responsibility to the consumer.
So today, all brokers are presumed to be “transaction brokers”, unless there is a written agreement for single agency representation. On a positive note, there are some dedicated brokers in central Florida that do practice Exclusive Buyer Representation, as a true fiduciary.
What is a fiduciary?
A fiduciary is a person who has a legal or ethical relationship of trust with another party. The duty of a fiduciary is to promote only the best interest of the person(s) who they have established that relationship with.
A fiduciary has greater knowledge and expertise about the matters being handled. Therefore, they are held to the highest standard of conduct and trust above that of a casual business relationship.
The fiduciary must avoid all “conflicts of interest” particularly when the potential benefit to them conflicts with what is best for the person they are supposed to representing. For example: A broker who is a fiduciary cannot recommend or advise the client to use certain services without disclosing the financial benefit or other perks that the broker might receive. Many listing offices have “affiliate” controlled business relationships with lenders, title companies, inspectors and insurance companies.
Who can have a fiduciary relationship in real estate?
Single Agent: a fiduciary relationship is established in writing only with whomever the agent is representing; either the Buyer or the Seller, but not both. Transaction Brokers offer no fiduciary relationships.
A Buyer can have a fiduciary relationship only with a Buyer’s Broker or Buyers Agent.
A Seller can have a fiduciary relationship only with the Seller’s Broker or Sellers Agent. (also called listing agent)
A fiduciary relationship in Florida must be a written agreement that spells out the duties, requirements and expectations of both parties.
Fiduciary duties in Florida representation
Fiduciary duties in Real Estate are: Loyalty, Confidentiality, Full Disclosure and Skill, Care and Obedience. The problem for home buyers is that very few brokers in Florida offer fiduciary duties. Only a seller’s agent or a buyer’s agent can offer a fiduciary relationship...and most of the time it is a “hit or miss”. In other words, they only offer it limitedly, depending on the property they are showing.
Unless you are working with an Exclusive Buyer Agent whose office never represents sellers and represents only home buyers 100% of the time, you the homebuyer, are probably not being fully represented at all.
Now that you know about your best choice for the highest level of representation in Orlando Real Estate, let’s take a look at what other Florida relationships you may encounter.
Here is a close-up look into all Broker Relationships in Florida:
Sellers broker/agent AKA the Listing Agent: Represents only the seller with full fiduciary duties and total loyalty to the seller. They are seller advocates. They may transition into a transaction broker, in order to assist both the buyer and seller in the same transaction. Please note that “assist” only means that they “facilitate” the transaction with no advice, no loyalty and do not advocate for either party.
Duties of a Seller’s agent: to get the highest price and most favorable terms ONLY FOR THE SELLER. A seller’s agent may be extra nice while acting like your best friend, but the law says differently. Their job is to make you fall in love with their listing. Their legal obligation is to protect the seller. Their moral and ethical obligation is also only for the seller. A seller’s agent will not tell you that the property is overpriced, or that there are train tracks a block away or that the house needs a new roof. Their obligation is only to the seller and they cannot tell you negative information about the property or the sellers motives.
Sellers agents are however legally obligated to tell the seller everything about you. How much money you have, how much you love the house and how much you are willing to pay…
Remember: There is no requirement in Florida for a broker to tell you who they are really working for. Chances are that you won’t understand how the game is played until you have a problem...which is too late. The listing agent typically represents the seller as a sellers agent and that is who has the “for sale” sign in the yard. Don’t call on a sign in the yard!
Studies have shown that home buyers that use the listing agent will not get the most favorable price or terms. Which is why smart home buyers will always find a buyers agent before they start looking at homes.
Biggest home buyer misconception: Some home buyers think that working only through the listing office (sellers agent) will automatically lower the commission and the purchase price to the buyers benefit. Absolutely not true. A home buyer will never benefit...only the listing agent will benefit by keeping both the listing commission and the selling commision...in their own pocket, not yours.
Transaction Broker
All brokers in Florida are presumed to be a “Transaction Brokers”, unless there is a single agency relationship established in writing. About 99.9% of Florida Brokers practice as “Transaction Brokers” as they “facilitate” the transaction with no fiduciary duties. No loyalty; no total confidentiality, no full disclosure. While the broker is legally allowed to call that “limited representation”, it is not true representation as common sense would dictate...not at all what you would think. The licensee can use the words “limited representation”, yet no part of that is really any “representation” at all. Read on:
Florida statute 475 “Transaction Broker” definition states: “Limited” representation means that a buyer or seller is not responsible for the acts of the licensee. In addition, parties are giving up their rights to undivided loyalty of the licensee. This aspect of limited representation allows a licensee to “facilitate” the transaction by “assisting” both the buyer and seller.”
Duties of a Transaction Broker: To be a middle person...a facilitator, to put the deal together. They cannot advocate or be on anyone’s side. It is simply a fact that sellers and buyers do have opposing interests and are best served by having their own agent.
Remember: The seller always wants the highest price for their property. They also do not want to fix anything or reduce the price for a short appraisal. You, the home buyer, want to pay the lowest price and not be burdened with property deficiencies. For certain, you do not want to pay out of pocket for a short appraisal. It is impossible for a transaction broker to “help” you, which is why every home buyer needs to have their own buyer agent.
Buyer Agent in a traditional listing office...
They may act as your buyer agent if the situation fits. If they are showing you homes not listed with their office, they can probably represent you as a buyer agent. However, if their office agency policy is a “Transaction Brokerage” they must adhere to their office policy and remain as a transaction broker. If the property is listed with their office, they cannot represent you as a buyer agent, as that would be a conflict of interest.
Duties of a Buyer Agent in a traditional listing office: The duties will vary depending upon what the relationship is in the transaction. They may sometimes represent buyers, sometimes sellers, sometimes act as a transaction broker. They can change hats several times even when they are showing you homes.
Buyer Agent/ Buyers Broker in an Exclusive Buyer Agency office
An Exclusive Buyer Agency office is an office dedicated to only homebuyers. As such, they only represent the best interest of the buyer and never the seller. There is no double talk, secrets from the buyer or conflict of interest. They do not act as “transaction brokers” and never make double commission.
Duties of an Exclusive Buyer Agent: To promote the buyers wants and needs. To advocate their position. To disclose everything about the property or the seller. Exclusive Buyer Agents have a committed relationship of trust with the home buyer only.
They choose not to list homes so they never have an obligation to the seller or to push any particular inventory. However, they do have access to any and all properties on the market and will show you all suitable properties without bias.
Buyers Broker of Florida is an Exclusive Buyer Brokerage that represents only the home buyer. We provide all home buyers with the following:
100% Loyalty: Only and always on your side on every property, in all situations, with no conflict of interest.
100% Confidentiality: We do not blab about your money, your job, or how much you love the property. We keep your personal life confidential.
100% full disclosure: We tell you everything...the good, the bad, and the ugly. Absolutely no secrets.
Skill care and obedience. We stay educated about real estate nuances in order to serve you best and will always obey your lawful instructions.
Remember: Not all brokers are the same. They all have different relationships and different duties They also have different levels of experience. You are always best served by a brokerage that is committed only to you. One that is experienced at buyer representation.
Why you should have Exclusive Buyer Representation in Florida
Are you overwhelmed with home buying? Stressed about overpaying? Not sure of where to buy? We are knee deep in working daily only for buyers. As Exclusive Buyer Brokers we know all the home buying answers and can make you a confident home buyer.
Often, sellers hide problems and sellers agents claim not to know. Even experienced home buyers cannot figure out on their own how to resolve issues...or even recognize a problem.
Here is a true short story...limited to just 3 transactions that are closing end of this month.
#1 Nice luxury home. Inspections reveal that the top-of-the-line washer does not work. Agent wants to replace it with a cheap model, claiming that it is the same model...it’s not. We negotiate a brand new top of the line model for the buyer.
#2 We negotiate to have the seller fix the roof. Seller does a minor roof repair but skips the most important part; replacing the rotten wood. We make them go back and replace the rotten wood and also provide a receipt.
#3 New construction, national builder. Buyer signed contract months ago with builder which included some promised upgrades. Now builder claims that they can’t, because they no longer provide that in the community...so is it just too bad for the buyer? Not in my book...
There are differences of opinion and problems that come up in most transactions which require a skilled buyers agent to resolve, negotiate or renegotiate. We at Buyers Broker of Florida are experienced Exclusive Buyer Agents and pros at spotting the red flags. We remove the buyers stress by resolving issues for them.
Remember: The reason there are two attorneys in every courtroom is so that each side has an advocate and is treated fairly. The reason attorneys are not allowed to represent both the plaintiff and defendant in the same case is because it is an inherent conflict of interest. Think about it.
Commission paid to Orlando Florida’s Buyer Representatives
Contrary to what many consumers think, the commission to all brokers in Florida is paid the same. Brokers are either paid by the seller, or from a co-op fee from the listing
office or a broker fee included in the contract. The home buyer does not pay an additional fee for representation.
We look forward to hearing from you and thank you for your interest in Buyer Representatives Orlando FL. 407-539-1053
In case you cannot view this video here, please click the link below to view Buyer Representatives Orlando FL on my YouTube channel: https://www.youtube.com/watch?v=aQPuX2KmFUs&list=PLp2S85it34B7PAVNJgmVXjylpIh5qwnb8&index=8&t=0s
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