Are you planning to buy or sell a home in Florida? If so, understanding how real estate agents represent clients is essential. Recent changes in the industry, particularly following the NAR settlement, have made it more important than ever to know exactly who your agent is working for and how they can assist you in achieving your real estate goals.
In Florida, there are three main types of real estate agencies: Transaction Broker, Single Agent, and Non-Representative Broker. Each type provides a different level of representation, and knowing the distinctions can make a significant difference in your experience. Let’s break them down:
1. Transaction Broker
A transaction broker is the most common type of agency in Florida. In this role, the agent provides limited representation to both the buyer and seller in a transaction.
Key characteristics:
- Neutral and fair to both parties
- Facilitates the transaction without favoring one side
- Cannot disclose confidential information, like the lowest price a seller might accept or the highest price a buyer is willing to pay
Transaction brokers are ideal for clients seeking a balanced approach, but they may not be the best choice if you need a strong advocate for your interests.
2. Single Agent
A single agent offers full fiduciary representation to either the buyer or the seller, but never both in the same transaction.
Key characteristics:
- Works exclusively for their client’s best interests
- Owes the client loyalty, confidentiality, and full disclosure
- Can negotiate aggressively on behalf of their client
If you want an agent fully dedicated to protecting your interests, a single agent might be the best fit.
3. Non-Representative Broker
A non-representative broker provides no representation to either party. Instead, they act as a facilitator to help complete the transaction.
Key characteristics:
- Provides basic services such as preparing documents and managing logistics
- Does not offer advice, advocacy, or confidentiality
This type of agency is uncommon and is typically used in straightforward transactions where neither party requires professional guidance.
Why Does This Matter?
Understanding these agency types is crucial when choosing a real estate agent. The level of representation you receive impacts the advice, confidentiality, and advocacy you’ll get during your transaction.
Whether you’re buying your first home, selling a property, or investing in real estate, knowing how your agent represents you can save time, money, and stress.
Choosing the Right Representation for You
If you’re unsure which type of agency is right for your needs, consult with a professional who can explain the differences in greater detail. At Stratwell, we’re here to help you navigate the complexities of real estate and ensure you make informed decisions every step of the way.
Watch the Video for More Insights
For a deeper dive into these agency types, watch our video: Choosing a Real Estate Agent: The Different Types of Representation Explained. You’ll gain valuable tips to help you make the best decision for your next transaction.
Got questions? Drop us a comment or reach out directly. Don’t forget to share this blog with anyone you know who’s entering the real estate market!
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