Understanding Buyer’s Agency in CT

So, you’ve decided to begin your home buying journey

You’ve browsed listings online, imagined your dream home, and even attended a few open houses. But there’s one important step you haven’t taken yet: committing to work with a dedicated real estate buyer’s agent. If you’re thinking of going through the home buying process, here’s what you need to know.

What to Expect when Visiting an Open House

When you attend a public open house, the realtor hosting it is obligated to treat you honestly and comply with all federal laws, including those related to fair housing and their brokerage. They must disclose any known material or physical defects of the property and ensure they do not provide false information, giving you a clear and accurate picture of the property.

As a prospective buyer, you can expect the hosting agent to maintain confidentiality and not disclose any private details about the seller such as their timeline or plans, Even during an open house, a real estate agent’s fiduciary duties are owed to the party with whom they have a contract. This means the agent’s loyalty and obligations are directed towards either the seller, if they have a Seller’s Agency agreement or the buyer, if they have a Buyer’s Agency agreement.

Types of Agency Relationships in CT

• Unrepresented Party – When buying a home, you have the option to proceed without representation. In this scenario, as an unrepresented party, you’ll need to handle all stages of the transaction on your own.
• Single Agency – One agent that works for you. The brokerage exclusively represents you as the client, ensuring you are the only party they advocate for in the transaction. You can comfortably lean on your agent to navigate you toward your goals.
• Dual Agency – One agent represents both the buyer and the seller. This occurs when the brokerage represent both the buyer and seller in the same transaction. In this arrangement, the brokerage does not provide exclusive representation to either party. As a result, there is no undivided loyalty to one client over the other.
• Designated Agency – Two agents, the buyer’s agent and the seller’s agent is affiliated with the same brokerage. This occurs when the brokerage acts as a dual agent, but assigns one agent to exclusively represent the buyer and another to represent the seller. Each designated agent has full fiduciary duties and a loyalty to the party they are contracted with, whether through buyer or seller representation.

*These agency relationships also apply to landlords and tenants for rentals.

The Importance of a Written Agreement

A Seller/Landlord becomes a client of a real estate brokerage or agent by signing a listing agreement with the firm. Similarly, a Buyer/Tenant becomes a client by signing a Buyer/Tenant Representation Agreement.These agreements outline important details such as the duration of representation, fees, and other terms and specifics.

Without a written agreement for agency representation, you are considered a prospective or unrepresented party—not a client. By signing a unrepresented party disclosure  you forfeit the critical guidance and expertise an agent can offer in the transaction, which can be essential to achieving your real estate goals.

Agent Compensation is ALWAYS Negotiable!

The rate or amount that a brokerage can charge for its services is not set by law. Instead, it is determined by each brokerage and may be negotiable between you and your real estate agent. This flexibility allows you to have a conversation, and agree on terms that best fit your goals and budget.

Being aware of buyer’s agency is essential because it ensures that an agent represents only your interests in the transaction. This helps you make informed decisions, negotiate effectively, and navigate the buying process smoothly, knowing that your agent is dedicated to getting the best deal for you. As by signing the listing agreement, ensures your home gets the best exposure and offers with expert guidance every step of the way.

Let’s get started on a smooth and successful sale! Reach out to me today and start living your dream!