When you’re ready to dive into the world of buying or selling a home in Northern Virginia, understanding the jargon of real estate transactions can be helpful. Among the most crucial concepts are the buyer agency agreement and the listing agreement.
In this blog, we’ll unravel these terms to make your journey smoother with Nikki Lagouros, your trusted Northern Virginia real estate agent.
Understanding the Basics: Agency and Listing Agreements
What is an Agency Agreement?
An agency agreement in real estate is a contract between you and a real estate professional who will represent your interests. When you’re buying, it’s called a buyer agency agreement; when you’re selling, it might be referred to as a listing agreement.
This agreement outlines the responsibilities of each party, the duration of the agreement, and the terms under which the real estate agent receives compensation.
The Listing Agreement: Selling Your Home
A listing agreement is a type of agency agreement specifically for sellers. Nikki Lagouros deals primarily with the Exclusive Right to Sell.
- The “Exclusive Right to Sell” agreement is a contractual arrangement between a seller and a real estate agent, granting the agent the exclusive rights to market and sell a property. Under this agreement, the agent earns a commission for their marketing efforts and time.
- In contrast, Limited Services Agreements the services performed by the agent are limited to whatever is specifically stated in the agreement, and all parties agree the listing agent is absolved from their full fiduciary in regard the services that are not being performed per the contract. This can be a flat fee or percentage-based services fee. Those must also be clearly stated in the agreement.
Buyer Agency Agreement: Finding Your Dream Home
On the flip side, a buyer agency agreement is what buyers sign with their agent. This contract ensures the agent works on the buyer’s behalf, offering undivided loyalty and diligently working to find the best properties for sale. (The agent may represent multiple buyers at the same time, but will not represent the seller.) Agents must have a written agreement with the Buyer before showing property. The agreement also outlines the commission to be paid upon closing the deal. Nikki will partner with the Buyer’s lender to make sure every offer is structured in a way that leaves the buyer in a financially secure position.
It is required for agents to obtain a written agency agreement with buyers before showing them any properties. The duration of the agreement is flexible and negotiable.
The duration of the agreements is flexible and negotiable.
Key Features of Real Estate Agreements
- Exclusivity: Most agreements include some form of exclusivity, ensuring that the agent you choose has the sole right to represent you in specific real estate transactions. This can be for any purchase of a specific property or list of properties, or for the sale of specific properties.
- Commission: Agreements detail how your agent is compensated. Sellers typically pay a commission based on the sale price.
- Duration: Every agreement has an expiration date, protecting both parties if objectives are not met within a set timeframe.
- Multiple Listing Service (MLS): Sellers’ agents often list properties on the MLS, a database that makes details available to other real estate professionals, increasing exposure to potential buyers.
Required exclusive listing agreement or an exclusive buyer’s agent can offer several advantages:
- Dedicated Effort: Your agent is fully committed to either selling your home or finding your new one, which can lead to quicker, more efficient outcomes.
- Expertise and Negotiation: With a clear agreement, your agent is motivated to negotiate the best terms and price for you.
- Access to Professional Networks: Exclusive agents often have extensive networks, including access to off-market properties or potential buyers, increasing your chances of a successful transaction.
Choosing the Right Type of Agreement: What Are Your Needs?
Before signing any type of agreement, consider your specific needs:
- Selling: If you want the highest level of service and are comfortable with one agent managing all showings and negotiations, an exclusive right to sell is your best bet.
- Buying: An exclusive buyer agency agreement guarantees that your agent is looking out for your best interests, helping you navigate the complexities of purchasing a home.
The Right Agreement Makes All the Difference
In the intricate world of real estate transactions, having the right agreement in place is crucial. Whether you’re looking to buy or sell, understanding the nuances of real estate listing agreements and agency agreements can empower you to make informed decisions.
With Nikki by your side, you can navigate these waters confidently, knowing you have a knowledgeable and dedicated real estate professional in your corner. Remember, the right type of agreement can significantly impact your real estate experience, so choose wisely and start your journey on the right foot.