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A broker is someone who makes deals between the buyer and yourself and who helps you to locate your ideal home or sell it. You’ll want a reputable liaison that will act on your behalf and to make sure that everything is legally binding so that problems don’t incur once you are settled into your new house.
In the broker agreement, there should be 4 important things visible on the form. The first is the license number of the state you are purchasing your home in and the license number of the broker. The contract should also include the parties who are purchasing and selling as well as the name of the property itself.
When making the decision to sign a broker fee contract, particular things need to be taken in to consideration. Here are some of them.
#1) The Fee
Every broker agreement has a fee that should be stated clearly in the agreement and determined whether or not it’s refundable.
Such factors should be clearly stated within the agreement to avoid confusion and regrettably a lawsuit in the future. If the amount or refund isn’t clearly visible, do not sign yet. Ask your broker about it first and have them put it in writing.
A buyer agent might take weeks to months to find you a home. In which case, you should be able to opt out of the contract for whatever reason.
Sometimes there is a an expiration date, in which case the contract ends. You can also give written notices to each other as proof of agreement to terminate the bond.
#3) Each Broker Is Different
Each state is different in how their brokers operate. In the state of New York, you may or may not have a broker in order to purchase a place.
Sometimes, depending on how much the broker is getting paid, your broker may work harder or slower, especially if there is an added benefit in working for you.
Sometimes fees are also reduced, especially if your broker is doing double duty of assisting you to sell your place and to purchase a new one.
#4) Be Sure
Since your broker is likely to stick with you until the end, it’s your job to make sure that he or she is qualified to perform what you have hired them to do.
The broker should be committed to you and your happiness and should work hard to find you places to your liking according to your budget and for the best deal possible.
You shouldn’t expect your broker to be on-call at all hours everyday, but they shouldn’t go missing in action either. Regular contact through emails, voice mails, and physical mail should be ideal.
The difference between a great and a not so great agent is the ability to sell or buy a property in the time that you have specified. Stay away from an agent that never answers your points of contact and leaves property on the market to just sit there and you left out in the cold.
#6) Listen Up!
Your agent needs to be able to communicate to you what is feasible and realistic for you budget. He or she should also list a realistic expectation of when your property should sell for according to the market in that particular area.
An agent who won’t listen probably doesn’t have your best interest in mind and will be super frustrating to deal with. Instead, the agent should ask you questions such as your ideal neighborhood, the type of home you are looking for, your budget, and when you plan to buy/sell.
Before signing your agreement, make sure that your agent has the maturity and professional experience to get the job done without bringing out the bells and whistles that really hide their inexperience.
If your agent is canceling at the last minute, showing you places that aren’t on your wish list at all and displays organizational issues, this is a huge red flag to opt out of the agreement and find another agent.
Brokers are there to help us through the process of buying and selling a home. The best brokers are able to meet all of your qualifications while being patient enough to listen to your needs.
Before you sign your broker fee agreement, take these tips into consideration for the best experience possible.
Have you ever had a broker from hell? Or maybe your experience was an extremely positive one? Tell us about your experience in the world of buying and selling!