Cost to Work with a Realtor in Sarasota (Buyer Agent)
How Much Do My Services Cost?
Typical Cost to Work with a Realtor in Sarasota
First and foremost, working with a Buyer’s Agent typically doesn’t cost you a single penny until you close on your newly acquired home. You are not paying ahead of time to receive representation. On our initial consultation you learn what the costs look like, how and when they will get disbursed and by whom.
While there is a nominal Buyer Broker Transaction Fee ($395) charged to a buyer at closing that goes to my Broker for “quality control”, my fee typically comes from the Seller, Listing Broker or Builder for bringing a Buyer to the closing table (whether it is NEW or EXISTING construction).
This compensation model has been a staple in the real estate industry for over a hundred years and was designed so that buyers had equal representation in the transaction without having to come out of pocket directly for the service.
I have never been involved in a transaction where the Seller, the Listing Broker or the Builder did not offer compensation to the Buyer’s Agent.
IF the Seller, the Listing Broker or the Builder does not offer compensation to a Buyer Agent, my fee (3.0%) would then be the buyer’s responsibility. In that situation the compensation would be negotiated to have the Seller or Builder pay the fee at closing on behalf of the Buyer.
How Much Can I Save You?
My goal is to save you a lot! Let’s look at the benefits and cost savings of working with a knowledgable Buyer Agent, and how having a representative in your corner protects your interests. The Seller is protected, and you should be protected as well!
- I will help you find the right lender for their unique situation. Not all lenders are created equal. They all have their own requirements and offerings. I know which lenders offers the best interest rates, as well as which offer the lowest upfront fee’s. How long you plan to own the home will usually determine whether it is best to find the lender who offer lower upfront fee’s or the lender with a lower interest rate that will save more money over the duration of the loan. Finding the right lender will save you over $100K+ over the life of the loan. Huge savings. If your agent is pushing you to one lender, they are probably getting a kickback and not looking out for your best interest. Fire them immediately!
- I will help you find the right home for you, even if it takes looking at 50 different homes over 6 months! I have access to all homes listed for sale, including New Construction and For Sale By Owner properties. If your agent is pushing you to homes you have no interest in, fire them immediately, as they are not working in your best interest.
- I negotiate on your behalf to get you the best possible price. If your agent is not trying to negotiate a lower price on your behalf, fire them immediately as they are not working in your best interest.
- I help you with home inspections that can discover undisclosed defects the home may have. If any are found I negotiate to have those repaired before closing, or secure a credit from the seller so you can remedy the defects after closing. If your agent is not doing this and you end up canceling the contract on that home, fire your agent immediately as they are not working in your best interest!
- If needed I can help you find or acquire downpayment and closing cost assistance. If your agent doesn’t know how to help you with this, fire them immediately as they are not working in your best intrerest.
I have personally saved my Buying clients up to 15% off the list price through initial purchase price negotiations, then continued negotiations throughout the entire transaction including: repair negotiations, negotiating property encumbrance or encroachment issues and having the seller cure (if possible) before closing, and through referring trusted service providers who don’t take advantage of home buyers. The amount I save a buyer is typically more than the fee a buyer would have paid at closing for my services.
Other Home Buying Services Performed For the Buyer
Once the right home is found the Buyer's Agent should:
- Perform a Comparable Market Analysis (CMA) - which establishes the Market Value range (RVM) for the home. (The Seller's representative is not ethically permitted to perform this service for the Buyer, and even if they were, would you trust them?)
- Review and explain the pros and cons of the two main Purchase Agreement Contracts, to help the Buyer determine which contract and terms are more favorable to the Buyer in their unique situation. (The Seller's representative cannot help you here either.)
- Negotiate on behalf of Buyer's best interests. Making sure Buyer is getting the best deal possible, but also making sure the Buyer is not offering more than the home would appraise for, especailly if the purchase is contingent on the Buyer obtaining a mortgage. (Again, seller's rep cannot look out for the best interest of the buyer and seller at the same time. Their loyalty is always to their seller.)
- Supply the Buyer with reputable Attorney or Title company contacts, who will prepare closing documents, confirm seller has a marketable title, secure title insurance, compile closing and lender documents, review and have buyer sign all documents, and record all necessary official documents once closing procedures have been completed.
- Help the Buyer dertermine which inspections they should have performed and supply Buyer with reputable Home Inspector contacts. Then: Coordinate the appropriate home inspections with buyer and seller; attend the home inspections with the buyer; and negotiate all contract warranted repairs that are found during the inspections.
- Work with Buyer's Lender to set-up the Appraisal after post inspection negotiations. Give them access to the home if needed.
- If necessary - facilitate HOA applications, home warranty registration, coordinate with current and new service providers and supply buyer with contact information for all services that need to be tranfered or opened.
- Conduct the Final Walkthrough with the buyer to confirm the seller has made all negotiated repairs and confirm the home has been cleaned out and is ready for the Buyer to move in.
- Attend the Closing with the Buyer at the Attorney or Title Comapny office.
- Follow up with buyer to confirm everything is good after the move-in.
Things to Keep in Mind
The buyer typically pays up to $750 to have multiple home inspection’s performed within the first 7-15 days after the Purchase Agreement contract is executed (known as the inspection period).
If the buyer is getting a mortgage they may also have to pay for the Lender’s Appraisal ($500+/-) shortly thereafter. If the Appraisal comes back LOWER than the purchase price on the contract the buyer will have to bring more money to the closing table to cover the difference (the lender uses Appraised value to determine amount they will loan you), OR, the Seller will have to agree to lower the Purchase Price to the Appraised Value (sellers typically refuse to do this because the buyer has already agreed to pay the Contract Price). If the buyer does not have the cash to cover the difference between the apprasied price and the contract price, and if the Seller is not willing to reduce the contract price, the contract will have to be canceled. The buyer will have wasted the cost of their inspection costs, the appraisal cost, and could potentially lose their good faith deposit (1%-5% of Purchase Price) if their representative didn’t protect it properly. OUCH!
Representation is imperative to protect your interests! You cannot afford not to have a Buyer’s Agent represent your interests in your real estate transaction.
Frequently Asked Questions
1. Why Should I Use a Realtor® When Buying a Home?
A Realtor® brings expertise, market knowledge, and negotiation skills to the home-buying process. We help you find properties that match your specific needs, we guide you through the complex paperwork, and we advocate for your interests during negotiations, potentially saving you time and money.
2. How Much Does it Cost to Use a Realtor® as a Buyer?
In just about all cases, the Buyer’s Real Estate Agent is compensated by the seller’s Real Estate Broker through a commission split agreed upon prior to the property being listed in the MLS. Most if not all real estate companies still charge a nominal transaction fee for processing the transaction paperwork. However, it’s important to confirm this in your Buyer Agent Agreement, as terms can vary.
3. What is a Buyer Agent Agreement, and do I Need One?
A Buyer Agent Agreement is a contract outlining the agent responsibilities, compensation framework, and the duration of your working relationship. (As of August 2024 it is required of all Buyer Agents to have a signed Agreement with a Buyer before showing them a property, or face a $500 fine.) Review it carefully to understand your obligations before signing.
4. What Does a Realtor® do That I Can’t do Myself?
A Realtor® has access to the Multiple Listing Service (MLS) database; tons of market data metrics, and industry connections that are not readily available to the public. They can point you to appropriate lenders, insurers, contractors, inspectors and closing agents; identify and parse through specifically detailed & available properties; streamline the scheduling of showings (timing is important for some properties); provide pricing, property and community insights; confidently negotiate contracts; and coordinate with lenders, inspectors, surveyors, appraisers, title agents, utility companies, contractors and attorneys to ensure a smooth transaction.
5. Can I Buy a Home Without a Realtor®?
Yes, you can buy a home without a Realtor®, but it requires handling all of the complexities of the transaction yourself. A realtor’s expertise will reduce financial and transactional risks, point you in the right direction on all tranactional fronts, most likely save you tens of thousands of dollars through negotiations and lender reccomendations, and streamline the process, all while looking out for your best interests. It is in their best interest to do so – their reputation and return business from clients and referrals is the lifeblood of a Realtor®. Also, this is the largest purchase you may ever make. Do you really want to go at it without your own representation?
6. Can a Realtor® Help me Find Homes That Fit my Budget?
Yes, this is especially important if taxes, insurance and HOA payments are to be considered as a part of your pre-approval process. 3rd party websites do not account for your budget when searching for an available property. A Realtor® can filter listings based on your budget and preferences, ensuring you focus on homes you are capable of purchasing. They can also connect you with lenders to get you pre-approved, giving you a clear picture of your purchasing power.
7. What Paperwork And Legal Requirements Are Involved?
Buying a home involves legal contracts, disclosures, as well as Federal and State regulations. We guide you through preparing the purchase agreement, appropriate disclosures, and all required forms.
8. What Happens During The Negotiation Process?
We work closely with you to create the purchase contract based on price and terms you decide to offer. The offer will be presented to the seller via their agent shortly thereafter. We negotiate on your behalf to secure you the best deal possible. We advise you throughout the entire process.
9. Can a Realtor® Help With New Construction Homes?
Yes, a Realtor® can help you find a new construction community that matches your lifestyle as well as guide you when buying a new construction home, negotiating with builders, reviewing contracts, and ensuring upgrades or warranties are clearly outlined. They can also help you avoid pitfalls specific to new builds.
10. Can a Realtor® Help With For Sale By Owner Homes?
Yes, a Realtor® can help you with For Sale By Owner properties as well. Even though the owner is not using a Real Estate Agent to sell the property, most still offer to pay the Agent’s compensation. The Agent compensation can also be negotiated into the contract if not.
11. What Should I Expect At Closing?
At closing you will sign the final paperwork, including the settlement statement, closing agent disclosures and lender paperwork, if necessary. The closing agent will then file the official Deed (signed by seller) with the county which transfers the title of the property into your name. Don’t forget to bring an ID. We coordinate with the attorney or title company to make sure everyone knows where to be and at what time.
12. What Do I Do After Closing?
You will receive all available keys and copies of closing documents. You can now breathe a sigh of relief, start moving in and plan a house warming party so your friends can buy you stuff you never knew you needed! Congratulations!
ALEX MOREL, REALTOR®
Meet Alex, a Sarasota native with over 40 years of local knowledge and 15 years of experience as a licensed Realtor®. Growing up in a family of home builders and spending a decade in engineering, Alex combines technical expertise with a personalized approach to real estate. Serving Sarasota, Manatee, and Charlotte counties, Alex is dedicated to making your home buying or selling journey seamless and successful.
- Licensed Realtor® since 2010
- Specializes in Residential Real Estate in Sarasota Florida
- Representative For Both Buyers & Sellers
- Member of National, Florida & Sarasota Association of Realtors
- Served on Sarasota Board of Realtors Committee's between 2019-2021
Why Buy a Home in Sarasota With Us?
- Local expertise with in-depth market knowledge.
- Background in residential construction and engineering.
- We specialize in negotiating the best deal for our client.
- We work for you, not the seller.
- Exclusive access to all listings – existing, new and FSBO.
- Seamless process – stress-free buying with expert guidance.
- Personalized service – we match you with your perfect lifestyle.
Free Buyer's Guide. Our Guide Covers The Following:
- Our company information.
- How we represent our customer’s interest and not the sellers.
- The multiple services we provide buyers.
- Important info that buyers should know.
- What to expect during the process.
- What to expect at the closing.
- New construction representation.
- For sale by owner representation.
- A moving timeline and checklist.
- A change of address checklist.
- Important local phone numbers.
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