By Steve Martin Smith, Broker/Owner of Slice of Florida Realty

What You Need to Know About Your Real Estate Agent’s Obligations When Buying a Home

When you’re searching for your dream home, you likely expect your real estate agent to guide you through the process by showing you properties that match your criteria—price, location, size, and all your must-haves. But did you know that without a specific agreement, your agent isn’t always required to show you every available property? Understanding how real estate professionals operate can empower you to make informed decisions and ensure you see the homes that best fit your needs. Let’s explore what this means for you as a homebuyer.

The Myth of Universal Obligation

As a homebuyer, it’s natural to believe that your real estate professional has a duty to present every listing that matches your needs. However, without a signed single agency agreement, brokers and agents are not obligated to show you every property on the market. This might seem surprising—why wouldn’t an agent show you a home that checks all your boxes? The answer often comes down to practical and financial considerations.

Understanding Agent Motivation

Consider a scenario where a seller offers a commission lower than what your agent typically expects, and you haven’t agreed to pay your broker directly. This could naturally influence your agent’s motivation to prioritize that property. Alternatively, your agent might prefer to avoid a listing agent for professional reasons, even if the home fits your criteria. While these situations may or may not be common, they illustrate an important point: without a single agency agreement, homebuyers may not receive the comprehensive service they expect. Real estate professionals, like anyone, need to earn a living, and without a clear agreement, they have the discretion to focus on properties that align with both your needs and their business interests.

What Is a Single Agency Agreement?

A single agency agreement is a contract between you (the buyer) and your real estate broker’s firm that establishes a formal relationship. This agreement typically outlines the broker’s responsibilities, including their commitment to act in your best interests and show you all properties that meet your criteria, regardless of external factors like commission rates. In return, you agree to work exclusively with that broker and their firm for your home purchase.

This agreement creates a fiduciary duty, meaning your real estate professional is legally obligated to prioritize your interests above their own or those of the seller. Without it, your agent may be operating under a transaction brokerage relationship, which is very common in Florida. In a transaction brokerage relationship, the agent facilitates the transaction but does not represent either party with fiduciary duties, limiting their obligations to you compared to a single agency agreement.

Why Does This Matter?

The absence of a single agency agreement can affect your home-buying experience in several ways:

1) Limited Property Options: Agents may skip listings with low commissions or other unfavorable terms, meaning you might miss out on properties that could be a perfect fit.

2) Potential Misalignment of Interests: In a transaction brokerage relationship, your real estate professional’s role is more neutral, which may not always align perfectly with your goals as a buyer.

3) Missed Opportunities: In competitive markets, time is critical. If your agent isn’t proactively showing you all available properties, you could lose out on a great home to another buyer.

Conversely, a single agency agreement provides clarity and protection. It ensures your real estate professional is fully committed to finding the right home for you, regardless of external factors, and gives you confidence that they’re working exclusively in your best interest.

How to Protect Your Interests

Before you start touring homes or browsing listings, have an open conversation with your real estate professional about their obligations and the type of agreement you’ll have. Here are some steps to take:

• Ask About Single Agency Agreements: Understand what this agreement entails, including its benefits and any obligations on your part. Clarify how it differs from a transaction brokerage relationship and how it affects the properties you’ll see.
• Discuss Commission Structures: While it may feel uncomfortable, ask your agent how commissions impact their approach. A transparent real estate professional will explain how they balance your needs with their business realities.
• Review the Agreement Carefully: Before signing anything, read the fine print. Ensure you understand the duration of the agreement, what happens if you want to work with another agent, and any other key terms.
• Choose a Broker You Trust: A single agency agreement is only as effective as the real estate professional behind it. Work with someone who communicates clearly, listens to your needs, and has a proven track record of prioritizing clients.

Final Thoughts: Empower Your Home-buying Journey

Buying a home is one of the most significant decisions you’ll make, and having the right real estate professional by your side can make all the difference. By understanding your agent’s obligations—and securing a single agency agreement when appropriate—you can ensure you’re seeing the full range of properties that match your criteria. This knowledge empowers you to make informed decisions and increases your chances of finding the perfect home. Steve Martin Smith, now broker/owner of Slice of Florida Realty, helped more buyers find their dream homes than any other real estate professional at RE/MAX Platinum Realty, a top Sarasota County franchise with six offices, from 2020 through 2024. Call Steve at (941) 894-9800 or visit SliceOfFlorida.com to start your Florida home-buying journey, and subscribe to the Real Estate Agent Man YouTube channel, follow on your favorite podcast platform, or connect on social media for more expert tips!