Seller Representation

Agency: Is there “agency” in Florida anymore? Most agents in Florida work for their “customers” as transaction agents. This means they have no agency relationship of loyalty and obedience to either the buyer or seller unless there is an expressed agency agreement. What agents do promise as transaction brokers or agents is to treat all parties equally and not to the benefit of one party. This is a rather strange relationship especially when a listing agent is working with a buyer and seller. What happens during negotiations? Who is the listing agent working for? Transaction broker means no one. The agent is working the deal or the transaction. Most buyers and sellers truly don’t understand this transaction broker concept. Some states such as California have completely different rules regarding agency. Some buyers/sellers prefer to work in an Exclusive Agency relationship versus Transaction Broker relationship. Principle 1 Agents will work for sellers or buyers in either capacity, but we prefer Exclusive Agency.

Pros of Exclusive Agency are best understood by looking at the cons of a Transactional Broker relationship…

When selling a home, it is more natural to work for one side’s benefit as opposed to trying to walk the fine line of being an impartial negotiator, as is the case of Transactional Broker. A party’s best interest is defined by having an agent working solely for you because the sales price that is good for one party or the other differs….in the case of a Seller it is the highest price; in the case of the Buyer it is the lowest price. A real estate agent working for the “deal” as a Transactional Broker is negotiating a “fair” price. If a Transactional Broker is negotiating for the deal and no other agent is involved, the typical outcome is a fair price because the agent’s goal is to make the deal happen. At Principle 1 Realty, we believe it is in the best interest of the party we work with to work in an Exclusive Agency relationship. With Exclusive Agency, the party we represent is actually a “client” not a customer and we have a fiduciary obligation to perform solely in our client’s best interest.