The real estate business never stands still, so methods and practices are always updating as the market changes and evolves. In my several years of practicing
Celebration FL real estate, I have seen several updates to the MLS (Multiple Listing Service), Realtor.com, forms and contracts, and so on. You have be to be adaptable in this business, and it is vital to stay on top of these changes.
September of 2010 brought us one of the more drastic changes I have seen in the last few years. The FAR/BAR Purchase & Sale Agreement was updated to reflect changes in the market and how business was being conducted. The reason for the name FAR/BAR is that the contract is constructed by the Florida Association of Realtors in conjunction with the BAR Association. This makes for a legally sound and binging agreement. The biggest notable change in this contract is its length – the former FAR/BAR contract was 4‐5 pages long depending on the type of sale. Now the contract is 10‐11 pages long!
I have taken the time to familiarize myself with every clause of this document in order to make sure that I am thoroughly representing my clients… but have you? The reason that I ask this question is that I have often overheard people say that they don’t need a Realtor to help them purchase a home. They can find on their own and just work with the listing agent. They feel that this will get them a better price, because the sellers are only paying commission to one real estate agent. That is not usually how it works out.
The listing agent has an agreement with the sellers for the total amount of commission (5% to 6% in most cases). The agreement states that the listing agent will offer half of the commission to the buyer’s agent in order to entice agents to bring their clients to the listing. If buyers come without their own agents, the listing agent gets all of the commission unless another agreement has been made with the sellers. My point is they are not guaranteed advantage to not having your own representation, and there are huge disadvantages.
For example, most people have never seen the 10‐11 page Contract for Sales and Purchase that I discussed earlier. How would buyers navigate this document and make sure that they are properly protected if they are not familiar with it? This is where having a great Realtor really make s a difference. The FAR/BAR truly is written to offer protecting for all parties in a real estate transaction, but you have to know how to use it properly.
Your Realtor will make sure that you have an ample inspection clause to make sure that you have time to have a trained home inspector assess the condition of the property. Your Realtor will also make sure that the contract reflects you specific financial goals by making sure you are paying a price that will appraise, capping the interest rate on the contract to protect from unexpected rate fluctuations, and allocating who pays which closing costs so there are no surprises at the closing table. Real estate transactions involve one of the biggest financial investments you will make in your lifetime, so why would you trust it to anyone other than a professional Realtor?
