Own Luxury Homes®
Step 2: Choose the Right Real Estate Agent
Single agent fiduciary: 6 duties including loyalty and confidentiality. Transaction broker: none — neutral facilitator; FL default. 5 questions before signing: fiduciary or transaction broker? brokerage conflict? production? New construction: register agent on FIRST visit or builder won't honor it later. Post-NAR Aug 2024: must sign buyer agreement before touring; read it before signing. CO banned dual agency; NM converts to facilitator by statute. Own Luxury Homes® 12-Point Agent Integrity Audit™ — single agency only.
Step 2: How to Choose the Right Real Estate Agent — The Decision That Determines Every Negotiation
Every guide tells you to "find a good agent." None of them tell you what "good" actually means in legal terms — what your agent is and is not required to do for you, what happens to your protection when the agent's brokerage also represents the seller, and what specific language in a buyer agreement signals that you're getting real representation vs facilitation. This step covers what no brokerage wants you to know because the honest answer affects their revenue.
Step 2A: Understand What Your Agent Is Legally Required to Do
Single Agent Fiduciary vs Transaction Broker
Single agent (what you want): legally obligated to act in your best interest above all others. Must keep your negotiating position confidential from the seller. Must advise you to offer less if the market supports it, even if that means a lower commission. Must advise you to walk away if walking away is in your interest. Transaction broker (what many buyers have without knowing): neutral facilitator — not your advocate, not the seller's advocate. Not required to maintain full confidentiality of your negotiating position. Not required to advise you against closing if closing benefits the agent financially. In Florida: transaction brokerage is the DEFAULT relationship. You must affirmatively request single agency in writing. In New Mexico: if your agent also represents the seller, they are legally required to convert to "facilitator" by statute. In Colorado: dual agency is banned outright; if the brokerage represents both parties, both become transaction broker clients. Ask before you tour a single home: "Are you a single agent fiduciary for me, or a transaction broker?"
Step 2B: The Five Questions to Ask Every Agent Before Signing Anything
| Question | What a Good Answer Sounds Like | Red Flag Answer |
|---|---|---|
| "Are you a single agent fiduciary for me, or a transaction broker?" | "I am your single agent; I owe you full fiduciary duties including loyalty and confidentiality" | "I work in your best interests" / "I'll represent you fully" — this describes intent, not legal obligation |
| "If your brokerage also lists a property I want to buy, what happens to my representation?" | "We don't list properties — we only represent buyers" OR "I would refer you to an independent agent to avoid the conflict" | "We handle that with designated agency" — means two agents from the same brokerage, same financial interest in closing |
| "What is your experience in my specific price range and target neighborhoods?" | Specific: number of transactions in the last 12 months, addresses of comparable homes, days-to-close average | "I work all price ranges" / "I know the area well" — vague; no verifiable specifics |
| "How many buyers are you currently working with, and how many of them are in my target area?" | Direct, honest answer — busy agents are often good but need capacity for your search | "As many as it takes" — non-answer |
| "Can I see your written buyer representation agreement before we meet?" | Sends it immediately; encourages you to read it; explains terms | Reluctance or deflection; "we'll go over it at our meeting" |
Step 2C: How to Read the Buyer Representation Agreement
What to Look For and What to Reject
The buyer representation agreement is the document that creates your agency relationship. Green flags: the word "fiduciary" appears; "single agent" is specified; fiduciary duties are listed (loyalty, confidentiality, disclosure, obedience, care, accounting); language states the agent will not represent the seller of any property you want to purchase. Red flags: "transaction broker" or "limited representation" language; "may convert to dual agency with your consent" — this lets them eliminate your fiduciary protection; "designated agency" language — means two agents from the same brokerage; no mention of representation type. The post-NAR settlement requirement (August 2024): you must sign a written buyer representation agreement before an agent shows you homes. This rule was intended to create transparency. It only delivers transparency if you read and understand what you're signing. Do not sign a buyer agreement at a first meeting under time pressure without knowing exactly what relationship type it creates.
Step 2D: New Construction — The First-Visit Rule
Register Your Agent Before You Walk Through Any Builder's Door
For new construction purchases: your buyer's agent must be registered with the builder's sales office on your FIRST visit to any community. If you visit a builder's model home or sales office without your registered agent, most production builders (DR Horton, Lennar, Pulte, Toll Brothers) will not honor an agent registration made after that initial visit. The builder's commission is built into every home's price regardless of whether a buyer's agent is involved. Without your agent registered: that commission goes to the builder's sales team or stays as margin. It does not come to you as a discount. Call your agent before visiting any builder community. Not after.
Step 2E: Interview at Least Three Agents
The Selection Process
Three is the minimum: one agent you found through referral from someone who recently bought in your target area, one agent whose production volume you verified independently, one agent from a buyer-specialist firm. Compare: their answers to the five questions above, their buyer agreement language, their responsiveness (a slow-responding agent in the interview will be a slow-responding agent when you need to submit an offer in 24 hours), their knowledge of your specific market — not "I know that area" but "the last comparable sold at $387/sqft; this listing is at $410/sqft and has 34 days on market."
“The agent interview question that reveals the most: "Tell me about a deal you advised a buyer to walk away from even though you had already put significant time into it." An agent who has never advised a buyer to walk away is an agent whose financial interest in closing has always outweighed their client's interest in the right decision. That alignment problem doesn't disappear once they represent you. A fiduciary agent should be able to name a situation where they told a buyer the honest answer — "this isn't the right house, we should walk" — even when it cost them their commission.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
How do I choose a real estate agent when buying a home?
Ask five questions before signing anything: (1) Are you a single agent fiduciary or transaction broker? (2) What happens to my representation if your brokerage also lists a property I want? (3) What is your verified production in my price range and target area? (4) How many buyers are you currently working with? (5) Can I see the buyer representation agreement before we meet? Read the agreement before signing. Verify that "single agent" and "fiduciary" appear. Interview at least three agents before committing.
What is a buyer representation agreement?
A written contract between you and a real estate agent (or their brokerage) that defines the legal relationship, services provided, and compensation. Since August 2024 (NAR settlement), agents must have a signed buyer agreement before showing you homes. The agreement should specify: single agent or transaction broker, all fiduciary duties, what happens if the agent's brokerage also represents a seller, and the agent's compensation structure. Do not sign any agreement without understanding the representation type.
Own Luxury Homes® — single-agency specialists verified before you sign. 12-Point Agent Integrity Audit™. Find a verified buyer specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)