Unmasking Buyer Agency
As a productive Realtor I'm on the streets a lot, constantly looking at and showing properties, which puts me in touch with hundreds of Realtors monthly and it never ceases to amaze me how few of the Realtors in my market and markets across the country don't seem to understand the concept of buyer agency. This one fact may be the reason why it's so hard to sell our prospects on the concept! It seems to make many agents uncomfortable to ask for the listing when a buyer is looking for a home or maybe they don't feel they can explain it to there prospects comfortably, I represent everyone of my buyers as a client and when I list a property the next document that comes out is the Buyer Agency Listing agreement, no questions asked. My question to you folks out there is why aren't more Realtors asking there prospects for that level of commitment? They expect it from us! On all my listings, when an agent is showing my properties I ask if they represent the individual as a customer or client, the usual first response is what's the difference! I'd have to say honestly that only 5 out 10 agents out there really understand the concept of buyer agency as a way of doing business, I think that most understand the concept they learned in Real Estate School!
Many times when an agent is showing my properties without the protection of a Buyer Agency agreement, they will begin to act as a fiduciary to that buyer which is absolutely the incorrect way of doing business, most don't even realize that they are practicing undisclosed dual agency! Which in most MLS systems will cost you your license? They are risking there livelihood and they are also putting there firm at risk for a series of lawsuits which they can't win.
Buyer Agency is just another tool in daily lives as Realtors, we need to use it exclusively when dealing with buyers or we need to let them know we represent the seller in this transaction and must act accordingly!