Buyers don't suck......do you?

I wouldn't list a property without a listing agreement. I wouldn't tell my buyer we are going to closing without a signed purchase and sale agreement.

I wonder why I wouldn't? Wow, I know! I 100% know I wouldn't be paid for my work. 

I just can't walk into a bank and say Billy Jones told me I can take $100 out of his account. So, here I am.  Can anyone hear, "Put your hands up slowly and your fingers behind your head".  My point is that we need a document,in this case a check, with the name of the person giving us money. Translation-We need a BBA to know who MIGHT bring us money. And that we have the right to take possession of that money.

A BBA may have a end date, but it can end early. Heck, we may be the one's that want to end it early.  If the buyer wants to end it early, so be it.

At least you can say that the responsiblities and expections of both parties are clearly explained when you have a BBA signed.

PERIOD.

I would say that I have more respect for myself now that I do this. I never looked at this in a positive light until you beat me enough with your previous posts. I finally got it. Yet, another light bulb moment for.

Do you know how much difference you and Missy make in my business? It's pretty astounding!

I feel it's my responsibility to educate my clients about BBA, about how I get paid and the mutual expectation of both parties that want to get into a business relationship together. it's not about tying someone to a contract. It's a mutual agreement.

Plus, buyers really dont want me to work for the Seller - without the BBA signed anyways. That's such a big thing but so many agents fail to explain. They only go on and on about how we get paid. Buyers could care-less.

BB,,,, Very well stated..Buyer Agreements are so important these days if you want to get paid for your efforts.  These are great !

Hi Bryant.... but I remember you mentioning that you hardly if ever work with Buyers??? Like you I am in Florida too so it's transaction broker for me.

I have the transaction broker notice signed at the very least for some buyers. In my experience buyers differ but it's the transaction broker notice at the very least then the BBA or else I do not show other homes to them. There is no guarantee of course but I require some kind of commitment. However I don't group buyers as they differ. In my experience no two are alike.

~ Lana

BB - It's rare that I don't discuss a broker buyer agreement at the intitial consultation.

It's makes sense to me, just like a listing agreement.

I have a different approach on this. I use Buyers Representation Agreement when it suits the situation. I read the potential client. I make the time-frame flexible. Sometimes, if I am showing a buyer 5 houses in a day, my RA will be for those 5 houses. Sometimes I go a generic one for 30, 60 or 90 days.

I've had clients that I've worked with whom I've never made sign one (until we write the offer, anyway). I sell them on my services, explain the buyers' rep agreement to them, and give them the choice. I am always firm on covering myself on houses I show. 

I feel like after my buyers work with me a little and get to know me, they would have no reason to go elsewhere. I also explain how important it is for them, if they value my service to them, to call me first if they find a house on short notice that they want to see "right now," and explain that I get paid on commission so it's very important to me that they contact me and not call the agent on the sign. I also explain that if they are unsatisfied with my services, please let me know and we can part ways. 

It hasn't been an issue yet. Someday, maybe it will. I used to insist on an RA at the very first meeting, but at that point the trust level is usually low because of the preconceptions many people have about agents. Now they don't trust me and think I am pushy. Now I use the soft-sell approach. I am not pushy, nor am I a push-over. I project confidence and set expectation levels with a high level of communication.

Of course, there are some clients who are not truthful and will sell you out to save a point, but I haven't had to deal with many of those.

Bryant,

Agree with you totally!  The perceived hardest thing to do is to ask for the commitment upfront but in reality it is the easiest.  If they so no then you won't lose the most valuable thing we have and that is time.  Much better than spending time, money and effort while the whole time wondering about the loyalty of the buyers.

Mike

Many agents are toting potential buyers around and don't even have a pre-qual letter for them, let alone a buyer's agency contract. 

Linda Metallo, Re/max Impact, Lockport, Il.

I run into this type of thing all the time working here at RECR. I continually have agents call me saying they cant convert our clients. And, then I call the client and they say things like, "I never talked with (name of agent)!! He never called."....

There is no "magic pill"....If you suck, you suck.

Buyer Agency is mandatory here so it is less of a problem. Still many agents get it signed when preparing an offer, you need to get one signed before you work for them or at least early on. This drastically reduces the buyer's shopping realtors while they work with them. the key is having a value proposition for them and they will gladly sign.

Broker Bryant - excellent post. We started out taking the approach of not wanting to "tie the buyer up" with a buyer/broker agreement. After many tanks of gasoline and days with buyers who weren't serious, we have gained some common sense. If you don't treat yourself as a professional, how can you expect buyers to?

Buyers don't get in the car without a consultation and having them sign a Single Party Broker agreement, whihc is what we have in ou state. FYI, the contract is required before you ever right a contract. it starts when you want to give them advice. It is state law, but it gets violated all the time. 

I noticed not one person made comment about my reply!  My feelings are not hurt but it kind of makes me wonder what your presentation may be like.. Is it anywhere close to what I said?  Well being that I just had another REALTOR fired today (I'M SERIOUS), leaves me with another testimonial about the lack of salesmanship and boy do I hate having this conversation with the referring agent (Your client likes me but thinks you suck).  I will get to him (I dread these calls) after this post but really people, how many of you are sitting down and going over with a sincere caring voice, STEP BY STEP of what the requirements and expectations are before sending your client to a Loan Officer and/ or showing them homes?  I know we all like to think of ourselves better than the cat's meow but I am seeing too much of this firing stuff going on. There is a pattern to this and if you are incorparating sales scripts that inform and educate your buyers, a BBA would only be a natural progression.  The truth is, most do not have the confidence in their sales skills in order to have confidence to present the BBA.  

I compare what I am talking about to asking for their credit card before knowing what they want and need.  If someone was to treat you that way, would you buy from him/ her or better would you even come close to signing any type of agreement?

Ted-  Just so you don't feel slighted :)

We tend to think of ourselves as consultants and not salespeople. 

The first thing we do when we meet a potential buyer is to schedule a consultation that takes about an hour.  It is an education for the buyer and the agent alike to find out the wants and needs of the buyer and to make sure that the buyer wants to work with us and if we want to work with the buyer.

We ask very probing questions, go three deep and find out why???  Find out their needs and desires and to really make sure we know why. Our consultation comes from curiosity.

At the end of the consultation, we ask them to sign a buyer loyalty agreement that explains what we will do for them and what we expect from them.  If they agree, THEN we work on making sure that they get approved for a mortgage if need be. 

Our unique value proposition is that we can save them 40 hours of time by taking an hour up front, the result is that we typically only need to show them 5 to 7 houses before they see the one that they want and need.  Even in a buyers market, the best houses with the best prices go fast, we only show the homes that meet their exact specifications and the ones that they can afford.  Our buyers tend to get the good ones because we don't waste time showing homes that don't meet their needs.  We rarely "get fired" by our buyers. 

Step one: Buyer consultation and loyalty agreement signed

Step two: Get them in front of the lender

Step three: show them homes

Step four: contract to close!!

Jeff!  Thank you for making me feel better! That saved me money in avoiding to have to go see my therapist..  LOL!!  I am glad you are doing it. Unfortunately not enough of us are.. In fact this post motivated me to write about it (http://activerain.com/blogsview/1259721/hi-mr-homebuyer-no-i-won-t-help-you-)

Bryant - I would have to agree with you on this issue.  However, I would think that if a buyer was satisfied with what you were doing for them, and how you were working with them, they wouldn't stray whether you had a buyer/broker agreement or not.  Just sayin'.

If you are only working listings, that is a completely different thing.

BB: Great tips for newbie agents who are working with buyers. Not sure why anyone would say that buyer's 'suck' . . . but then there are bloggers out there who call people 'idiots', too. I'd say that it is a good idea to think about the big picture, as you suggest when recommending the Buyer's Broker Agreement. 

totally agree. Its up to us to not just sell them on a property but sell them on us as their realtor, and if we don't do that its only our fault.