Buyer Broker Agreements You Can Choose From in California
Part 2
In Part 1 of Buyer Broker Agreements You Can Choose From in California, I explained the three options that we have to work with Buyers.
BRNN – Non-exclusive Not for compensation. In our local area we call this the “Baby Bear”. It is just a piece of paper between you and the buyer with no holds barred.
BRNE – Non-Exclusive. Where the transaction is spelled out and you are paid your commission if the buyer buys a property that you have shown listed on the agreement. We call this the “Mama Bear”. It has power but not as big as the next but more than the baby.
BRE – Exclusive. Where the buyer buys anything within the dates set on the agreement and you are paid a commission. We call this the “Papa Bear”. This has the power over all.
In Part 2 I will explain the experiences I have with a few buyers and the attempt to work in a buyer broker agreement and the success.
One good and one not so good.
1)
I had a guy call on a property in the Ventura area which for me is 40 minutes away. The price range was decent. I asked all the main questions we would in the process of finding who is who. One is, “are you working with a Realtor”? He says not right now. I said “you hesitated do you have someone in mind”? “We’ll we just want to see this property”. With my discomfort I tried to be as calm and appeasing as possible. He said we have ‘a friend in church who referred me to one of their friends that is an agent but HE IS ON VACATION”. I tried to explain what he just said to me about what and who I represent and that we need to put a buyer broker agreement in play. I said that essentially I will drive up there and show you the house. then you walk away to think about it. you interview another agent and you wind up buying from that agent on a home that I showed you. I said the buyer broker agreement is for me, you and that specific house that I showed you. if you purchase that home I am paid a commission. I am sure you don’t work for free and nor do I. It is a part of our world. He was put-off. He said I don’t like the way this conversation is going so forget it. “All I want to do is see this property”.
Then a few days later I get an email from the lead service that I got this from, that I have a fabulous record with, and when they asked him of his experience I was slaughtered. He said he has never been treated this way and never wants to hear from me again. I told them the real story.
Ultimatley, if I had driven up there and shown the property. Waited a few days to see if he was going to choose my style and approach or the other “church friend” and not had a buyer broker signed for the specific property shown, would it have been a waste of time? My attempt was to protect me. I believe I made the right decision.
2)
The next one was recent. It was on a $4 million dollar property. I felt the need but was afraid to ask. In this price range you have to speak and handle with kit gloves or they will just go to the next guy. The client was so warm when we connected and she was impressed that I got back within in 10 minutes of her click of the button on the internet and the other agent had not. A few hours passed and she was sent an email response, after we had already discussed a day of showings. She wanted immediate results and I gave it to her. She says “Ken, what should I do? I want to work with you but I feel obligated to work with the other agent since I called him first and he has now claimed his availability to show his listing”. “I am uncomfortable”
I indicated that it is her choice who she works with but what have I done for you already, and when did you hear back from the other agent?. She says “I do want to work with you but when we show up, with the appointment that you made, and the other agent knows who I am it will be uncomfortable. I said that I have a way that will protect you and me. “We have a buyer broker agreement that shows all the properties that you and I see on this particular day this way we are working together”. It worked great, she signed, we saw and we are now continuing to find her a home. And it is not the one that she originally called on. The other agent may have only shown her his listing. I was able to show multiple properties that day. AND, she said “I am glad that we connected because I did not like him”
I hear from people, not always agents, that these should be used ALL the time in every buyer representation. I say that you have to pick and choose the opportunity. With all the thousands of real estate agents out there your buyer can just flip a coin and choose one tomorrow. I personally feel that the connection that I make with a client when they see how I handle the process and the services I provide are second to none and they will not go away. if I choose not to use one that is my decision.
I have not been burned, that that I know of, but any day that can change.
Buyer Broker Agreements You Can Choose From in California
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