I have once worked with a buyer who wouldn't sign my Buyer Representation Agreement, to my regret. They wasted my time driving all over town looking at properties and in the end decided to stay where they were.

Since then I have had my Buyer Representation Agreements signed everytime. Getting it signed initially was challenging. And the reason was that I had no compelling reasons to give the buyer as to why they should sign it. But that has changed and here are the methods I use to get that agreement signed every time:

1) The first document we show the client is the Agency Disclosure. I refer to it for my cleints as the "Miranda Rights" of Real Estate. This gets them to feel comfortable since I explain that it is not a contract just a legally mandated disclosure of their rights as consumers under the Law of Agency. One of the key elements of the disclosure is the requirement to obey the clients lawful commands. I point that out

2) I then bring out the Representation agreement and specify that one of the client's lawful commands could be to pick up the dry cleaning, get the car washed, and massage their feet. Since this is out of the scope of my job description I "REQUIRE" my clients to sign a "REAL ESTATE" Buyer Representation Agreement which narrows the scope of my obligation to you "THE CLIENT" to matters related to Real Estate like Preparing CMAs, Showing Properties, writing contracts, Negotiating, etc.

With this approach I have NEVER once found a client unwilling to sign. I take the opportunity to explain that I offer a no obligation cancellation clause with 72 hours written notice. Naturally I include procuring clause verbage in case they try to pull a fast one. But I let them know that the benefits of the agreement are to define my responsibilites and HOLD ME ACCOUNTABLE for performance, give them a written and exacting definition of their financial obligations, and legal protections for both of us.

Knowing what you are selling is critical to sales success and that is not limited to homes. You need to know the contracts too.

The result? My average commission for 2007 YTD is 3.41%

GET IT SIGNED! :)

Posted by Todd Amelio, (Silicon Valley) GRI, CRS, ABR.. on 11/08/2007 02:14 PM

Comments (3)

abr, crs, gri, buyer representation

3 Comments on How to get the Buyer Representation Agreement Signed...and WHY!

Great technique. I have learned the hard was TWICE to get it signed. I worked with clients over the phone and online for MANY months prior to their arrival. Once here I drove them here there and everywhere else. Since I thought we were WORKING together, I didn't bother with the contract. One client got snatched by another agent (when they drove by after hours and sign called off a home they passed) and the other was convinced not to use me by a builder, and he would give them money off the house!

11/08/2007 02:29 PM

by Paula Smith-St George Utah Real Estate (Unisun Realty St. George)

Awesome Todd:

I have been famous for not getting a Buyer Agency or Transaction Brokerage Agreement signed...and lately it has been to my own hurt. With the internet and everyone shopping info from 3 or 4 broker sites, it just makes sense to lock into an agreement when you start showing property an to explain why. As a matter of fact, here in Colorado Springs, some of the Listing Brokerages ask, "How are you representing?" when you call to set the showing. I can easily tell my clients that I have to be designated by them to show property in some capacity in the event they would choose to offer...Good Post!

11/08/2007 02:42 PM

by Lania DeMers, Broker Rocky Mountain Realty Co. (Rocky Mountain Realty Co.)

Thank you both. i actually do training for my own broker and I have decided to share my education and experience because I want ALL agents to be the best they can be. This will have a long lasting impact on our industry as a whole. I will be posting more tips on exactly what verbage I use, how do answer questions and deal with objections, and how to set up a commission schedule for various services that your clients will happily sign. Subscribe to my blog to stay tuned.

11/08/2007 02:49 PM

by Todd Amelio, (Silicon Valley) GRI, CRS, ABR.. (Intero Real Estate Services)

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