Why do you require a Residential Buyer's Representation Agreement to be signed before you show me property?
Unfortunately, a few bad apples spoil it for the whole bunch. Both buyers and agents have been burned by each other. Residential Buyer Representation Agreement (RBRA) spells out the expectations for both the buyer and the agent. Basically, what it boils down to is LOYALTY.
Here's just three of MANY things that frequently happen to real estate agents selling Waterfront Homes For Sale on Lake Livingston.
Buyer from Houston calls about waterfront homes. They are not working with anyone and want to look for lake front homes. We take them all over the lake (which is located in FOUR counties). Spend much time, effort, GAS, etc. and then they go back to Houston and write it with their cousin who is a part time agent and unfamiliar with the Lake Livingston area. All that work for ZERO compensation. Ouch.- Buyer calls about a gated subdivision. We meet with them and show them property in the subdivision. They go and purchase property from a FSBO that had property listed on Craig's List. They just wanted through the gate to check out the subdivision. They never had any intention of purchasing property from us. Again -- Mucho work - Compensation, NADA!
- Agent has been showing buyer for the past three weekends each county on Lake Livingston. They only have 1 county left to cover. Agents family member dies and they have to attend a funeral that Saturday, so they move the appointment to Sunday. Buyer decides to just DRIVE AROUND that Saturday just for fun. Buyer see's something they like, calls the listing agent who tells them that they are getting a contract on the house from another agent TODAY -- so if they want to see it and make an offer on it, they have to do it RIGHT THEN. They do. The agent in mourning for their family member is now also in mourning over the loss of their buyer. Once More -- A crazy amount of work for ZILCH!
Here are just two of MANY things that frequently happen to buyers who do not have a buyer's reprensation agreement.
- Buyers are shown only the properties that that particular agent wants to show them, not necessairly the ones that best suit the buyer's needs.
- Buyers tell the agent information about themselves that should not be disclosed, and that information is passed on to the seller.
Buyer Reprensation Agreements spell out that the agent MUST put the needs of their buyer first. This means they must show them ALL homes that suit their buyer's needs. This includes any For Sale By Owner (FSBO) that the agent may know about.
The RBRA covers the amount of commission that the BUYER will pay THEIR AGENT if the seller has not agreed in their listing to compensate the selling agent. For MOST properties that you see on MLS the seller and their agent have agreed to compensate the listing agent. A FSBO may or may not agree to pay commission. This part protects the agent from buyers who may otherwise be tempted to be disloyal to their agent.
I have had buyers specifically ask NOT to see FSBO properties because they did not want to have to pay a commission. I noted this in the RBRA so that it was clear that I was instructed not to show the buyer any FSBO properties.
As far as confidential information is concerned, if you are looking with an agent that shows you one of their company listings and you DO NOT have a RBRA signed, they are REQUIRED to pass on your confidential information on to that seller. If you have a RBRA signed, they are not allowed to.
Many buyers mistakingly think, HEY, I KNOW. I'm not going to share any confidential information! Then they tell the agent what they do for a living, why they are looking for a home, how soon they have to move, how much the LOVE the property, etc. You wouldn't believe how the most innocent thing can be used against you in negotiation. IE: We've been looking at waterfront homes over the winter and we KNOW this one is the most beautiful one, even OUTSIDE of its price range. (Why thank you!!)
If you are serious about buyng propery on Lake Livigston, there is no reason you wouldn't hire someone who knows the area, understands your needs, and is looking out for your best interest. Just caling around and talking to anyone that answers the phone is NOT in your best interest.
I'm Joni Staples, and I invite you to my office to go over the Buyer's Representation Agreement in detail. You can interview me, to make sure that you are comfortable with my knowledge of Lake Livingston. Then we can both sign the RBRA, get you pre-approved, and get to work finding that PERFECT Lake Livingston Waterfront Home FOR YOU! Regardless of WHO has it listed! Call me at (936) 650-9017, and let's get started TODAY!
Why do you require a Residential Buyer's Reprensentation Agreement to be signed before you show me property?
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