Why does every real estate agent want me to sign a contract before we look at houses? Buyer's Brokerage in Georgia

I guess buyers agency is different in every state, but this post is helpful.  I just completed my ABR and am waiting for my designation.  This will help me fine tune my buyers presentation!  Thanks!

Richard.. In Connecticut this is also mandated.  I put the potential buyer in my shoes. I let them know what the agreement is all about.  Next, I explain to them that would they jeopardize their livelyhood and family, and pay a fine for a stranger?  For this is the postition they are puting me in.  I try turning the tables for the buyer to have empathy for the realtor... it is amazing when you put it this way they understand better.

Glad here in florida we are automatically Transactional brokers and do not have to sign anything. Right now we do just for our files but it's not mandatory and nor is buyers agreement.

Richard - a very good point. In Arizona, the state demands agents have the Agency discussion and have the Agency disclosure declaration signed before we talk about anything else. The Buyer Broker Agreement only has to be signed before an offer is presented. So many agents don't want to scare off the buyer until that point.

Personally I have the employment agreement signed at the same time as the agency doc. It's all a choice of how much time one is willing to gamble away or give away for free. I use the analogy of asking the client to imagine that their boss came to them on Friday and asked them to work the weekend for free. I then ask how they would feel about it.  Usually they sign.

I recently took a class and the instructor suggested getting the Buyers Agency Agreement at least signed for the day that you are taking them out showing property, that way you are both protected and you represent them as your client and their best interest is protected.

I rarely use the agreement in residential transactions.  Commercial transactions are another story.  In recent months I have heard very good arguments to do so.  I am interested in what other agents have to say.  Great post!

In Georgia a buyers agency agreement is not required. Yes, a contract is required to have agency, however, we are not required to be a buyers agent, we can be a "transaction broker". (Unless something has changed in the last month or so that I am not aware of).

We do have to disclose, at some poorly defined point in the relationship, what are roles are under the various types of agency. Yes, that disclosure has to be signed but is not a contract.

I try to inform customers, as early as I can regarding this, and do point out the benefits, risks and responsibilities, to both myself and them, of each type. To tell the customers that they have to have that agency agreement to buy might be breaking the law, unless you state that it is your policy not to represent buyers without an agency agreement.

Thanks for reminding me to include that it was buyers who demanded some type of agency buyers representation.

As for hiring a contractor, a bid, or a proposal, is entirely different than a contract for those same services. Buyers should understand your terms/fees/services/etc. before an agency agreement is placed in front of them.

But hey, I haven't been in the business that long, so what do I know?

I will show someone a property if they call from the sign or an ad and we make an appointment to meet at the property. But, we do not look at any other properties nor do they get in my car without a signed agreement.

Richard, again, a very well presented post of yours and a fresh approach for buyers to understand why to sign the agency agreement. I think the buyer like to hold out as long as possible. It seems to go hand in hand with wanting to, of course, pay the lowest price for the home and also feeling like they are in control, and they don't realize that maybe they actually have more control over both with an agency agreement.

My buyer agent used to be intimidated by getting buyers to sign...as soon as I made it Amandatory to use them, she hasn't had any issues since. It's when it's an option that it is easy to avoid it. 

I hear every argrument imaginable about why not to use them from "I don't need a piece of paper to prove loyalty" to "It's hard to get them signed since the competition doesn't do it"...

That's horse hockey!  When presented properly, they sign every time.

I agree with Amanda.  If it's the only way you work, they will sign.  If they don't, they have their own Agenda.  That agenda is usually wanting a free ride. 

This is an excellent post.  I am struggling with the buyer broker agreement, love the concept, hate the buyer objections. Lot so great points here, thanks for sharing I am going to share this post with my teammates!  Thanks!

Richard:  Great explanation of the Buyer Brokerage agreement and why it's necessary.