Home : Blogs : Central Oregon Real Estate | Broker Thesa Chambers, Licensed in Oregon : Central Oregon Real Estate Information

Buyer Broker Agreements | They Are About The Buyer!

Why is it so hard to ask for a Buyer Broker Agreement? Many of us struggle with this issue everyday. We know it is in our best interest and helps the buyer understand our loyalty to them.

I have reflected on this for years, why is it so awkward? Why do even some of the biggest producers in our Central Oregon Real Estate industry not use them? I have come up with a couple conclusions and by analyzing them I am much more comfortable in asking the buyer to sign.

When we started out in the Real Estate business we had mind set that we want to be the best we can we want to provide an exceptional service and experience. We put our client's needs first; we tried to see things through their eyes. The Buyer Broker Agreement at first glace is about protecting us. It seems that it can be considered all about the money. When we start putting the commissions before the client we have failed in putting our client's needs first.

Is it really about the commission? I do not think so. Our Buyer Broker Agreement allows for either party to terminate the contract with a simple letter, email or fax. The buyer or I can terminate our relationship at any given time.

The Buyer Broker Agreement is used to outline what my services are to my buyer. It tells them, how I will watch for properties that suit their needs both on the MLS and in person. It outlines how we communicate and what my policy is for out of state buyers and all the other services that are provided to a buyer. The agreement covers my services from the start of the relationship to the close of escrow.

It draws some specific lines as to what the buyer should and can expect from me, it also lets them know what their responsibility is to the relationship and they buying process.

Many states do not recognize a client relationship until an agency disclosure is signed. If you do not have an agency disclosure until an offer is written do you really have a relationship? As we know there are issues of what is implied and assumed to the client and customer, so why not just set it straight from the start.

Why do we think we are not worthy of an agreement that states, I work for you and you are loyal to me? It is an easy task once you start becoming accustomed to it. When I sit down with a buyer for the first time, I have a buyers presentation, it covers my responsibilities, services and areas of communication are discussed, this takes maybe 15 minutes, at the conclusion, I ask them "are there any other services you require of me?" and they generally say no. I then say "Great, then since we both understand what our roles are in this exciting time, I have an agreement I would like for us to sign, it clearly states that I understand your needs, that we have discussed them, and it is my job to do my best to fulfill my duties to you, and you in return will be loyal to me. Now, this is a contract, but I want you to know that at anytime, you feel I am not living up to your expectations all you need to do is send me an email, a fax or a letter telling me you want to terminate the relationship and you will be released from the contract." I show them where that is in the contract.

Now it is all about my client and not about me. I hope each of you with the market changing to a buyers market can re-visit this document and put it to work for you.

________________________________________________________________________________________________________
Thesa Chambers • Broker • RE/MAX Sunset Realty
541-771-7064 Cell • 541-536-0117 Office • 888-868-2050 Toll Free
Mailing Address • PO Box 3510, La Pine, OR 97739

Posted by Central Oregon Real Estate | Broker Thesa Chambers, Licensed in Oregon on 04/30/2007 12:06 PM

Comments (44)

buyer broker agreement, service

44 Comments on Buyer Broker Agreements | They Are About The Buyer!

APR

2007

That is the problem... It is all about us and the first time you meet prospects some may be reluctant to get "roped" into a contract with someone they do not know.... I have had the rebuttal that since it is so easy to terminate why bother, one guy even got on the phone to his Manhattan attorney who advised him not to sign it.

Nice approach Thesa. Many buyers are so concerned that they'll get locked into a single agent and the agent just won't produce. Helping them overcome that concern is where I focus my efforts.

Thesa:

You are absolutely right. I have been avoiding use of it, and your perspective is excellent.

I wrote a long blog about this. Exclusive Buyer Agency Contracts. Don't Sign Them... Yet.

Love to get your take on it.

Forgot to say that my Manhattan Buyer did sign before we left the office. What I did was scratched out the section dealing with commission and told him to pay me a dollar now. All worked out and he did spend over a million on a house.

Dan - I use it because it tells my buyers exactly what I do. It is more than finding a home, most of my buyers are from out of the area. So, if they do not write while they are here, which only about 50% do, then they are depending on me to go take our own photos, create visual tours, draw up floor plans for a better idea of the flow of the home and so on. I know I work in a different market than most, and I know I go way beyond what most agents do. So, I do my best to make sure my buyers are aware of what they get with me. I have never had a buyer leave me once this is signed, and yes I have had a couple that refuse to sign it due to the commission part... and I like you, am willing to cross that out, it is about my service to them and what they can expect.

Frank, I read your blog and think that we just see things differently. I have signed them, and used them to fire agents. I think that they allow us to be upfront about how we are paid, they allow the buyer to know we work hard and that they are the reason we are here. I think as an agent that does not suck - it is vital that I put every effort into my clients that I can.

Most of my buyers do not want me to work for free - and I don't - but to each their own, that is the glory of being an independent contractor or Broker Owner - you decide how you want to conduct your business - it is not a requirement that the buyer sign. I will work for them if they choose not to... but I can tell you and I tell them that the ones that do, I am willing to work a lot harder for.

Keith - thank you, it works for me and if it in anyway helps someone else I am happy

Joan - create a buyers presentation, it will help you, I just sat down and thought what do I do for a buyer, and made it into a presentation. With that I cover the I can help you buy any house. Best of Luck

It's become so much more for me. Safety has become a bigger and bigger issue so I consider getting the buyer /broker agreement AND some ID critical steps before I will show anyone a home. I actually take a photocopy of their license and staple it to my copy of the buyer broker agreement.

Thesa, Very nice post. I was a very strong advocate of the Buyer Broker Agreement when Oregon started emphasizing Buyer and Seller agency.

I used to present the Buyer Broker agreement to the Buyer as my arangement to be paid for my hard work if we encountered a FOR SALE BY OWNER property that was just right for them. I would imediately follow that with the question " You do want me looking for ALL THE BEST PROPERTIES dont you?" It was easier to deal with from that perspective. I also took great care in speaking to them about Agency and my fees and each of our abilities in cancelling or terminating the contract.

I never ever encountered a single person that would not sign the contract.

Today where more an more clients are coming to us via the Internet, and there is a lot of news media hype ( a lot of it valid ) about protecting your identity and the consumers wish to maintain their anonymity it is a little tougher to get the consumer to start signing contracts before they have seen or found a home. Many Buyers feel a need to keep their options open so to speak even though it is really not in their best interest.

I keep my Buyers loyal by providing great service and by being very candid and straight forward.

Great idea Robert - I often forget to do this - adding it as a step would be a great way to protect myself thanks

Herb - I get what you are saying - and I only ask for this when we sit down - most of the time this is after my job is well underway and they have a good idea of how hard I do work for them. Thanks for your comments - would love to do lunch or something next time I am in Portland.

I don't see what the big deal is. i do buyer agency all the time and it works fine. It's the approach the REALTOR takes to explain it. I liken it to any relationship, If you want out at anytime, just tell me and I'll rip up the contract. Whay would I want to stay with someone who doesn't want me as their REALTOR.

Patricia Aulson/PorttsmouthNH,/ME/MA

I like to use the buyer broker agreement because it does educate the buyer, helps to remind them that , yes, I am working for them, and it seems to make the relationship more "official". It also is a good way to guage the seriousness of the buyer.

Thesa : You call me anytime. Perhaps we can hook up with Valerie at the same time?

Thesa: Never used it....I figure if they don't want to work with me fine...I can find out in the first "excursion" if we click or not and move on. (I think we need something for buyer/seller code of ethics though...)

It's all about educating them. Great blog!!

Thesa- It is not used in my area so trying to get a potential client to sign one around here is very tough. Personally I would like to see them required by states just like a signed listing is required.. it would solve a lot of agency questions..

Thesa my friend, I am learning more and more through Active Rain that there sure a lot of differences in the way we sell real estate and the different problems that arise in different parts of the state. I have never had a problem with the Buyer Representation Agreement and use it all the time. I think it makes a huge difference how things are explained to our clients. I hope all is well.

Excellent post Thesa! I always tell my buyer clients that there isn't a listing agent in the world who wouldn't insist upon an exclusive right to sell (at least in my neck in the woods). How can they expect me to invest all my time and effort into finding them the perfect home without recognizing that I should be compensated for my efforts? Loyalty is a two way street, in my opinion.

Congrats on being Featured... I can't say if your market is different than most, we have buyer brokerage and similar difficulties here. Problem is not all agent abide by the rule, ( I still have trouble considering it the law ) so if a buyer doesn't feel comfortable signing the first time out they might go to someone else in the future. Seems like many times new agents are so focused on the signature that they loose the prospect.

Good Post. I think they are important but what if your buyer breaches the contract and uses another agent or goes through a builder. How many of us will actually take legal action? Is it worth the fight. Sometimes yes, sometimes no.

I agree with everything you have to say. I have been working exclusively with buyers for 9 years and always work with a contract. It is only on rare occasions that someone does not want to sign. I think a lot of the problem is that agents really don't have the skills to be a buyer's broker. It is important not to work with buyers unless and until you know how to be an consultant and an advocate for the buyer. I often get calls from my colleagues to coach and mentor them. It is important that you have confidence in what you are doing, then it is easy to get propects to sign and agreement.

Thesa, A BBA is very important. Why wouldn't a buyer sign one? It's as much for their protection as it is the agents. The issue is REALTORS(R) aren't presenting it properly. They don't believe in them and automatically think the buyer will have an issue signing one. Practice, practice, practice. You have to build trust and value before you can ask for a signature, no different than taking a listing. A BBA is the blueprint for the relationship.

Very good post and explanation Thesa.

Thesa,

I agree with what you are saying and I am guilty of it as well.

I have gotten some,I have asked for some and not gotten them signed and I get a little uncomfortable with them...its a good practice but does it really fully protect us?

Usually the buyers that buye from me were just plain out loyal with nothing signed but I definitely can see asking for one.

I don't know maybe I am just lucky.

In my opinion ,that unless you get the buyers undivided attention to read it some think they are signing their life a way.

Nice post.

Hi Thesa,

The way you present the agreement is perfect! Thanks for sharing. I will be using your technique the next time I sit down with a buyer.

Regards...Jay

I have to say that I do not use them and will not use them. My clients are free to use whom ever they chose in there purchase. If I am doing my job right 99.9% of the time my clients will be my clients through the whole process. I guess this is backwards thinking or being nieve but I try to think that if I go what I need to do that most buyers will stick with me. And most do. It is very unusual that I lose a client.

Thesa - I was asked by my Title Rep if I ever use Buyers Broker Agreements and my reply to him was: "Only with Family and friends". All kidding aside, I do like how you use this to outline the expectations and value that you bring to your client. It really shows professionalism in what we do for our clients.

Patricia - exactly and what I really like about them is everyone knows what to expect. I think they save a lot of frustration for you and the buyer.

Valerie - It does seem more official - and like you care enough to work for them.

Herb - I am sure we could do that it would be grand.

Sally - sometimes your gut is not enough, with a buyer broker agreement you can draw out exactly what they should expect from you.

Kaye- you are so right. Most agents here do not use them, my Principal Broker encourages them but none of our agents do, I find that I am taken much more seriously by using them.

George - thank you my friend - been to the bar lately? The way they are presented does make a huge difference.

Stan - thank you glad to see we are on the same page

Dan - thank you! If they are not willing to sign this are they really going to buy a property? I do not take a floor walk in client and say... here sign this or hit the road... lmao - although there are a few I would like to. I do however, if we are heading out to see multiple properties, pull a buyer presentation, explain what my role is and ask if this sounds like the service they are looking for, they either say yes or they say they want something more or less formal. If they give me the we are just looking right now to see what we can afford, since it is a resort it can be crazy sometimes, I give them the presentation, which has the buyer broker agreement - I explain that to them, and off we go, I check in with them - but on a limited amount - when I check in I ask if they are ready to take the next step to owning a Central Oregon Home - and if so, please email or fax me the agreement and I will move them to my A list - I do not spend much time with servicing a client that is not an A buyer - you are not an A buyer unless we agree to what terms we are working under - so if you are happy as a B buyer be a B buyer - but my A buyers do get first class treatment - they are called more, I will drive miles upon miles to take photos and put together virtual tours on listings that are not mine and so on... man I should have just written a blog here... or posted this to pointless blogs.

Craig - If my buyer breaches I generally walk away - I have never had a buyer leave me and buy with someone else or a FSBO without me. I look at all FSBOs I can find that meet my clients needs and generally am able to get the seller to pay me a commission -

Joan - good for you, we are the experts this is one more way to let them know we are the experts.

Bryant- I am not sure why a buyer would not sign expect they do say if you buy a property I will get a minimum of 3% and occasionally there are properties that are at 2.5% - so I have to explain how commission works sometimes... but it is generally pretty simple - I guess I can stop I am preaching to the choir here uh?

Neal - I do not get them to protect my commission as much as I get them to set straight right from the beginning that I am a professional and I do not work for free. It is amazing how many people think the resort pays us an hourly wage.

Jay - thank you - hope it helps you

Jeff - I understand your thoughts and this was mine too - until I had a buyer tell me they were disappointed in my performance and wanted to have a discrete talk with my broker - she was ticked off because she lost a condo that we wrote an offer on - at like $30,000 under list price and the sellers countered her at their break even point - she was insulted that they did not take her offer and that was my fault. She and her mother have been involved in Real Estate - and so they felt I should have strong armed her. By doing a Buyer Broker agreement - they know what my job is and what their job is. That is what I find to be the best benefit of the BBA - not the commission - the commission is pointless unless you have a successful relationship - no relationship no commission.

Moe - that is pretty funny - I would think friends and family would be the most important at least my family it would be :o)

Thesa...

Maybe I've been in this business too long. My only answer is...

"Ask and you shall receive". I know that's lame for those who are new in the business.

I have never had this problem so I'll go away now :)

TLW...ROAR!

Billie - don't go away - but thanks for the support - that is what I have found too - we ask for the business why not ask for a clear understanding of what we do? I love your comment

Thesa...

No worries. I never go very far :)

TLW...ROAR!

After thought...Maybe some agents don't know what it is they do. LOL.

You know....you have something. I think of it as protection for the agents. I know that it protects the client but I never set out thinking that. What a great way to introduce it.

Good Job Thesa, i agree with you a 100% great posts.

In my state, without a signed Exclusive Buyer Representation Agreement, I can do little more than use a lock box with a customer. I normally explain this and work that way the first time out, but it is very difficult for me to not be helpful with folks I am auditioning to work with.

Thesa, Sounds like we take a similar approach to the buyer broker agreement. You were certainly long winded, must be all the practices from the pointless comments. By the way I just look and you are still one ahead of me and I'm still confused as to the pointless point.

My Cyndi is working on this same issue. It is harder to do so here in Indy.

I love buyer broker agreements. Once I stopped feeling guilty for asking clients to signed them and started to believe in the many good reasons for using them, I was able to turn a corner. I have had two potential clients refuse to sign them. One I chose to work with anyway and the other I let go. The way I see it my time and experience is worth my client's loyalty.

Someone needs to take Thesa's words and make them a required module in real estate classes. Se nailed it! It is about the buyer, and about the relationship. Solves most problems too.

MAY

2007

Great perspective and a well written post. I have rarely had a problem getting a signed agreement. Most buyers, especially the first timers, ask me why would they NOT want to have such an agreement. The analogy with us having a contract with the seller works for me, and is a good way to point out the similarities and the value.

Jeff

Thesa this was great. I love the way you presented it. I don't understand why buyer's would not want representation. I don't usually have trouble getting them signed (until recently with a referral) but hear about buyer's that feel "roped" into contracts all the time.

My opinion is; putting everything in writing makes all the expectations and goals much easier to achieve.

Thesa, I like your take on the whole Buyer Broker Agreement. I felt the same way when I first started in the business. Then I met my current broker who would rather not have his clients sign it. When I asked why he explained to me that if you do a great job for your clients, they should work with you because they want to and not because they're obligated to because of the Buyer Broker Agreement. I haven't used one since. Great post!

OCT

2007

Ah....the big decision....I remember this....but I still feel the same. Only once an agent in our office used one...the client wanted it....lol! (that's spooky)

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?