I am still fairly new to real estate and I have a question....how common are buyer rep agreements? Do most Realtors still use them? I have represented at least a dozen buyers in closed transactions the past year and a half or so (I know... I am pretty inexperienced ;-) ) and I have never once even thought about using one. I ask because I just had an old friend contact me: they are looking for a house, have a buyers rep agreement with a Realtor but are unhappy with him/her. They had no idea I was even here or a Realtor, they just found out and wanted to let me know that if they don't find a house before the agreement runs out, they will let me know so I can help them once the contract expires. Hopefully they will find their dream home and everything will go smoothly for them (no matter who their realtor is!). However, the phone call got me thinking about contracts with buyers. Just wondering if anyone else has input or thoughts about this topic. Hope everyone has a great weekend! TGI(almost)F!!!
it's a good idea to use them. otherwise your buyer clients will bump into an old friend or family member who is a licensed realtor and you will have lost time/money.
I am going to start using them due to a situation I have going on right now. I would love to hear what others say on this topic.
I completely understand that part of it! I guess I just think (hope) that I do such a great job working with my buyers that they wouldn't want to leave me ;-)...if only my glass were as full as I like to see it!!
Jared,
I am sorry to hear that! Hopefully the situation will work out in your favor. Good luck!
Some states require the buyer's rep to be used, so you're going to get some mixed responses. In Texas, it's not "required". I do not use them. If a buyer is going to go elsewhere, that's not a buyer I want to work with anyway, and it's definitely not a buyer I want referrals from.
Even under a buyer's rep, the buyer can still buy a house with another agent. At that point, it becomes about procuring cause. Who started the chain of events that caused the buyer to write an offer on that property and eventually close on it. The agent with the buyers' rep agreement won't have a leg to stand on if they never showed that house.
You can also let your friend know, not as an agent as you can't step on the toes of another agent, but as a friend, that they have other options like posibly letting the other agent know of their situation and asking to be let out of the agreement. Maybe your friend offers $500 for their time, depending on how long they've been working together...
Wow, Donna really gave a great explanation above. I always have them sign one (office requirements) but I don't do it up front like some agents do. I just feel pushy but it has bitten me in the butt before. I hate that! KM
It is a great idea to get it signed, you also need to explain to the customers how they work (the contract that is) and what their responsibilites are as well as yours to them. Buyers jump ship all the time so protect yourself.
Krisin, I agree.. I love Donna's explanation (Thanks Donna!). I think seeming too pushy is my fear, like you said. When do you usually ask for the agreement, after a few showings? I even feel awkward asking them to sign the IBS...LOL..I guess with more experience I will get better!! Thanks
Jeanna, The IBS is easy. Just say something like, "THis is not a contract or an agreement of any kind. It is only a notice for you to know who represents whom in a transaction." Then, briefly point to the 4 items on the right hand side and say, "The most important thing you need to know if that no confidential information can be exchanged without your permission." Then, they'll gladly sign it, as it's only a "notice".
Donna, Thanks again...I think I do say something along those lines but somehow it doesn't come out that smoothly!! I will practice your version in my mirror so it sounds that good coming from me :) The more practice I get the easier it gets!! Have a great weekend!
My question to you would be would you take a listing with out an agreement, why treat a buyer any differently. The agreement spells out what you are going to do for them and how you get compensated. I would not work with a buyer client unless they sign my buyer agency agreement. I have been doing buyer agency since 2000 and I found that buyers do not have an issue with signing an agreement, but do sometimes request changes in it.
Our area requires that we use Buyer's Representation Agreements, so I get them signed as soon as possible. If explained properly, people understand.
As far as your friend not knowing you are in real estate, that's not a good thing. Make sure you have sent out a card/note to everyone you know; family, friends, friends of friends, the hairdresser, the butcher, the candlestick maker; :) ... make sure everyone knows what you do. Send them business cards, or a fridge magnet; or whatever you have, but send them something, so they know and they will use your services. Those dozen buyers or so you've used also need to receive a newsletter, or something, from you, every month, so they can remember to pass on your name to their friends who are looking to buy.
Good luck. :)
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