Why do you need to sign buyers agreement? If you are an agent, you know the answer, but if you are a consumer?
The very first thing an agent presents you with, is Agency Disclosure. This is NOT a contract, but reading and signing of this form is required by law. But, later on, do you, as a consumer, NEED to sign a contract to be represented by a buyer's agent?
If I started to recite examples taken out of real estate industry, you'd think I'm touting my own horn and just trying to protect my commission. Well, my commission is my part of the deal, but what's in this agreement for you?
Let's take a look at ANOTHER industry. Here's a true story I am going to offer for your consideration.
My husband is a musician, he has been performing all over New England with his band for 10 years now. Weddings, corporate events, Funerals, Bar Mizvas, Christmas Eve and Thanksgiving Formal Dinners... They are Berklee grads, and were playing music since age 5. They have expensive music instruments and all necessary equipment. Is that reason enough to charge more than other bands do? Actually, only part of it. Another important reason is, that they do what they promised to do, on the day service was requested, and on specified time. There is a contract in place, with all details.
Recently, prospective client contacted them for services, but decided to book someone else. The DAY BEFORE scheduled performance, this *other* band cancelled on them. Reason? Now, in most cases, when the band cancels, they say something like "our violinist [guitarist, base player, pianist...] just broke his arm [finger elbow, anything], we are very sorry". What it means is actually they found a better paying gig.
In that particular case, musicians didn't even bother to cook up a story about medical or whatever reason. They told the truth: "you know, our friend Mr Happyguy, is throwing a great party in a Happytown, and we'd better go there than play at your event. Thanks!"
Clients were speechless - I guess - and called my husband again. (DAY BEFORE the scheduled performance, if I may repeat). Their band already had a gig on that day, but luckily, it was earlier, and both locations were close to each other, within an hour of driving. Miraculously, it worked out. (Some of their gigs are actually booked a year and a half in advance, especially in high season).
Now, real estate is different - of course. But what if you don't have a contract with your agent, and this person gets to list a mansion and negotiates an enormous commission for himself? Will s/he be still on your case with enough zeal? And this is not to say it's a "bad" agent. It's about duties s/he owes you. I'm pretty sure these other musicians would have played well - if they SHOWED UP.
You are hiring a person to help you in a very important and financially involved transaction. Wouldn't you want an employment agreement?
Wouldn't you want to know what services does this agent offer? Basically, aside from asking you how many bedrooms / bathrooms you need and showing you houses, is there anything else this agent provides? Explaining you total purchasing costs BEFORE WRITING AN OFFER? Telling you EXACT NUMBER you need to come to closing with? Any after sale help (for example, explaining how often to check our heating system, and sending out reminders) Anything else? Maybe you have your own expectations you'd like to put in writing? It is your chance to find out if that agent is a good fit.
My husband has a basic contract that covers all usual specifics and works in most cases. However, he is always open to suggestions from clients. His standard contract is about a page long. He was once working with a client, who added 4 more FULL PAGES to the contract. Please keep in mind, this was a client HIRING A MUSICIAN to perform at a one time event. Isn't purchasing a home a more important event, that can only benefit from a contract?
I'm just asking.
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