Buyer Broker Agreements. Don't Leave Home Without Them!!

Bryant, thanks for sharing the link to all your blog posts.  I look forward to reading them.  We don't use BBA too much in my area -- I wish more agents would, then it would become customary practice.  I've been burned so many times by buyers that I've become skeptical. 

I agree that you need to help your clients also understand loyalty works both ways. If you are investing time, money and probably lunches, and they are sincere - then they should have no probem signing a BBA. 

Absolutely!  With the Buyer Broker Agreement, we become a fiduciary agent for they buyer, meaning we have to put their interests first (even above our own).  Of course we will be compensated for it but it does benefit the client.  Well stated!

While I agree with the post, and get a BBA most of the time, I ask myself "Will I *ever* sue someone to enforce the agreement?" I doubt it.

When I owned my own small business, I got entangled in a couple of lawsuits, both as plaintiff and as defendant. Be prepared to spend $10000-$20000 to win, and that's based on 10 years ago. Add a few hundred hours of collecting data for endless rounds of discovery and interrogatories, and you can see that lawsuits are not good business. Except for lawyers.

That said, a BBA will help remind the Buyer that we are business professionals and that we expect our clients to behave accordingly.

Someone who says, "my client would never buy a house behind my back" and has no buyer agency agreement signed really does not have a client. This person can walk into an open house and put down an offer on something at any time.

Is the Buyer Broker Agreement iron-clad? Maybe not.  But it reminds all parties that they need to go through you on every property. Otherwise, you are working for free.

People who think they are too good for BBA are fooling themselves.  I agree, they are more important than ever now and are a great platform from which to discuss agency and what your fiduciary duties to them are.   it also shows you are a true professional who is going to get paid for their work.

It would be good to learn the easy way but Just Doing It. But, many folks don't and learn the hard way.

Bryant fortunately I'm not amongst the agents that like to work for peanuts.  I hear they don't accept peanuts as tender these days.  There is no sense in monkeying around and wasting time.  I definitely agree that it's best to go ahead and put the cards on the table upfront.

Bryant, I totally agree. Don't leave home without one. Serious buyers will see the benefits and will sign one.

BB, that's a great reason.  I recently have been working with someone in a lower range & the LA's are just paying a flat fee just to make it worth someone's while to show it.  Buyers just don't understand that sometimes it's not worth starting the car to drive over to the home let alone PREVIEW.  No way.

I always get a BBA.  I have never had a problem.  It is important to have the buyer sign so they feel the commitment with you as their agent. 

Absulutley be using the buyer broker with every client.  Get the game plan rolled out up front as you say. I like the idea of investors of cheap houses putting in some cash to make it worth the agents while.  That's a smart move for an investor. A win-win.

Buyer brokers are a must, we need to have some kind of commitment on both sides so that we are not working for nothing.

I'm on our local Grievance Committee in Orlando. The #1 thing we look for in a commission arbitration dispute between buyer agents is a buyer broker agreement.  Probably 90% of the time there isn't one.  Then it's just a matter of he said, she said, and ironing out the facts.  If you have a BBA the NAR rules give you major protections on your commission as well as ethically.

In CT - it's the law if we show another agencies listings.  Our buyers expect to sign one(even if it's just for the houses you show them that day) - makes life a little easier for us. 

Im still surprised that some Realtors do not use these forms. If you are putting in the time, you should be sure to cover yourself.

Another feature worthy post using good old common sense.

  BBA really stands for  Broker Bryant Agreement.

Margaret

Hi Bryant's! A BBA is a must. I hat to see a Realtor work so hard showing property, negotiating etc. for nothing. jjay

Bryant~ I carry that paperwork with me everywhere.  I learned really quick really early on to always have it with me and to get it signed early.  I had a couple buy a home from a fellow church member one sunday.  I had shown them homes the week before , they said they were going out of town (changed their plans) I called on monday and they had already written a contract.   ouch