Buyer's Agency and When Do You Pop the Question?

By
Real Estate Agent with Vision Real Estate - Park's Edge Townhomes

Which question you ask?  Of course, "will you allow me to represent you as your Buyer's Agent?"  

Approaching this topic with potential clients seemingly brings more fear to the hearts of agents than any other question.  Homes with leaky roofs or foundations?  No problem!  Real estate having a history of being a meth lab? Piece of Cake!  Listing presentations?  Butter!  But, when it comes to asking someone to sign a Buyer's Agency Agreement? Where do I hide?  

What is it we are so afraid of?  To cut down on the apprehension, ask yourself if you enjoy working for free! Implied agency does not pay in most cases!

If an agent will understand a few simple principles, they can jump this hurdle and get to work.  It is Utah state law that in order for anyone to act as an agent, an agency relationship has to be established.  The agency relationship is not created until the Buyer’s Agency Agreement has been signed. One simple approach is to kindly explain to a potential client you would like to keep everything legal and that entails getting a signed agreement. Additionally, explain that until an agreement is signed, you can only give a small amount of your time to provide direction concerning real estate.

Something that has worked for me is to provide a free hour of consultation.  During that hour, I will answer their questions and help them begin the process of finding a home.  However, until they have a signed an Agency Agreement, I let the potential client know I can provide no further assistance. However, if they sign the agreement they will always receive first class treatment and have my full and undivided attention.  

Once the agreement is signed, it’s a great feeling to know you are in compliance with Utah state law and can now show your client property and provide them the advice and service they deserve.  

If you don’t bother getting a signed Agency Agreement you are hanging yourself out and might be working for free!

For more of my ideas on real estate visit my blog at Park's Edge.

Comments (2)

John Rakoci
Eagle Realty - North Myrtle Beach, SC
North Myrtle Beach Coastal Carolinas

I explain agency at the 1st meeting. If they wish to view and have a pre-approval letter we will view. By the 2nd meeting I know if I want to work with them or they with me. Normally, I have the buyers agreement signed when an offer goes in. It works well for me. I do appreciate the business from those in a hurry to get those agreements signed.

Jun 01, 2011 02:09 PM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Mandy,

I can be pretty forward about it.  And sometimes I think that costs me business.

We are going to get there sooner or later anyway.

Jun 01, 2011 03:36 PM