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Buyer Broker Agreements

By
Real Estate Agent with Realty ONE Group CalBRE# 01245463

I am curious as to how many agents are using Buyer Broker Agreements. For those of you who don't know, these are in a sense the equivalent of a Listing Agreement except it is for the Buyer instead of the Seller.

 Here in California, I only work with Buyers that I have under contract (Buyer broker). if not, I don't want to waste my time since they probably wouldn't end up purchasing with me anyway.

How do you feel about it? Share your thoughts, examples, etc. Thanks!

Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Coldwell Banker Realty
Now this is a really excellent and informative post!  I'm grateful you took the time to detail the issue and at least one potential solution.  Thanks for the post!
Nov 29, 2006 05:53 PM
Keith Jeppson - Salt Lake City Real Estate
Everest Realty Group - Holladay, UT
I addressed this in a post Did you bring your checkbook? .  I would not work with a buyer past the first showing without a BB agreement.  It's a waste of time.
Nov 29, 2006 07:00 PM
Rich Kruse
Gryphon USA, Ltd. - Columbus, OH

I woke up thinking about this very issue this morning.  Over the past 2 days I have shown an out of town client 7 commerical locations for his business to lease.  I gave him the Exclusive Right to Represent Agreement and he read through it.  We were on our way to the first appointment and the agreement got tossed aside to look at property.  It is still not signed.

He left town without finding what he was looking for and wants to come back in a few weeks.

My decision here is that I have spent enough time on this without any committment from the prospect.  Frankly, I would not have gone this far, except it was a referral from my attorney who I do a lot of other business with.  I will write the past time off as a favor.  Future time is business.

Nov 29, 2006 08:51 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I normally just work within my SOI but if I get other leads I do expect them to sign an exclusive right...

In the last week, I did get burned by someone I know who I worked intensely with and he went and had someone else write the contract.

No more trusting the SOI anymore!

Nov 29, 2006 11:46 PM
Leigh Brown
Leigh Brown & Associates, RE/MAX Executive - Charlotte, NC
CEO, Dream Maker - Charlotte, NC
they have to sign it after the first meeting-but most assuredly before we get in the car.  otherwise i question their motives and motivations.
Nov 30, 2006 12:11 AM
Bob Pavey
RE/MAX Hometown - Aventura, FL
CRS
Patrick I know so many agents using them and know I should be I have been told for over two years to use them each and every time
Nov 30, 2006 12:22 AM