But, Why Should I Sign a Buyer Representation Agreement?

By
Real Estate Agent with Re/Max Plus

Imagine this scenario:

contract to signYou're a first-time home buyer. You've been speaking on the phone to a real estate agent, and you set up a time to meet at her office for a buyer consultation. You gather up the printouts of the homes you've been browsing online and drive to the office. The agent greets you in the waiting area with a warm smile and a handshake and leads you to a conference room. She tells you about the home buying process and how she does business, and you discuss what you're looking for in a home.

So far so good, right? Then, she pulls out a frightening-looking form called a Buyer Representation Agreement. By signing the agreement, she tells you you'd be obligated to work with her to purchase your home. No more calling the listing agent directly, impulse buying that home you loved at the open house, knocking on the For Sale by Owner's door, etc. You'd only have one contact in the real estate world.

Wait... what? You think, "Don't only sellers have to sign exclusive agreements with their agent?"

 

Many buyers are understandably concerned when an agent approaches them about signing a Buyer Representation Agreement. Everyone expects to have to sign a contract when selling their home, but signing a contract with your Buyer's Agent is a newer concept in the real estate world.

Think about it this way. What if you weren't guaranteed a paycheck at your current job? Imagine there are several of you doing the same job, and you only get paid if your boss decides to collaborate with you on a project that week. Or, even worse, you complete a project with your boss, and they pay someone else for it anyway. For your work!

How would that make you feel? Would you be motivated to work your hardest, not knowing if you would ever be paid for your efforts? Probably not.

balancing on moneyThat's the situation Buyer's Agents find ourselves in day in and day out. If we don't have a Buyer Representation Agreement with our buyers, they could easily walk into an open house and decide to put in an offer with the listing agent. In that case, we get nothing. Nada. All our hard work is down the tubes.

Most of us have been burned by buyers more times than we'd like to mention. I know I have. When working with buyers without a Buyer Representation Agreement, I often feel like I'm treading on thin ice. I still work hard for my buyers, of course... but I always wonder in the back of my mind if and when that ice will break.

Wouldn't you rather have an agent who can give you their full attention? When I have a  Buyer Representation Agreement with my buyers, I'll move heaven and earth to get them what they need, because I know our relationship is secure. Let's face it, real estate agents need to put food on the table, too!

Not to mention, there are countless benefits to you of becoming an agent's buyer client rather than just her customer. I'll discuss those benefits in my next post.

For now, let's stick to the loyalty thing. Agents ask you to sign a Buyer Representation Agreement because they want your loyalty, not because they're trying to trick you into signing your life away. Personally, I always tell my buyers that if for any reason they're not pleased with my performance and don't want to work with me anymore, we'll cancel the agreement immediately. I don't want to work with anyone who doesn't think I'm doing an exemplary job. I just want to be paid for my hard work with those I do work with.

So, you give loyalty, and you get loyalty in return. No strings attached. Isn't that a good deal for everyone?

 

 

*****

 

I am proud to help buyers in the Greater Rochester, New York area find their dream homes. As a Certified Buyer Representative (CBR), I have the training to help you through each step of the home buying process.

First-time buyer? Contact me for a free first-time home buyer consultation, where I'll walk you through the home buying process!

If you are considering purchasing or selling a home in the Rochester area, don't hesitate to contact me. I pride myself in providing the best possible service for my clients!

When you work with me... Wahl to Wall Logo

Kristen Wahl

 

 

Contact:
Kristen Wahl
Realtor®
Office: (585) 279-8274
Cell: (585) 455-5524
KWahlHomes@gmail.com

 

 

 

Search all Rochester-area homes on the MLS: http://KristenWahl.RochesterHomesNow.com

 

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Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
New York Monroe County Rochester
Groups:
I Love NY
1st Time Buyers
Greater Rochester NY Real Estate Agents and Mortgage Professionals
Advice for Buyers
Tags:
buyers
buyer agency
buyer agency agreements

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Rainmaker
1,282,480
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Good article on Buyer Representation form.  Thanks for sharing.

Oct 25, 2012 02:44 AM #1
Rainmaker
499,322
Daniel J. Brudnok, REALTOR
Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA
SRES, e-PRO,ABR,GREEN,CSP

Hi Kristen,

No signatures no showing......that's it.

If they are truly unsure, then I have them sign it for the day we are out telling them IF you want to work w/me after today and I want to work w/you then we can re-sign another for a longer time.

Oct 25, 2012 02:46 AM #2
Rainmaker
98,062
Kristen Wahl
Re/Max Plus - Rochester, NY
CBR

Edward and Celia, thanks for the comment. I'm glad you enjoyed it.

Dan, wow, you're my hero. I haven't taken it that far, but that's a fantastic idea! Thanks for sharing your imput.

Oct 25, 2012 10:49 AM #3
Rainmaker
654,523
Christine O'Shea
Christine E O'Shea Broker-Associate - Naples, FL

Kristen, Perhaps I should change my way of thinking.  I have found in the past thatbuyers still do not stick to the agreement and feel trapped,

Oct 25, 2012 01:24 PM #4
Rainmaker
98,062
Kristen Wahl
Re/Max Plus - Rochester, NY
CBR

Christine, I'll admit I lost one buyer a couple of years ago because it scared him off... but if he was that unwilling to commit, I'm not so sure he would have stuck with me, anyway! I'm trying to be better about using these.

Oct 26, 2012 12:20 AM #5
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Rainmaker
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Kristen Wahl

CBR
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