Buyer agency agreement

By
Real Estate Agent with twin city realty llc
When working with a buyer client do you use a Buyer agency agreement to protect yourself and your buyer?  I was introduced to the buyer agency agreement a few years ago and have used them ever since.  It has saved me a few times.  I have not had any problems getting buyers to sign a six month agreement with me but several agents in my office are afraid to use the agreement.  For those of us out there putting buyers in our cars, spending $3.29 a gallon on gas while driving them around for hours, why would you not protect your investment.  Help me understand so I can help those in my office start using them.

Comments (11)

Stacey Brown
ILM Realty - Colchester, CT
REALTOR
In CT, they are required. I can tell you - it may be a problem for the agent to do a 6 month agreement with the P.I.T.A. client. If the agent and customer are not happy, ask them to do a single day or even a single property agreement. It will save you headaches down the road and helps people to stay feeling comfortable with you.
Mar 25, 2008 03:44 PM
Kent Simpson
Realty One Group Mountain Desert - Tucson, AZ
Real Estate Is About People

As my broker is fond of telling us:  Gotta be employed before you work! 

Mar 25, 2008 03:47 PM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

I think it comes down to confidence.  Some agents aren't confident enough to get them signed.  If you show the customer value its not a problem to get them to sign. 

Mar 25, 2008 03:48 PM
Jeff Kessler
Austin Homes, Realtors www.OwnAustin.com - Austin, TX
Broker,CLHMS,GRI

I always get one signed, even if it is for only one home.  I show them how it protects me and them.

J.

Mar 25, 2008 04:06 PM
Roberta LaRocca
Simply Vegas Real Estate - Las Vegas, NV
REALTOR®, Broker, Salesperson, NV. Lic BS.507
I was hesitant at first but once I started doing it, I found that it is no problem to get buyers to sign.  I have them sign for a year.  If an agent is not confident enough to ask a buyer to sign, then check with your broker and see if you can say that your broker requires it.  Another suggestion, if the buyer is not comfortable signing, tell them that you will only date it for the day that you show them homes.  Then, you are at least covered for the homes that you showed them. 
Mar 25, 2008 04:08 PM
Kevin Teeters
Kevin Teeters Realty LLC - Hickory, NC
Hickory NC Realtors

They are also required in NC. I think if you build a repore with the client and gain their trust, they realize that it's part of the process. I like to give sample copies of all agreements and contracts in advance so they have a chance to read through everything and ask questions.

Mar 25, 2008 04:10 PM
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services
Always -- not one exception in the 11 years I have been representing buyers.  Show them how it protects them -- just think who else will work on a "contingency basis" without any agreement - I can't really think of anyone.
Mar 25, 2008 04:19 PM
David Saks
(retired) - Memphis, TN
Hi Stacy. Nice post and good thought. It's great to have the buyer sign an agency agreement so you can represent the buyer under the laws of agency. When you become the broker for the buyer you become the agent for the buyer, and you now effectively have fiduciary responsibilities to the buyer allowing you to serve and protect their best interests. I think it's great when they become your client this way. 
Mar 25, 2008 04:24 PM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy
BBAs are a much needed contract.  I always make sure that buyers have an "out" if they don't want to work with me, but the framework is such that is protects both of us.  
Mar 25, 2008 04:35 PM
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!
I like that statement from Kent, you have to be employed to work! Thanks Kent, I will add that to my verbage.  I usually tell customers that I am going to be putting a great deal of time in helping them look for their next home and I want them to know I am going to stick with them thru the whole process and I want to know they will be sticking with me for the duration.  So far everyone I have asked has said they were comfortable with me and the way I do business. Go get 'em!
Mar 27, 2008 07:39 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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