Is a handshake enough?

Alan, we have three different versions of the Buyer's Agency Agreement... weak to strong.... some agents have them  sign it... I have only done it twice in 20 years... and both times the buyer refused that was my point... I am very good at screening, wetting out the disloyal bunch.... so I do not need to have them sign it... a Handshake is good enough form me, Endre

I generally ask a buyer to sign a facilitator agreement initially...this way I can change the relationship later to a buyer agent if they wish representation, or I can inform the buyer of my seller relationship if they end up choosing to purchase something I have listed (I don't practice dual agency, so would only rep the seller if it is my listing).

In Maine, we are not allowed to give advice to a buyer unless we have a Buyer's Represenation Agreement.  However, asking a buyer to sign an Agreement before you have shown them any property is like asking to get engaged without a first date.

I will do a day of showings.  Then they can coninue with me or not.

Alan May-this is not relating to the Buyers Agency but relates to having someone sign a document before they know or trust you.   In NJ, we have Dual Agency and before we show a property listed by our broker, we are required to disclose and explain the agency relationships.  I won't act as a dual agent without the signature of the buyer on the form.  I explain it is not a contract but want proof I disclosed this information.  I have never had a problem with a buyer signing the form.  Great discussion!

I use it and I think it is all about how you present it to them. Make them understand that you are 100% working in their best interest. Too many agents make buyers feel like they are just another client and want them under contract!

Not required here in Florida and I don't use them.  I build relationships and have only been burned a couple of times.

In NC we are not required to get a signed buyers agency until the offer is tendered but we are required to get a verbal agreement BEFORE any confidential info is shared as to whether the buyer wants representation (Buyer's Agency) or wether they do not want representation - which means I would be a seller's sub-agent.  I have been burned more than a few times by buyers who did not stand by their word or 'handshake' so I get signed Buyer's agency agreements up front.

The first thing I do is ask if they are working with another agent/broker, then if  they've been pre-approved. I'm not wasting my time with "Looky Lous". Then explain the IABS and try to get them to sign it. If they have shown me pre-approval or proof of funds, I will show a couple of houses to get a feel for what they want. I will have them sign a buyer rep agreement, if they want to go further having me represent. 

Required in Connecticut unless its your agencies listing.  But ultimately Agreement is required to show other agencies listings.....  But not getting paid could come into question....

I'm not at agent, but I find the question and the comments so far very interesting!

Alan ~ I was involved in a procuring cause situation and have known other PA agents who had the same thing happen to them. The first thing you're asked is if you have a signed buyer contract, there is no point in going on to step two if you didn't. You take your lumps as a "volunteer". I ask my buyers for it on the first time out since then.

This is great.  Early on, I didn't use the agreement and after spending several months with a couple, they walked into an open house.  The agent did ask if they were working with an agent and they said, "yes" and then the agent asked if they signed an agreement and when they said "no", she sold them the house.  Personally, I would have stopped the moment the couple told me they were working with someone, but not everyone fees KARMA as much as I do. 

So, I now present the agreement very early on.  Sometimes, buyers are hesitant and I simply explain what the purpose of the agreement is.  I will wait a few visits for their comfort level to go up and ask again.  If they flat out refuse after some rapport has been established, I will try and determine if they are nervous or just kicking tires and looking for a tour guide on weekends.  If it's the latter, I will say goodbye and wish them luck.

I have been an ABR (Accredited Buyers Rep) for 20 years.  In my area it is about 50/50.  On first meeting, I explain the difference between Seller Agency and Buyer Agency and I give the buyer an opportunity to go "shopping" with me first before they agree to committing to a loyalty to me ... and I in return, a loyalty to them.  I would say 99% of the time they choose me as their Buyer's Agent.  

I believe in buyer agency and do have my buyers sign the agreement. However, if they don't purchase .. lots of time wasted.  I'd like a retainer

I've seen agents get burned by not having one. The brief time I was an agent I used one. 

When you said, "handshake," it reminded me of the first real estate broker I ever worked for, about 16 years ago. He was 81 years old and was fussing over how long contracts had gotten to be (6 pages in Kentucky at that time). He said in his day, a handshake was all that was needed. Times sure have changed. 

Relationships based on trust sounds fine, but do you really trust STRANGERS?

since some of my clients START as strangers, I DO use an EBA. In fact, when I personally shop, in an area I dont cover, I look for a Realtor that does use them also, and work ONLY with an agent that will use them.

I have found that my clients who sign them typically 90 percent of them buy within 6 months. To keep my clients at ease about signing them, I show thenm that my PARENTS, daughter, and brother have signed them. I of course trust them.

Once they signed, it makes it easy to tell clients that this is how I work.

I do often take people out ONE time to see if I want top work with them.

Qualifying a prospect that meets my client profile is my first order of establishing a client relationship before securing a buyer agency agreement. By exchanging information and cooperation to achieving their goals and objectives, a client relationship could begin without any reluctance to a commitment and a buyer's agency agreement.

Sometimes, however, opportunities are not what they seem to be or are simply unreasonable to accept and rejecting the opportunity is the best option.  

We went to a written buyer agency being a must in 2012, but it was reinterpreted this year to state that showing property is not necessarily a duty to a client.  

I was taught to present  my value, show how I'm different from typical buyer agents and ask for the agreement.

Good morniong Alan. I have always believed that any relationship is based on trust, but verifying is good too. I never used an exclusive buyer agency but never showed a FSBO with an open listing.