Is a handshake enough?

Reblogger Patricia Kennedy
Real Estate Agent with RLAH Real Estate AB95346

In my area, we're supposed to have signed agreements.  Some get them signed.  Others are more casual about it.  And frankly, buyers are reluctant to agree to get married on the first date.  

What works?  I think you get a one-day agreement signed.  It can be for the one house they want to see.  

If you like each other, you can extend it. 

Original content by Alan May

There's an active discussion on a Realtor associated thread on Facebook, about exclusive buyer's agency.

The storyline is that a Realtor received an online lead who wants to view a property.  The agent who received that lead has asked the lead to sign an exclusive buyer's agreement.  The lead is refusing... she's asking whether she should show the property, or tell them to find another Realtor.

The back-and-forth over what she should do has been rather polarizing.

Some congratulating her for taking a stand for professionalism, and some saying show her the property and have her sign afterward.

Since this is a national conversation, for those states that require an exclusive buyer's agreement in order to show property... well, of course, you have to have it signed.  But most states of the union do not require a buyer's agreement signed in advance in order to show property.

In our area, we don't see a whole lot of Exclusive Buyer's Agreements in use.  But some agents use them.. in fact they swear by them... while others don't bother.

How are things done in your area?

 ALAN MAY, Realtor®


Specializing in Evanston Real Estate and North Shore Real Estate

Coldwell Banker Residential Real Estate, 1710 Central Street, Evanston, IL 60201
847.425.3779      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

   

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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Interesting post to reblog, Pat. There are lots of perspectives as Alan's commentary indicates. I missed the online discussion but no doubt it was a spirited one!

Jeff

Nov 29, 2016 10:10 PM #3
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Paul S. Henderson, REALTOR®,CRS,
RE/MAX Professionals. - Tacoma, WA
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Thank you for this Alan May reblog Patricia Kennedy; it was worth the read  

Nov 29, 2016 10:10 PM #4
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Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

It's all about differentiation, time management and how you want to run your business. 

Nov 29, 2016 11:05 PM #5
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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Patricia. This discussion has been happening for years regardless of what it is called.

Nov 30, 2016 03:14 AM #6
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Endre, the main purpose of the buyer broker agreement is to get the agent paid, not to protect the client.  But where they are the law, you have to use them - even if it's a limited to one day agreement.

Nov 30, 2016 05:45 AM #7
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Tammy, my state (at least one of them) does mandate it.  Still, I think there are a lot of agents running around with "clients" that haven't signed anything.

Nov 30, 2016 05:47 AM #8
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Jeff, the comments are often as interesting as the post!

Nov 30, 2016 05:48 AM #9
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Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

This is true, Pat... but at the end of the day I've never really worried about it. The people I really want to work with don't ever end up trying to "stiff" me. Ususally my clients ask me if they shouldn't be signing something with me. And I've converted many a prospect to a client who bought precisely because they said I didn't chase after them for an agency contract before they were ready.

Nov 30, 2016 06:23 AM #10
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Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Yes, I'm not a get-married-after-the-first-date kinda gal either!  I can typically determine if an online lead is trying to find a professional door opener or if they are seriously looking for someone to help them before I ever meet them. Those who want to represent themselves can find someone else to show the house! 

95% of the time, the buyer agency agreement is signed upon submission of their Offer.

Nov 30, 2016 07:23 AM #11
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Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Patricia Kennedy, thanks for the reblog on this suggest.  I missed it the first time around.

 

Nov 30, 2016 11:00 AM #12
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Jane Peters
Home Jane Realty - Los Angeles, CA
Connecting you to the L.A. real estate market

Not required here. I worked for one broker who insisted we them them signed. But good luck getting them signed here. We wouldn't be in business long if we had to. Like Tammy says, it's about building trust. Since procuring cause should rule in the case of a showing, I am not sure what good they are. They are not enforceable if a buyer decides they no longer want to work with you.

 

Nov 30, 2016 12:39 PM #13
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William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Patricia, I do the one day rep oten and it most always turns nto a full time representation contract

Nov 30, 2016 03:27 PM #14
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Paul,    Alan is alwaye  terrifid  

Nov 30, 2016 06:04 PM #15
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Michelle, I don't think the agent in question sounds especially professional.  As a consumer, I would never dream of signing an exclusive buyer agency contract as the price of admission to a house.  If the agent showed it to me and impressed me with her knowledge of the market and professionalism, I would consider working with her.  Under those conditions, I would think we could work something out.  

Nov 30, 2016 06:09 PM #16
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Sheila, it certainly has!

Nov 30, 2016 06:10 PM #17
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Debe, I think that's the case here as well.  In Maryland, the law just changed, and we're supposed to get the agreement signed ahead of time.  A lot of agents don't understand that they can limit the time and scope of the agreement.  One day, one house or whatever.

Nov 30, 2016 06:15 PM #18
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Nina, you just have to be careful what you say to them if you don't have some sort of agreement to represent them.  

Nov 30, 2016 06:17 PM #19
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Will, glad you saw it!

Nov 30, 2016 06:18 PM #20
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Jane, I think that many of the laws were made by people who have no clue how the business really works and the best way to take care of consumers.

Nov 30, 2016 06:19 PM #21
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Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

William, that's the best way to handle it.

Nov 30, 2016 06:20 PM #22
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