Well, I'm sitting here watching Army Wives (which is an awesome show) trying to figure out what to blog about tonight and then it hit me. Buyer's agency. I really wonder how you guys handle it. I must admit it is something I struggle with. By the way, although my company is on here for being a virtual assistant I do actually manage a real estate office and training is one of my main responsibilities. So this is why I struggle with BA. I come from a office up north were it was drilled in our head the first thing you do with a buyer is bring them into the office, show your buyers presentation, maybe look at the MLS, but definitely discussing and signing a buyers agency. If they don't want to sign an agency then you simply didn't work with them (now this didn't happen in every occasion but you get the idea) Since I started working at my office in KY you mention buyers agency and everyone's eyes glaze over and I've lost them. Then the next day they are the very one at my door saying I lost my client so and so stole them. Then I once again point did you have them under agency? Well no they say. Well you see they weren't your client! Inasmuch as I would love to say you can always trust people at their word, you just can't today. You know what they say buyers are liars and blah blah, but the truth is sometimes it is really true. I really see buyer's agency as a simple concept. If you will actually educate your buyer and let them know you are working as a subagent for the seller and NOONE is looking out for their best interest they are ready to sign on the dotted line. Who would really want to go into their biggest financial investment of their life with someone looking out for them! So I thought I would throw it out there and see how you feel about it
Jamie, even with a buyer's agreement, they still leave you for another. It's a no win situation.
Jamie, I do not sign agreements until we write a contract. I have learned to harrass the fool out of them. If we actually go out and look, I talk to them everyday.
JAMIE - I've been doing a series of posts on buyer agency. I think that there are very legitimate reason to use a buyer agreement. I go into it in much more detail in my posts, but to cover it briefly, I need to contract to be able to contact FSBO's that may be on the Do Not Call List.
No, because I have other things to do than to cry over spilled milk. Another one will come along.
I wonder how many people would take a job with a company without filling out the necessary paperwork to be hired. Just come in on Monday morning and start to work with the hope of getting paid based on a promise. I see no difference in doing that, and showing someone a property without getting a buyers agreement signed. Yes, they can still go to someone else, or just leave you high and dry for any reason, but the way I look at it is this. If someone is serious about buying, honest and forthright, they should not mind signing an agreement. I don't work with anyone if they don't sign an agreement. My time is as valuable as any other professional providing professional services for compensation, and gas is much to expensive to be providing free services.
Well i've never actually had one go to court. The few cases we've encountered the brokers worked it out between the two so both agents get paid. I just can't imagine agents driving around with buyers for hours on end espically with how much gas is costing them and not having them signed on the bottom line. I see it happen everyday, but I just don't understand it. As an agent does buyer's agency intimidate any of you?
Jamie, I think it is a comfort zone. When I was new, there was no such thing as a BBA. We had to learn the lingo and how it worked. Now that it has been many years dealing with it, it is a second nature. It needs to become a norm. I would not work with anyone unless they agreed to sign the agreement. In my state you cant do it when you sign the contract. If you do it that way, you are a presumed buyers agent and you cannot show anything listed from your company. I know it is different state to state, but that is how it works in my world.
We have had some agents get reported to the commission because the buyer thought they were being represented and having no clue because the topic of buyers agency has never come up.
First thing we do in Texas is present a form called Information About Brokerage Services which explains agency. It clearly states above the signature line that by signing, they acknowledge only that the form has been presented to them. It's a great lead in to the whole discussion on buyer representation.
Hi Jamie...From what you have learned and I have also, the practice differs from area to area. I work in a second home/retirement area.
Where I am, some buyers purchase the first day or within two or three visits. Other times I may be working with them for one or two years.
I do not have them sign a Buyer's Represetative Agreement although they do sign a brokerage relationship form which describes the different types of relationships and they then determine if they want me to represent them. They invariably do.
Perhaps if I worked still worked in an area like I did when first licensed (21 years ago) where people made decision much faster I would use the agreement.
Kathleen
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