I ain't signin' no frickin agreement!

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

On Monday, I wrote a post, about a Buyer that had looked at one of my listings, with another REALTOR® and had called me the next day trying to go behind her REALTORS® back and make an offer directly through me, the listing Broker. Anyway in that post I had mentioned using a Showing Agreement (SA) to protect your interests and then switching over to a Buyer's Broker Agreement (BBA) after the first couple of showings. I had a couple of folks, in the comments, ask me about a SA, so I thought I would write this post to explain what it is and the benefits of using one.

Now folks, I feel it's only fair to let you know that I rarely work with Buyers. So a SA or a BBA is not something I get the opportunity to use very often. BUT I have been in this business for quite awhile and I have been in sales for about 30 years. So I feel qualified to give my thoughts on the advantages of using a SA. Also, please remember I'm a Florida Broker, so our laws may differ from yours. But whatever your laws state, the reasons for getting an agreement signed should be very similar. OK, so here goes.

A SA is a very simple, non-threatening, one page agreement that is very specific to the properties being shown. It is basically letting the Buyer know that you are going to show them the few properties listed on the agreement and if they decide to buy one of these properties you will get paid for your services. It is "registering" your Buyer as your customer or client. You can use it prior to showing one of your listings, a MLS listing, new construction or even a FSBO. The agreement is between the Buyer and your Broker. Here's a sample. Take a minute to look it over. It's pretty self explanatory.

The advantages of getting a SA signed prior to showing properties are numerous. Here are a few.

  • It will show you if the Buyer is serious or not.
  • It will ensure that you are paid for your services.
  • It will reveal if the Buyer is working with another REALTOR® or not.
  • It will let the Buyer know you take your job serious.
  • It will let the Buyer know what your obligations are.

The above advantages are important but to me the most important thing is, it will get your potential Buyer in decision making mode. The Buyer will have to make a decision whether or not to work with you and they will have to agree to it in writing. They will realize that purchasing a home is serious business and that they are going to be required to make decisions. How much easier will this make getting the BBA signed at the next appointment? How much do you think this will help when it comes time for them to make an offer on a property? You are setting the tone for the entire process. Had you thought about that?

Granted, some Buyers may balk at signing anything. At that time you can use your judgment whether or not you want to work with them or not. Personally, I don't understand why they would have a problem. It really is a simple agreement and it only commits them to one day and a few properties. It gives you time to build a relationship so you can proceed to the next step which is the BBA.

Try this: Meet the Buyer in your office or a neutral place before showing them homes and simply say "Hey Mr. and Mrs. Buyer, here is a list of the properties we are looking at today (hand them the agreement). Did I get them all? Good. OK sign here and here and let's get started." "What this?" "It's a Showing Agreement, it basically states the properties we are looking at today and says that, if any interest you, I will assist you to the best of my ability to negotiate an acceptable purchase and I will assist you in all aspects of getting it closed.. It also states that if I do that I will get paid. I'm just making sure we are on the same page before we get started. If you don't like any of these properties, we can go back my to my office and see what else we can find in the MLS. I'll get rid of this agreement and we will start over. Fair enough? Good, sign here and here and let's go."

Present it just as if it's a normal part of doing business with you. If you present it with confidence it will be a piece of cake. Practice makes perfect. After a few times you will be an old pro at it and you will be able to work with your Buyers with complete confidence. It will make you a better REALTOR®.

Now don't forget, a SA and a BBA are bi-lateral agreements. You too, have to perform. But hopefully knowing that your Buyers have made a commitment to you will motivate you to make a commitment to them. And together, you will be able to find the home they are looking for and will build a long term relationship in the process. Win, win.

OK, so how did I do? Are you willing to give it a try?

All content copyright © 2007 - Broker Bryant Real Estate Ramblings

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Comments (57)

Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
I always learn something about some angle of this biz from your posts Bryant.  And I like the way you work.
May 12, 2007 02:54 AM
Molly S Ringer
Weichert Hallmark Properties - Mount Dora, FL
Realtor Lake County FL Luxury Homes

BB,

Great post, as usual!  I'm bookmarking it to refer firnds back to.

Thanks for the insight!

Shai 

May 12, 2007 05:16 AM
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE
BB:  Sure would like something like that...although we hardly even use our Buyer's Representation Agreement (Exclusive Right to Represent)...   We do have a Century 21 Buyers Service Pledge which we give out....and they get intimidated by that!
May 12, 2007 05:44 AM
Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon
great idea - I still believe it is in the approach - I had a client this weekend wait to see property because he values me and my knowledge - rather than working with another agent. 
May 12, 2007 06:44 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Thesa, My customers are also very very loyal. I'm very good at building trust quickly. Hey did you the details I sent you? I didn't realise you were on vacation.

Hey Sally, Do yo have to give them the 100 "thingies" or whatever that is that C21 uses?

Hi Shai, Thanks for reading.

Thanks Jason. And I was very polite in this post.:)

Nick, I love Transaction Desk. The Florida Assoc. web site is really cool(rad,narly,dope). We have great tools to use for free. And I likes free:)

 

May 12, 2007 12:03 PM
Robert Hammerstein -201-315-8618
Christie's International Real Estate - Hillsdale, NJ
Bergen County NJ Real Estate

Hi BB,

So helpful as always.  Love this stuff and am still trying to wrap my feeble mind around it.  Please help!  Tried to open both links to these agreements and couldn't - we may not have the newest Adobe Reader?  Any suggestions would be greatly appreciated.

May 13, 2007 03:22 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Hi Lisa, Not sure why they won't open for you. There are links to an URL, no adobe. Pop me an email and I will send them to you.
May 13, 2007 03:33 AM
Linda Davis
RE/MAX Home Team - Gales Ferry, CT
I was away from AR for about two weeks for the most part and missed a bunch of posts.  Today I'm looking for the good ones I've missed while absent.   As always, great advice!
May 13, 2007 05:59 AM
Mike Stankewich, MBA, e-PRO - ZipRealty, Inc.
ZipRealty, Inc. - Huntington Beach, CA

Very good and informative article.  I have used this and the buyer-broker agreement several times, especially when I do not know the buyer or their intentions.

Early in my career I had situations where I shoed buyers property and they bought with another agent.  To avoid being "used" iuse the BBA.  If they won't sign that I use the SA.  If they don't sign that they do not see the property with me.  I am not going to waste my time.

May 13, 2007 07:08 AM
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE
100 thingies? It's like the Seller's Service Pledge...I pledge to do this and that for you...whatever...loyalty is only as far as they give me....and even after signing still have had some off the wall ones. We always say that we'd rather have client's who really want to work with us....hmmm...
May 13, 2007 01:32 PM
Lisa Hill
Florida Property Experts - Daytona Beach, FL
Daytona Beach Real Estate
I can't get your links to work for the agreements. I'd like to see your sample Showing Agreement. I'll see if I can download it myself. It may be a Firefox problem.
May 15, 2007 02:59 AM
Anna Baughn
Vance & Associates Real Estate, LLC - Dillwyn, VA
Central Virginia Realtor; "The Baughn Team"

I know this is an older blog but, Where does one find an SA such as you have. Is yours through your FL assoc. I think it is an awesome idea. 

 

Thanks,

 

Anna 

Oct 01, 2007 04:46 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Anna, It is a standard FAR form. But hey that doesn't mean you can't copy it and use it.
Oct 01, 2007 04:54 AM
Anonymous
Anonymous

I was not planning on copying it. It looked as though it was a state form. I will continue to look and see if VAR has anything like it.

Thanks

Anna 

Oct 01, 2007 05:17 AM
#50
Anna Baughn
Vance & Associates Real Estate, LLC - Dillwyn, VA
Central Virginia Realtor; "The Baughn Team"

Hey wait.......do ya think it would hold up (legally) if not from our state assoc.? Maybe it would work. I can't seem to find one in VAR. 

 

Oct 01, 2007 05:58 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Anna, A BBA or SA is a contract between your broker and the buyer. Since your broker is a party to the contract he can use whatever he wants. Have your broker check it out. Good luck!
Oct 01, 2007 08:59 AM
Lupe Soto-Realtor
Realty Connection Group - Los Angeles, CA
Listing, Selling Burbank Palmdale & more

 

Bryan

thank you so much for sharing your experience in terms of SA showing agreement.  is it possible to have a copy of your SA.  the link is broken and I would love to implement this. gracias.  greetings from Burbank CA.  03/02/08

Mar 02, 2008 05:07 PM
Julianne Steinmetz
Bay Street Realty Group - Beaufort, SC
Turning your dream into an address

This is a great idea and I will to check to see if we are able to use in our area.

What I usually do is explain to potential new buyers that I will go out with them one time to view a home and after that, I require a BRA to be signed.  I think this approach gives them and myself an opportunity to decide if we want to work together in the future.

Jun 06, 2008 03:11 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

You know, both you and my CRR (Charles Rutenberg Realty) broker are on the same page with this and I think the time has come to indeed incorporate this with each and every new person I have contact with. Obviously, I can't use it on clients I have been working with for the last couple of years - or do you think there is a way to pull this in (such as it is a new office policy)??

Nov 24, 2010 09:52 AM
Eileen Hsu
Douglas Elliman Real Estate - Manhattan, NY
LICENSED REAL ESTATE SALESPERSON

I like this SA concept very much. It is a checklist of a buyer's possible properties, they just have to sign it. Easy concept. A written agreement gives both sides much more committment to each other.

Nov 24, 2010 03:44 PM

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