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Ambassador
1,769,715
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

It has happened to us all. It will happen again but I still do not use a Exclusive Buyers agreement Paul. It is like a prenuptial marriage agreement and can ruin the relationship. I have to agree with Alan May about holding on through excellent service but sometimes that does not work.

Apr 30, 2016 08:45 AM
Rainmaker
526,059
Mike & Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

1.  Buyer Broker agreeements mean "O" unless the buyer understands what they are signing.  There must be "informed consent" which means that the buyer needs to be given a meaningful disclosure so they are fully informed before they give their consent to stay loyal.  

2.  I suspect that most agents just slip it in or gloss over it, which is evidenced by the number of AR agents who have a buyer sign a BBA at the time of contract, or before closing...why then? because state law requires a disclose?

3.  If you are not planning on enforcing the provisions in the BBA agreement, why bother with one?  All listing agents have no problem  enforcing  listing contracts but turn to mush when it comes to a buyer "listing contract".  Same thing, why the different standard?

4. In Kat Palmiotti  comment, she did not enforce the contract because the buyers counld not afford it.  If the buyers understood their exclusive responsibility and blew her off, who cares that they are buying a home they can't afford?  They could have made payments.

5.  As far as the other agent...it is not the responsibility of the buyer to educate the other realtor as to their ethics.  It is however EVERY agents duty to ask the buyer if they are under contract with another agent,...just like they do before they take a sellers lisiting.  That agent  in Kats story is not off the hook, because he should have asked.  Unfortunately this is business and no room for the buddy system.  What if an agent has to negotiate a contract with an agent friend?  Will the buyer loose out because of it?

6.  Yes, I always use a buyer broker agreement.  I have personally not been burned but I had a couple of my agents who did.  One I did not persue, because agent had buyer sign it on the hood of a car with vague explanation...not a disclosure they understood,  The other buyer I sued in court and won...she made payments for 2 years.

We do not list properties, so every buyer has to count. Our buyers seek out our services, so signing a BBA is never a problem.

If you decide to use an agreement, you will find that you will start doing better business with clients that respect you.

Eve

 

 

Apr 30, 2016 06:25 AM
Ambassador
3,076,735
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Yes.  It someone doesn't want to sign one, that is what I call a clue to stop wasting my time.

 

Apr 30, 2016 05:55 AM
Rainmaker
912,017
Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Non-negotiable 100% sign one or I refer them to another agent. They are not their to create loyalty; they are there to prevent to one in a million occurrence. It's more about commission than loyalty for me. 95% of my clients are referred to me and it's just a formality to set up proper commission expectations and minimums. That way I can show all properties and the buyer knows that below 2.5% they are participating in my commission. Oh by the way, if you make your clients sign a listing agreement, it's the same thing with a buyer agreement and creates equal treatment of clients.

Apr 30, 2016 07:44 AM
Rainmaker
1,367,327
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Paul S. Henderson, REALTOR®, Broker, Tacoma Washington BBA's are mandatory in my State.

Apr 30, 2016 07:23 AM
Rainmaker
3,191,180
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Yes...play to stay or go away

Apr 30, 2016 06:46 AM
Rainmaker
230,398
Mike Rock
Complete Design - Granite Bay, CA
Granite Bay Luxury New Construction...For Less

if i were an agent...i am not, but if i were. i would have them sign it if they wanted to use me. i would sell it as it is no different than a listing agreement

Apr 30, 2016 06:36 AM
Ambassador
779,788
Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

The only people who have burned me are close friends. I use it with everyone now. I let them know up front 'it's company policy,' I'll go out for a day, if we get along, they need to sign it before I get too far into the relationship. I let them know it protects them and allows me to 'advocate' for them. I've never had anyone balk . . . except those that only want to work with the listing agent . . . and I don't want them anyway. 

Apr 30, 2016 06:12 AM
Rainmaker
4,023,847
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

In Colorado, if you represent a buyer as a buyer's agent, you must have the Buyer Agency Agreement signed.   Not often do I work as a transaction broker, so every buyer signs.

May 03, 2016 10:41 PM
Rainmaker
5,266,230
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

It is a good practice. Some prospects do not want to sign them.

Apr 30, 2016 10:20 PM
Rainmaker
561,561
Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

We always use a buyer agency agreement, without exception. If a buyer prospect won't sign a contract, why would a real estate professional waste time with them?

The idea of "excellent service" being some sort of guarantee of loyalty is a non sequitur.  And the concept that agents who trust non-signers makes those agents superior service providers is a pretty big stretch.

Real estate is a contract business, from beginning to end. If the consumer doesn't like that, they will eventually learn.

Apr 30, 2016 09:58 PM
Ambassador
4,063,334
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

As soon as I am sure that I want to accept them as a client, we sign an agreement before moving forward.

Apr 30, 2016 06:53 PM
Rainmaker
4,318,900
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Yes. 

Apr 30, 2016 03:14 PM
Rainer
291,187
Virtual Realty Consultants
Virtual Realty Consultants LLC - Wellesley, MA
Making the American Dream a Reality

I won't take a customer out without an agreement to become a client - even if it is just for the day.  As they say in France "No ticky - No laundry".

Apr 30, 2016 10:48 AM
Rainer
36,220
Cynthia Biechler
Biechler Grp Real Estate w/HOMESMART Connect - Chicago - Chicago, IL

Paul, I will say that I hardly ever used the buyer agreements some time back & most clients were loyal but with that being said I use them now.  So valuable time is not wasted & separates the lookers from the serious buyers.

Apr 30, 2016 10:17 AM
Rainmaker
1,405,194
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Yes, but the "when" isn't always the same. I like to meet with new buyers in the office and get the agreement signed that day, but it doesn't always work out and I sometimes do it subsequently.

I do have to say, though, that using a buyer/broker agreement is NOT 100% guaranteed to result in loyalty. I had clients sign one once, and they went to another agent anyway, which I didn't find out about until after they went into contract with another agent as their representation (they were not responding to my calls/emails but I thought they were "healing" from the deal they lost). It is quite a story, and I could have sued them for the commission but decided not to because that extra commission would have meant they wouldn't have been able to afford the house and not only wouldn't they get the house, but the other agent (who I knew) wouldn't have received his commission, and he did work for them also and didn't know about my broker/buyer agreement.

Anyway, the short answer is yes, I use it with every buyer.

Apr 30, 2016 05:51 AM
Rainer
493,129
Noel Mayer
FAIRMOUNT REALTORS - Montclair, NJ
YOU'RE RIGHT AT HOME WITH NOEL

I stopped by.

May 18, 2017 02:04 AM
Rainmaker
4,796,551
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

On occasion.

May 13, 2017 05:14 AM
Ambassador
3,673,447
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

I do, but you're not going to hold them with a piece of papaer!  I have a clause I insert that lets either one of us out.  

May 01, 2016 06:12 AM
Rainmaker
1,212,209
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Never been burned.  Don't use them, unless I'm taking a buyer to an "off market pocket listing" of another agent (aka a home under construction and not ready for the MLS yet).

May 01, 2016 03:59 AM
Rainmaker
2,979,402
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Actually, more often than not my buyers ask me when they should sign an agreement. I've never been burned. My attitude is if someone decides they really don't want to work with me they'll find a way out of the agreement--mostly because I'll give it to them. Why hold someone who doesn't want to work with you hostage? 

I get many of mine signed just before we start making offers so I can be completely legal in my representation of their interests.

May 01, 2016 12:07 AM
Rainmaker
2,900,344
Richard Weeks
Dallas, TX
REALTOR®, Broker

Buyers get pre approved and sign a buyers rep or they can find someone else to work with.

Apr 30, 2016 11:41 PM
Rainmaker
3,049,971
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Always.  Is this another tale of being burned when not using one?

Apr 30, 2016 11:35 PM
Rainmaker
2,830,967
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

I encourage each agent to have their clients sign a buyer agency either before of just after the first showing.  If the clients refuse they should walk. 

Apr 30, 2016 10:13 PM
Rainmaker
823,488
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Nah, it's just piece of paper - if they don't want to work with me, what am I going to do - Sue them?

I think not.

Apr 30, 2016 09:55 PM
Rainmaker
730,490
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

At a certain point we use them, but i don't pressure anyone to sign one the first time we meet.

Apr 30, 2016 09:46 PM
Rainmaker
4,431,983
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

Apr 30, 2016 09:42 PM
Ambassador
4,298,246
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Paul S. Henderson, REALTOR®, Broker, Tacoma Washington - not always. However, rarely I am burned.

In fact, I fire some buyers if our frequncy don't match.

Apr 30, 2016 04:12 PM
Rainmaker
3,977,717
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I use them at least for every home I show someone

Apr 30, 2016 01:05 PM
Rainmaker
985,289
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Almost never... No one here will sign.

Apr 30, 2016 11:23 AM
Rainmaker
2,425,830
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

If I was to work with a buyer, they have to sign up. Yet, it would be subject to the actual person & circumstances. I am glad I lean toward listing to be sure

Apr 30, 2016 10:35 AM
Ambassador
3,981,962
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

When I set out working with a buyer I have the converstion about the buyer representation agreement and how and why they need my fiduciary duties. I have not had a buyer not sign it when asked to do so.

Apr 30, 2016 10:32 AM
Rainmaker
1,648,883
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

great question - i love reading the answers

 

Apr 30, 2016 10:27 AM
Rainmaker
1,522,917
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

In my 30+ years, I have never used a Buyer-Broker Agreement.

Apr 30, 2016 09:36 AM
Ambassador
907,360
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

I use on occasion. 

Apr 30, 2016 08:28 AM
Ambassador
1,621,250
Alan May
Coldwell Banker Residential - Evanston, IL
Helping you find your way home.

I don't use them at all.

I have been burned once or twice in my career, but when that happens, I find that it's more my lack of educating the client, than a desire, on their part, to screw me.

I figure: "If I'm doing my job properly, they'll purchase with me... If I'm not doing a good job, they'll go elsewhere... and I don't want to hold a client to me based on a contract.  I want to hold the to me based on truly excellent service."

Apr 30, 2016 07:41 AM
Rainmaker
4,873,384
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

when those for whom I market work a buyer, they never have a contract with them.... 

Apr 30, 2016 07:29 AM
Rainmaker
1,239,252
Raymond E. Camp
Howard Hanna Real Estate Services - Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

I hardly use it; if I am doing my job shouldn't need it.

Apr 30, 2016 06:15 AM
Rainmaker
3,765,828
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

I always use one. I discuss it up front as that is how I work. Always best to lay out guidelines. If I'm going to work hard for them I expect their loyalty.

Apr 30, 2016 06:06 AM
Rainmaker
516,859
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

I don't use it much except where I feel like I really need to protect myself. For example, a buyer came to me who had been working with the LISTING agent in a dual capacity. He realized that this agent wasn't on his side, and contacted me. I needed the contract to let the listing agent know she was now dealing with him through me. And, to her credit, there was no argument.

 

Apr 30, 2016 06:04 AM
Rainmaker
1,818,046
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I usually get it signed up front !

Apr 30, 2016 05:59 AM
Rainmaker
1,507,415
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

No, some won't sign them or just don't get it. I agree with Chris Ann.

Apr 30, 2016 05:57 AM
Rainmaker
681,534
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Not always; I have so much repeat and referral that I am pretty confident I have secured that client at the get. I WILL get a fee arrangement up front  when a client is going for lots of off-market or FSBO deals where cooperation is not yet secured, or we know that a co-broker will not cooperate.

Apr 30, 2016 05:57 AM