Buyer Agent Agreement- What You Need to Know
Have you ever heard horror stories from agents who had been helping potential clients, only to lose them when it came time to make an offer? Well, that likely happened because they didn’t have a signed buyer agent agreement in place. Let’s take a deeper look at these contracts so you can decide if you want to use them in your real estate business!
What is a buyer agent agreement?
A buyer agent agreement varies from state to state, but basically it is a contract that outlines the responsibilities of both the agent and the buyers. Once it is signed, the buyers agree to use you, and only you, as their agent.
While this is an optional contract, it can save you from losing some deals…but, there are also some drawbacks. Let’s look at both:
- It protects your time
- You don’t spend a lot of time and/or energy working with people who don’t end up becoming clients.
- Protects a last minute switch
- If a buyer signs the contract, they legally can’t switch and make an offer with a different agent.
- It shows commitment on both sides
- Each party is showing that they are all in.
- It can be a turnoff
- Like going on a few dates and then asking someone to get married- people may feel rushed and end up pulling back.
- It can show a lack of trust
- They may wonder why you’re asking them to sign the contract. They may question why they need to sign it and end up looking elsewhere for an agent.
- It can be difficult to enforce
- If your potential client does end up switching to a different agent after they’ve signed the contract, you can legally try to collect what you are owed. But, it is a very difficult and lengthy process.
So, it’s really up to you as agent. How comfortable do you feel asking your potential client to sign one? Here at Dalton Wade, it’s up to our agents- we don’t enforce that they use one. Some of our agents use them and some don’t, they do what works for them.
If you don’t use a buyer agent agreement, we do advocate having a discussion with your buyer. Let them know that you are there to help them, protect them and guide them. If you’re a good agent and you take care of your clients, you don’t necessarily need a buyer agent agreement- your customer service skills will keep them from wanting to go anywhere else 🙂
At Dalton Wade we believe that today’s buyers and sellers need a trusted resource that can guide them through the complex world of real estate. With our extensive knowledge and commitment to providing only the best and most timely information to our clients and agents, we are your go-to source for real estate industry insight and advice. Contact us today to learn more!