Should I sign a buyer’s agent agreement?

When you are buying real estate, there are times when your agent will ask you to sign a “buyer’s agent agreement”. What is that agreement and should you sign it?

The relationship that sellers have with their real estate agent is clearly defined when they place their home for sale. It defines the relationship with the agent and clearly spells out the commission that the seller will pay to both the listing broker and the selling broker when the sale of the home closes.

In contrast, buyers will often work with a real estate agent without any formal written agreement in place. A buyer’s agent may spend weeks or months helping a buyer to find a home. Sometimes a buyer will switch to a different agent at the moment of signing a contract for a home. It can be an inadvertent change, such as writing an offer directly with a sales office of a new subdivision. It can also be an intentional change, maybe to give a friend the real estate commission or simply to change to a discount broker at the last moment to save money. Obviously the original agent expects to be compensated for their work, so they will ask for a buyer’s agent agreement up front to avoid these situations. A buyer’s agent agreement will specify rights and duties of the buyer and the agent and will also specify how and when the agent will be compensated. In some states (though NOT in Washington), if you don’t specify and sign a buyer’s agent agreement, the agent may by default represent the seller.

Real estate agents are taught to sign these contracts to protect their interests and ensure that they get compensated for their work. In our opinion, asking for a commitment like this is the quickest way to turn off a buyer that we haven’t worked with before. We do not require a buyer’s agent agreement. One of our competitors, in contrast, requires their buyers to sign a buyer’s agent agreement when they make their first offer. That agreement locks them in for 180-365 days for any future offers. This seems a bit excessive to us.

Buyer’s agents do deserve to be compensated, and our hope is that customers recognize the value we provide. We simply don’t believe that the formal agreement is needed to “lock in” our customers. Besides, the negative consequences of trying to enforce such a contract can far outweigh the benefits it provides to us.

If you are considering signing a buyer’s agent agreement, make sure that it covers the following points:

  1. Shorten the term – If you are unsure about the agent you have chosen, shorten the term so that you are able to switch agents if it doesn’t work out.
  2. Try out the agent – Offer to sign the agreement after a “trial run” of seeing homes with the agent for an afternoon or two.
  3. Make sure you both can terminate – If the relationship isn’t working, give both yourself and the agent the opportunity to terminate and move on. In Washington this happens one of three ways. The agreement terminates at its expiration date, the agreement terminates when the transaction is complete (i.e. house purchase is closed), or the agreement terminates when one party gives written notice to the other.
  • http://www.TeamReba.com Reba Haas

    I find it interesting that your comments about what to look for in a buyer’s agency agreement and specify the "make sure you both can terminate". In WA State there are 3 ways that agency can be terminated: 1) expiration of the contract and there should always be an expiration to be a valid contract – no business relationship is in perpetuity, 2) since agency is transactional in this state a relationship with an agent ends if you’ve concluded your business, meaning, that a home sale has been completed, and 3) termination by either party (usually required in writing).
    Don’t forget though that buyer’s agency agreements should spell out not only what the buyer’s requirements of the relationship are, but also the agent’s duties to the buyer. Much like your firm puts the rebate info in your forms, we also put any guarantees, disclosures, and other aspects of what the state or our broker requires us to put in.
    Welcome, findwell to the local marketplace. It will be interesting to watch how your firm grows and how Redfin responds to your business model.

  • http://www.TeamReba.com Reba Haas

    I find it interesting that your comments about what to look for in a buyer’s agency agreement and specify the "make sure you both can terminate". In WA State there are 3 ways that agency can be terminated: 1) expiration of the contract and there should always be an expiration to be a valid contract – no business relationship is in perpetuity, 2) since agency is transactional in this state a relationship with an agent ends if you’ve concluded your business, meaning, that a home sale has been completed, and 3) termination by either party (usually required in writing).

    Don’t forget though that buyer’s agency agreements should spell out not only what the buyer’s requirements of the relationship are, but also the agent’s duties to the buyer. Much like your firm puts the rebate info in your forms, we also put any guarantees, disclosures, and other aspects of what the state or our broker requires us to put in.

    Welcome, findwell to the local marketplace. It will be interesting to watch how your firm grows and how Redfin responds to your business model.

  • http://blog.findwell.com Kevin Lisota

    Thanks for the comments Reba. That is great clarification for Washington residents.

  • http://blog.findwell.com/ kevin lisota

    Thanks for the comments Reba. That is great clarification for Washington residents.

  • Michael P Lindekugel

    One of the most popular reasons for lawsuits and arbitration is procuring cause. A buyer’s agency agreement helps protect the agent and the buyer from an intentional or unintentional lawsuit.
    Findwell doesn’t really believe in using buyer’s agency agreements. Do you use listing agreements? If you do, why?

  • Michael P Lindekugel

    One of the most popular reasons for lawsuits and arbitration is procuring cause. A buyer’s agency agreement helps protect the agent and the buyer from an intentional or unintentional lawsuit.

    Findwell doesn’t really believe in using buyer’s agency agreements. Do you use listing agreements? If you do, why?

  • http://www.go-estates.com Karel Zeman

    My point of view is from a buyer’s perspective only. I was thinking about to become a Realtor, because of the miserable service I am experiencing it should be very “easy” for me to make a lot of money. My focus is on customer satisfaction and not to focus on if I am working for free. HA HA
    I can say that signing a BA is not in my best interest. My experiences with realtors are quite disappointing. Being reliable, competent and up to date with market trends is not likely in Oklahoma. I had to "run" from so many agents, because of this.
    I just got tired of waiting weeks for an answer or waiting at the estate with an appointment and the agents are always late or not showing up at all. Dishonesty up to thick lies is very common. Also to find out if a realtor is willing to work in "my" favour has to be discovered from me yet. Everybody is so focused on that they are not working for free that they are totally forgetting about the buyer’s needs.
    Anyway….. in general comparisons of buying a “product”. If I go to a car dealer and they are asking me to sign a BA before they actually have a car what I am interested in…….What would I do? I would just walk away until I have a specific car what I want to buy. PERIOD.
    I hope that my post is an “inspiration” to all the realtors out there who are thinking about “their needs” first.
    Do you want to sell? Serve the customer’s needs! Be reliable, honest, competent and educate yourself in business customs.
    Here are some things of interest of what I am missing in Oklahoma – Business customs:
    “Hello”, “thank you” “goodbye”, “you are welcome”, something to drink when I am in a Realtors office.
    I noticed the more money I am willing to spend on a “product” the worse the service gets. I get better customer service at a grocery store then from a realtor where I could spend a lot of money. I think realtors have a lot to learn.
    Another thing of interest:
    When I am opening the phone book to find a realtor every second number is already disconnected. That speaks by itself. Realty is NOT about “quick shots”.
    Conclusion:
    Any realtor who is asking me to sign a BA prior to the sale is out of the game immediately and I do not care what anybody has to say about this. If a realtor wants the buyers money they have to serve the “clients needs” first and not their own. The argument that “I do not want to work for free.” is completely inappropriate from an independent business person’s point of view. People who have that in mind are just not ready to be on their “own”.

    • LouHolt

      Do you work for free or just putz away on the internet at work while drawing a salary?

      • Nordic

        You do realize you responded to a two year old post, right? I’d say you’re the putz.

    • Just a dude

      I totally agree.

      If realtors get in the business without seeing what the job really entails, then it’s their fault. The whole business IS a gamble. You DO have to work “for free” sometimes. But then again, how would you know who will buy and who won’t? That’s why realtors have to take it easy. You do a good job by accommodating people, and naturally some of them will come back to you, refer you to friends, and the big bucks WILL come.

      Want a job with guaranteed pay? Work at Starbucks. If you’re not in the realty business with at least an ounce of generosity, then get out.

      …or, start charging people gas money for driving them around. Go talk to other realtors and start a standard practice of everyone nickle and dime’ing everyone for transportation and time. See how far that will get you.

  • http://www.go-estates.com Karel Zeman

    My point of view is from a buyer’s perspective only. I was thinking about to become a Realtor, because of the miserable service I am experiencing it should be very “easy” for me to make a lot of money. My focus is on customer satisfaction and not to focus on if I am working for free. HA HA

    I can say that signing a BA is not in my best interest. My experiences with realtors are quite disappointing. Being reliable, competent and up to date with market trends is not likely in Oklahoma. I had to "run" from so many agents, because of this.

    I just got tired of waiting weeks for an answer or waiting at the estate with an appointment and the agents are always late or not showing up at all. Dishonesty up to thick lies is very common. Also to find out if a realtor is willing to work in "my" favour has to be discovered from me yet. Everybody is so focused on that they are not working for free that they are totally forgetting about the buyer’s needs.

    Anyway….. in general comparisons of buying a “product”. If I go to a car dealer and they are asking me to sign a BA before they actually have a car what I am interested in…….What would I do? I would just walk away until I have a specific car what I want to buy. PERIOD.

    I hope that my post is an “inspiration” to all the realtors out there who are thinking about “their needs” first.

    Do you want to sell? Serve the customer’s needs! Be reliable, honest, competent and educate yourself in business customs.

    Here are some things of interest of what I am missing in Oklahoma – Business customs:

    “Hello”, “thank you” “goodbye”, “you are welcome”, something to drink when I am in a Realtors office.

    I noticed the more money I am willing to spend on a “product” the worse the service gets. I get better customer service at a grocery store then from a realtor where I could spend a lot of money. I think realtors have a lot to learn.

    Another thing of interest:

    When I am opening the phone book to find a realtor every second number is already disconnected. That speaks by itself. Realty is NOT about “quick shots”.

    Conclusion:

    Any realtor who is asking me to sign a BA prior to the sale is out of the game immediately and I do not care what anybody has to say about this. If a realtor wants the buyers money they have to serve the “clients needs” first and not their own. The argument that “I do not want to work for free.” is completely inappropriate from an independent business person’s point of view. People who have that in mind are just not ready to be on their “own”.

  • Bill

    Karel is absolutely correct!!

  • Bill

    Karel is absolutely correct!!

  • Joel Stern

    The need for clarity in real estate transactions is crucial. I was victimized by a sham buyers agent in 2005 because of my naivete, misplaced trust, and ignorance of obscure toohtless statutes. For more information about my experience, go to Google and type in my name "Joel Stern", then "Weichert": you’ll find numerous blogs and websites devoted to my lawsuit against Weichert Realty of Maryland for consumer fraud.

  • Joel Stern

    The need for clarity in real estate transactions is crucial. I was victimized by a sham buyers agent in 2005 because of my naivete, misplaced trust, and ignorance of obscure toohtless statutes. For more information about my experience, go to Google and type in my name "Joel Stern", then "Weichert": you’ll find numerous blogs and websites devoted to my lawsuit against Weichert Realty of Maryland for consumer fraud.

  • Mercy

    We are in a tensed situation with a realtor right now and Karel, your words are very soothing at this time. Thank you for your comments.

  • Mercy

    We are in a tensed situation with a realtor right now and Karel, your words are very soothing at this time. Thank you for your comments.

  • Mercy

    We have 4 page complaint letter against our Realtor & Broker. Should we file this complaint with TREC? Any suggestions?

  • Mercy

    We have 4 page complaint letter against our Realtor & Broker. Should we file this complaint with TREC? Any suggestions?

  • AlySan

    I can understand the point of view of the buyer who has had a bad experience but, I want to say that, I, as an experienced agent, have spent months with buyers, only for them to buy a home from someone else. I’m always at my phone and I have a Blackberry so I answer emails very quickly. When I get a request for information on a property, I get to it immediately and I represent my buyer to the fullest extent.
    I’ve rearranged my schedule and have given up my personal plans to meet the schedule of buyers, I’ve been hit on by husbands, had people’s children running through someone’s home and the parents didn’t tell them not to. One child stole a toy that I noticed in the car and I had to ask for it back and bring it back to the house. I was accused of not liking children for asking someone’s kids to put gum back into their mouths in someone’s home and the buyers bought a home from somewhere else. There was no winning with that. I’ve had buyers go directly to the seller or builder after I showed them the home. We are legally unable to give out certain information (we can give sources for information) yet I was fired by a buyer for obeying the law.
    I ran out a number of times to show one home at a time to a lady and when I asked her and her husband to sign with me, the man said he wouldn’t sign with anyone. I continued to help them (I shouldn’t have) and they bought a home from someone else because they called on the sign.
    Please consider that some of us are very astute, educated and serious about good service. My mother was a Broker as am I and I’m an educated, good person, as well, who has the right to make a living doing what I’m very good at.
    With any agreement, it works both ways; it’s not just for the agent’s benefit. A buyer’s agreement holds an agent accountable for representing the buyer to the exclusion of any sellers. We owe the buyer the loyalty to find them what they’re looking for, educated them on the process, assist them with getting a mortgage and find information and report to our "client" anything that can assist the buyer in negotiating. I’ve been in the business long enough to be able to anticipate problems and catch them before they happen or get out of hand. An agent who isn’t representing the buyer owes the buyer nothing. The agent needs to be held to that responsibility. Buyers deserve to have an experienced, licensed party to advise them. If your agent does not adhere to their part of the agreement, the buyer has the right to request to get out of the agreement. Talk to the agent’s broker and/or put it in writing.
    Listing agents negotiate their commission with their sellers and then offer buyer’s agents a portion of their commission to bring buyers. If you go directly to a listing agent, they will keep their negotiated commission; not give it to you.
    In return, my hours of working for buyers, taxiing them around and money I’ve spent in gas shouldn’t be for naught. The amount of time I’ve worked with no paycheck brings down my hourly rate considerably. I’d appreciate that people not stereotype and use one bad experience to label all Real Estate agents. We are not all the same. Thank you.

    • Basrallbs

      Hey pal, if you don’t like the rules of the profession you are in, pick another one. You all work for the seller. Buyers agreements are nothing but one sided. Realtors side. Who come up with the idea anyway? Oh yeah – that’s right – you guys did. Hummm…. How about this – you sign an agreement that says if you sell a house that I want to someone else, then you have to pay be a commission. It’s in your best interest to do this, really. Your agreement is different huh – “Holds the agent accountable for representing the buyer” Or eles what? What if you don’t? How the hell does it do that exactly? Sorry lady – I’m “educated” too…

      • Always Closing

        I avoid doing business with people that shows to have the same mentality that you have. If you’re educated, you’re not putting your knowledge to good use. It’s always fun to drive around with an agent visiting properties, the agreement is to show that you’re serious about working with the agent, they are NOT the enemies here, they represent you like the listing agent represents the seller. @ Alysan, well said, I understand where you’re coming from.

      • Tcolley8060637

        Educated moron! You need to get a clue! We all work for the seller? How is that true? When I negotiate a sweet deal for my Buyer well under market value even though the home was listed at market, that’s working for the seller? Sounds like you need to re-edumicate yourself Basrallbs! The reason this Buyer-Broker Agreement came into existence is because buyers were wasting agents’ time without the agent being compensated like many of my collegues here have expressed. What other profession do you know where workers don’t get paid after work has been completed?  Even when a construction contacter enters into an agreement with a homeowner  and doesn’t complete a job for whatever reason, many times he is compensated for whatever work he finished. He usually has a contract with the homeowner too. Hello!! Lawyers have a similar situation. If a client fires his lawyer and hires a replacement, he usually recieves a bill for whatever service was completed up until that point. In America, when most people go to work, they get a paycheck for whatever hours they put in. My point being, the Buyer-Broker Agreement is just to assure we get paid for work that was provided and not put in endless hours searching homes for a client only to have him/her not close on the deal for whatever reason. Not everyone is honorable and fair, and there are those who will do shady things for their own personal gain no matter who it hurts..  Also,the agreement does hold us accountable to the Buyer-Try reading one Mr. Educated Man! You have no clue how our industry works and its sooooo obvious!

      • Sylvaniahousehunter

        Clearly, you are not educated in the matters of real estate. I’m not sure who told you that we all represent the sellers but that hasn’t been the case for decades. I am an excellent agent and will not complain about the profession I’m in, I just refuse to work with any buyer who will not sign an agreement. It has been my experience that the only people not willing (only a few in my 8 years as an agent) to sign are the ones who are either not serious about purchasing a home or only interested in using me without regard to my time. These people usually “use” people without regard in all areas of their life and I’m only interested in building relationships, both professional and personal, that believe in mutual respect. Keep in mind, that a Realtor’s business is based on referrals and word of mouth. If my clients are not happy with my performance, they will not share my name with others. Good agents care about helping their clients’ reach their goals and get the best deal possible. A smart buyer realizes that this type of teamwork is always going to be in their best interests. Feel free to keep  your cynical views but you are the one who will suffer, not the smart agent that refuses to take you on as a client (the only agents that I know willing to work without a buyer contract are usually the new ones that need any kind of business they can scrounge up… good luck with that).

    • Laura

      We have been working with a buyer’s agent for about a month now. We have an agreement for 6 more weeks. I would like to terminate the relationship because I’ve come to realize that she doesn’t have in-depth knowledge of the neighborhoods we are looking in, doesn’t know what will be coming on the market soon, etc. She has shown us 2 houses that aren’t yet on the market. The other houses, easily 15, that we’ve looked at have been houses we have found & said we’d like to see. She is nice, timely and professional. I just don’t feel she has the knowledge we need from a realtor. I know I can end the contract with 3 days notice, but I feel bad that she has spent so much time with us & will get nothing. Anyone have recommendations on how to handle this?

  • AlySan

    I can understand the point of view of the buyer who has had a bad experience but, I want to say that, I, as an experienced agent, have spent months with buyers, only for them to buy a home from someone else. I’m always at my phone and I have a Blackberry so I answer emails very quickly. When I get a request for information on a property, I get to it immediately and I represent my buyer to the fullest extent.

    I’ve rearranged my schedule and have given up my personal plans to meet the schedule of buyers, I’ve been hit on by husbands, had people’s children running through someone’s home and the parents didn’t tell them not to. One child stole a toy that I noticed in the car and I had to ask for it back and bring it back to the house. I was accused of not liking children for asking someone’s kids to put gum back into their mouths in someone’s home and the buyers bought a home from somewhere else. There was no winning with that. I’ve had buyers go directly to the seller or builder after I showed them the home. We are legally unable to give out certain information (we can give sources for information) yet I was fired by a buyer for obeying the law.

    I ran out a number of times to show one home at a time to a lady and when I asked her and her husband to sign with me, the man said he wouldn’t sign with anyone. I continued to help them (I shouldn’t have) and they bought a home from someone else because they called on the sign.

    Please consider that some of us are very astute, educated and serious about good service. My mother was a Broker as am I and I’m an educated, good person, as well, who has the right to make a living doing what I’m very good at.

    With any agreement, it works both ways; it’s not just for the agent’s benefit. A buyer’s agreement holds an agent accountable for representing the buyer to the exclusion of any sellers. We owe the buyer the loyalty to find them what they’re looking for, educated them on the process, assist them with getting a mortgage and find information and report to our "client" anything that can assist the buyer in negotiating. I’ve been in the business long enough to be able to anticipate problems and catch them before they happen or get out of hand. An agent who isn’t representing the buyer owes the buyer nothing. The agent needs to be held to that responsibility. Buyers deserve to have an experienced, licensed party to advise them. If your agent does not adhere to their part of the agreement, the buyer has the right to request to get out of the agreement. Talk to the agent’s broker and/or put it in writing.

    Listing agents negotiate their commission with their sellers and then offer buyer’s agents a portion of their commission to bring buyers. If you go directly to a listing agent, they will keep their negotiated commission; not give it to you.

    In return, my hours of working for buyers, taxiing them around and money I’ve spent in gas shouldn’t be for naught. The amount of time I’ve worked with no paycheck brings down my hourly rate considerably. I’d appreciate that people not stereotype and use one bad experience to label all Real Estate agents. We are not all the same. Thank you.

  • CP

    Right on Alysan! You said it perfectly. I feel for buyers and sellers b/c there are a lot of bad agents out there. However, most people are good judges of character and you can tell when someone is on the ball…if so, sign the B/A you can get out of it at anytime but at least you both know that you are both working in each others best interests!

    • LouHolt

      Yep, bad agents, bad buyers and bad sellers. Life and every business is full of them.

  • CP

    Right on Alysan! You said it perfectly. I feel for buyers and sellers b/c there are a lot of bad agents out there. However, most people are good judges of character and you can tell when someone is on the ball…if so, sign the B/A you can get out of it at anytime but at least you both know that you are both working in each others best interests!

  • Lou

    As a Realtor for nearly 20 years, I no longer work with buyers longer than one week without a Buyer Agency Agreement. That should be long enough for a buyer to decide whether or not I am competent enough to represent them. My time is too precious to me and my family to waste it on a disloyal buyer. If they (buyers)want to terminate our agreement, that’s fine, but if they want to buy a home I have previously shown to them, they’ll need to "offer" thru me or pay me a fee.

    • Hunghank

      No they won’t. Unless of course they are stupid enough to sign a one sided Buyers Agreement.

  • Lou

    As a Realtor for nearly 20 years, I no longer work with buyers longer than one week without a Buyer Agency Agreement. That should be long enough for a buyer to decide whether or not I am competent enough to represent them. My time is too precious to me and my family to waste it on a disloyal buyer. If they (buyers)want to terminate our agreement, that’s fine, but if they want to buy a home I have previously shown to them, they’ll need to "offer" thru me or pay me a fee.

  • Betty in Georgia

    To the realtors: It is very loyal of you to speak out on behalf of your profession. However, I will never sign a BA again. A realtor on a previous post wrote that she is a good person who is honest, and work hard. So am I.
    To future buyers: After signing a 6 month BA, my husband and I endured the less than desirable services of realtor out of good faith for 5 months. We finally asked to be released at the end of the 5 month period because of the realtor's unavailability. She agreed but sent a list detailing that she expected to receive commission on any properties that we had access to in a Gateway (internet)profile that she established when she was trying to woo us as clients in the event we make any purchase within the next 60 days. So it ties our hands and keeps up from moving forward with another agent.
    My advice: Buyers Beware!
    Know the exact terms of what you are signing because there are people out there who are depending on your lack of knowledge to exploit and take advantage of you.

  • nobuyersagreement

    There is NO benefit to signing an exclusive search agreement as a buyer. None. Zip. Nadda. 'I won't waste my time' as stated by Lou is simply a cop out. A 'search' involves a few clicks of a computer, and you want 4 or 5% for this? Not on my watch. You pick me up, you buy me coffee and lunch, you take me to the properties that you want me to see, you negotiate a savings on the asking price – then I'll sign an agreement. Show ME you will work FOR THE MONEY!

    • cantstandidiots

       You’re an idiot.

    • socal_agent

      A ‘search’ involves only a few click of the mouse huh? Well, I guess all the time away from my family and thousands of dollars worth of gas money I have been spending has not been necessary afterall…geez, wish I would have known this info a LONG time ago.  

    • IamMyOwnRealtor

      I completely agree with you. I have been dealing with realtors for a year and they are all the same. They all want easy money. And if the deal does not represent significant commission, the less they care for your deal. It is the easiest job do and the earnings are tremendous. They want you to pick from the first 5 homes they show you; otherwise, they start getting frustrated. They also sent you homes that don’t even apply to your profile, in spite of endless specifications. Some even try to get you in a deal they want, in order to get done with that deal, and go to the next. I ended up being my own realtor doing hundreds, if not thousands of searches because the realtor won’t dedicate the time needed to find the right home. I take the time to see pictures, features, Satellite view using Google, Street View to visit the neighborhood without having to drive, all using Google. And most of realtors I have dealt with don’t even know how to do this, or don’t use it. They should take intense computer and Internet classes too. Sometimes, it is frustrating.

      I also contact the agent representing the property asking all the necessary questions, not having to wait for intermediaries that sometimes are busy with “other clients”. I would only hire one to represent me for a small flat fee in the closing, but that’s it. If they don’t accept, then an attorney can do it.

  • lalalulu999

    I am a buyer and I regret signing one. I'm buying within a month and the guy is really not motivated or something. It's very strange. I'm more the kind of person that likes to get things done quickly but he seems like he could care less about my timeline. When I signed it he said they are very easy to get out of but I don't even know if that's true. Maybe easy for him, since he gets paid even if he doesn't help me, it seems.

    • LouHolt

      # 1. he doesn’t get paid squat if you dont buy anything unless he works for a company that pays a salary, which is very rare.
      # 2. If you have any questions about your contract, call your companies broker.

  • http://www.bfirstrealestate.com homes for sale in richmond va

    Well I think that without an agent there is a strong possibility that you could get taken for a ride by some unscrupulous builders. The builders have representation and so should you, if for nothing else than a guiding hand during the paperwork review and purchase process.

  • Susan

    Lou,

    I would never hire you for a million years. My time, my money and my health are too precious to me to deal with not professional people. Y

    • Elaine

      I don’t think Lou would want to work with someone like you anyway, Susan. You seem exactly like the type of buyer who would be disloyal and flakey because you feel you are justified. I bet you don’t tip waitstaff either, thinking, “they get an hourly wage, why should I bother?” You are totally clueless…

    • Always Closing

      “For” a million years sounds like a long time. Lou, I like your way of working, procedures like the one that you have been using will only filter out the buyers from the time wasters (Susan).

  • http://www.astutebuyersadvocates.com.au/ Buyers Agents

    you indeed cited the points
    it is only fair for both sides to be able to terminate the contract for valid reasons of course

  • Buying a home

    Great Post..Thanks Fro the nice Post..Keep Sharing

  • http://www.realbigisland.com Hawaii property finder

    I do not ask clients to sign a buyers agent agreement because they usually don’t feel that it is in their best interests . Maybe it isn’t , but having a buyers agent working for you certainly is. It is amazing how many people believe that they should contact the seller of a property they are interested in, that somehow that person will give them all the information they need and help them get the best price . I work really hard for my clients, not just a few clicks on a mouse , but many many hours finding them choices and giving them real information, ( previous sales , taxes , services, neighbor values, etc.) about place they are interested in. I spend the time they don’t have because it is my job and they don’t have the time . They have there own jobs. That being said I have had more that one client change agents or decide not to buy after I have spent all that time and it sucks! Some, the nice ones who value what I have done for them will offer to pay me , others just don’t get it. Imagine going to work one day and having your boss tell you he is hiring someone else to replace and not even paying you for the last weeks or months you have been working for him. How would you feel then ?
    It is easy to see why Realtors quit or get lazy about doing there job. What is really wrong is dual agency .
    If selling agents were not allowed to represent buyers and marketing to them in order to get double commission, buyers would be looking for an agent to work for them and understand the value of having one .

    • Just a dude

      You work real hard because” They have there (?) own jobs”. I’m sorry, but if the competency of 2nd grade English of my realtor is really that low, then I would be worry about this realtor’s ability to work under stress when things don’t go smoothly.

      Not to knock you, but come on! How come people these days can’t spell, or even understand that “there” and “their” aren’t even the same thing? They’re homonyms; they sound the same but they have totally different meanings.

      You want to create a good image for yourself, don’t you? Isn’t that a part of how realtors get work? To show that they’re capable and intelligent people?

      Don’t take anything I said personally. I’m just trying to make you look smarter.

      • Just another dude

        “…then I would be worry…”

        HAHAHAHAHAHA!
        You should check your own grammar and spelling before you start talkin’ smack, dude.

  • http://realbigisland.com Hawaii property finder

    I do not ask clients to sign a buyers agent agreement because they usually don’t feel that it is in their best interests . Maybe it isn’t , but having a buyers agent working for you certainly is. It is amazing how many people believe that they should contact the seller of a property they are interested in, that somehow that person will give them all the information they need and help them get the best price . I work really hard for my clients, not just a few clicks on a mouse , but many many hours finding them choices and giving them real information, ( previous sales , taxes , services, neighbor values, etc.) about place they are interested in. I spend the time they don’t have because it is my job . They have there own jobs. That being said I have had more that one client change agents or decide not to buy after I have spent all that time and it sucks! Some, the nice ones who value what I have done for them will offer to pay me , others just don’t get it. Imagine going to work one day and having your boss tell you he is hiring someone else to replace and not even paying you for the last weeks or months you have been working for him. How would you feel then ?
    It is easy to see why Realtors quit or get lazy about doing there job. What is really wrong is dual agency .
    If selling agents were not allowed to represent buyers and marketing to them in order to get double commission, buyers would be looking for an agent to work for them and understand the value of having one .

  • Just a dude

    If your job is to be a realtor, then you should EXPECT that no everyone who comes to you for a tour is going to buy for sure. Some people just want to sniff out and see what’s out there. If you’re not generous enough to show them around, then be upfront about it. A contract such as a BA just makes things more complicated when the buyer and the agent end up not  matching but for one reason or another have a legal piece of a document between them. It’s unnecessary to be tied down like this. Have fun being a realtor. If you’re any good at what you do, when the buyer decides he wants to buy, he will naturally come to you for a chat. It’s as simple as that. You can’t expect to be compensated every single time.

  • http://visumrealestategroup.com/blog/luxury-seattle-homes/ Luxury Seattle Homes

    I  agree that buyers do not need to sign a contract if the agent knows what they’re doing.  A contract is simply a way to lock a buyer in if he or she is unsatisifed with the work.  A confident firm should give the buyer the option to walk away at any time he or she wants.

  • Manny Mimoso

    The bottom line is that both agents (buyer’s and seller’s) both benefit from selling the home at the highest price possible. How does this prevent collusion? Because of their “code of ethics”? I just signed one before doing my homework and I already regret it its been 2 days. I received a text message late at night telling me we can’t go see any homes tomorrow because my agent is busy. I’ve been waiting for his response for a few days. A TEXT MESSAGE? really? I will never again sign a BA. I’ve been doing all the work, and he’s going to split commision for having a pin number and name tag? Come on now

  • http://www.leadplace.com Ray Schmitz

    Signing a buyer agreement is a great way to make sure the agent is reallly working for you.  The best agents will make it easy for you to get out of it if you are not happy with them.  In fact, what consumers seldom realize is that good agents effectively fire consumers all the time.  The buyer agreement is a good way to retain a true professional.  At least it works that way here in New York City, where almost no agents are evening willing to offer such an agreement.

  • publicdefender

    You real estate agents are worst than used car salesman. I’ve been in the landscaping and property maintenance industry for the past ten years and put together hundreds of landscaping and maintenance bids, all of which take hours of work, gas money, and time away from my personal life. Although it can be frustrating, I know that it is a part of the business that I may not always get the sale/job. Expecting someone to sign a buyers agreement before they make an offer on a home that you have shown them is like a used car salesman telling a prospective buyer that any car they buy, no matter if it’s on their lot or not, must be done through them so they can receive compensation. I don’t expect to get the job every time someone calls me for a bid. You should not expect to make a commission off of every person you talk and meet with. Unless you have a personal realationship with an agent, only buy from the listing agent even if you have met with another realtor previously. Don’t agree to sign anything until you are making an offer. And if you do sign a buyers agreement only agree to the agent receiving compensation on properties that real estate agent actually showed you. There are two options: 1) on properties shown & 2) on all properties you look at for the next 180 days. Real estate agents are slimy…..Be sure to put on your gloves

  • doug316

    Next time I go on a job interview, I’m going to make the employer sign something that says that they can’t fire me for one year, and if they do, they’ll have to pay me anyway. Think I’ll get the job?

    This sort of contract should be illegal, period. Signing an agreement where cannot fire the agent is foolhardy to say the least, and the only reason they get away with it is because the less savvy and shrewd among us don’t know any better or are too lazy or afraid to push back. This is not professional as is suggested–it’s as bad or worse as the completely ridiculous assertion that an agent can fairly represent both sides of a transaction. Come on.

    Yes, agents are valuable and deserve to get paid. But many also deserve to get fired if they do not perform, just like anybody else.