What is a buyer agency agreement? It is a contract between a Realtor and buyer, which says that when negotiating a home purchase, the Realtor will represent the buyer’s best interests. They will provide their buyer client with ADVICE and KNOWLEDGE that will help the buyer make the BEST decision when it is time to make an offer on a home.
Why Sign a Buyer Agency Agreement?
Without this contract, the Realtor represents the SELLER. This is important to know because of the fiduciary responsibility, which means who gets the financial loyalty in negotiations. If you want the best price and the most information about properties, an exclusive buyer agency agreement is the best way to accomplish this.
What Should the Client Do Who Signs a Buyer Agency Agreement?
An important aspect of the buyer agency agreement is how the buyer is responsible to the agent. The terms of the contract are negotiable at the time that the agreement is signed. Usually, the time frame of a buyer agency agreement is determined by the needs and situation of the buyer. You will want to allow for a reasonable time frame for your buyer agent to help you find the perfect home, and get the loan closed.
The first thing that a client should do with their buyer agent is to give an accurate and honest price range as a guideline, and give honest feedback after showings. If there are two buyers, they should be on the same page as to what they want, regarding price and amenities. If the buyers only want a white kitchen in a gated neighborhood, the agent should know this. If they qualify for a million dollars, but the final decision maker only wants to spend $600,000, then that needs to be clearly stated, and the agent should not be asked to show properties in the higher range. The more information given to the buyer agent, the more successful the home search will be.
Please remember that your agent is working for you, and should be called to escort you through all homes. If that is not possible, and you find yourself at an open house, the courteous thing to do is let the agent on duty know that you have a buyer agency agreement with another Realtor.
Remember that the agent at an open house will be representing the SELLER.
Afraid you will miss out if you see an open house you love getting a lot of traffic? Nowadays, it is possible for your agent to write an offer for you from another location and send it to be eSigned on your cell phone. They will be able to pull up neighborhood SOLD homes and other information you may not have access to see. Those national websites often have incorrect or out of date information, so sticking with your buyer agent will help you make a more informed decision. Just give your agent a call and you will not miss out on the perfect home .
Another big no-no when you have a buyer agency agreement in place, is to call another agent to show you a home because you do not want to “bother” your agent. It is part of their job description to help you see properties, so they will certainly NOT feel you are imposing. Always call your own agent.
How Do I Get Out of a Buyer Agency Agreement?
If you realize early on that you and your agent are not a good fit, they will probably be feeling the same way, and be just as interested in releasing you. Ask before viewing properties with a new agent. A mutual release will need to be signed.
Buyer agents provide their services free of charge and make no money until a home is purchased and closed, so if things are not working out, let them know right away. That way, neither your time or theirs is wasted.
Loyalty to your agent for a specified amount of time will make their job much more effective and efficient for you. Your buyer’s agent will work diligently to meet your home buying needs. This is their profession, and they will want to try to negotiate the best price and terms possible for you. With an exclusive buyer agency, your Realtor will be able to provide the best experience for you.
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