My agent wants me to sign a buyer's representative agreement. Why should I?

By
Real Estate Broker with Derek Taylor Realty Group - RE/MAX Trinity 0589416

I was working with a client today who is really excited about shopping for a new home in Burleson, TX, and who can blame him?  He has been looking on the Internet, driving around and searching magazines, newspapers etc.    He did lots of research, downloaded apps to his iphone and even bought a book.  I can tell from talking with him the last few weeks that he was nervous about the step he was going to make, and not sure how everything would fall into place for him. 

For him there was a piece missing, and I asked him why he is so nervous.  He told me he has spoken to many other Realtors in the area about the houses they had listed and even went to see a few of them.  I also asked him if he had chosen one of them to represent him in the purchase of his home.  For him, just like many people, this was the last item on his list.  He wanted to find the right home and then choose a Realtor to help him buy it. 

Burleson homes for sale

After selling my first home, I understood the value of a good Realtor.  That is why I became one.  In today's self sufficient, information overloaded, fast paced society, a Realtor's role has changed.  Sure, you can surf the Internet to look for houses, mortgage brokers, title companies and other real estate businesses.  You can buy foreclosure lists and books and watch real estate TV shows.  It's a do it yourself world.  Who needs a Realtor?

That is a good question.  For my client today, he realized he needed a professional to help him when he finally made the decision to buy something.  Once you commit yourself to buying a new home to meet your growing family's needs, reality slaps you in the face.  It did me.  He realized he needed someone to represent him, and assist him to get the most money for his current home.  He needed help negotiating the pitfalls to buying a new one in today's market.  Once we talked, I explained all of the services I provide.  I showed him how it can be a pleasant process.  He is moving forward with his life.  He has earned the ability to purchase a bigger house with more land.  It's his time to shine.

So now, I am hired to be his realtor and I am grateful.  I pull out my Buyer's Representative agreement and start going over it with him.  None of the other realtors in Burleson, Tx had asked him to sign one of those and why should I?  Don't I trust him?

I explained that a Buyer's Rep Agreement is an employment contract.  He was hiring me to do a job and expected me to do it well.  I showed him where the broker's responsibilities were clearly described.  I asked him how he would feel if I didn't perform these tasks for him.  What would happen if I abandoned him in the middle of the process to help a client that would offer me a bigger commission?  You see, It's not about trust.  It's about business and the client is the boss.  He is Jerry Jones and I am Tony Romo.  Jerry would not hire Tony without a contract and Tony would not work for Jerry without one. 

Burleson Homes for saleI think that the most important effect of the Buyer's Rep agreement is the official status change from customer to client.  Once the agreement is signed, our relationship is defined as an agency relationship.  I have more responsibility and I am more free to give advice to a client than I am to a customer.  I am duty bound to represent the best interest of my clients over any other interests I might have.  I provide representation, not just services. 

I am glad to say, I went home with a new buyer client AND a new listing client as well.  Now one of you please buy it!  I'll have the Buyer's Rep Agreement ready for you.

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Topic:
ActiveRain Community
Location:
Texas Johnson County Burleson
Groups:
Realtors®
Tags:
burleson texas homes for sale

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Ambassador
780,632
Susan Emo
Kingston and the 1000 Islands Area
Sotheby's International Realty Canada - Brokerage

Congratulations to you on your new client and your new listing too!   But more importantly, congratulations to you on being the only Realtor professional enough to insist upon a Buyer's Representation Agreement!!!   I don't work without them either but I am constantly amazed at how many do.   Your explanation of same put your new client at ease and allowed him to move forward.

January 16, 2010 10:24 PM
Rainer
48,817
Clark Hitchcock
Realtor - Fraser Valley
Re/Max Nyda Realty Inc

Thank you for the great post, and explanation. I have not used them but it sure would get rid of the uncertainty for the buyer and the realtor could throw themself totally into the job with this client.

January 16, 2010 10:57 PM
Rainer
361,535
Gary Swanson
RE/MAX Ideal Brokers, Inc.

Great post Derek.  After I've shown a potential client a house or two, and we know we can work together, I always get a buyer's agreement signed.  I feel it protects the client as well as myself.  It's a good way to help reinforce the trust we need to have in one another.

January 17, 2010 12:24 AM
Anonymous
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Rainer
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Derek Taylor Realty Group

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