5 Reasons to Sign a Buyer's Agent Agreement
(Updated in August, 2021)
You Get a Whole Different Level of Service
The words “Client” and “Customer” may seem pretty clear cut, but in real estate they mean completely different things.
Customers are not entitled to representation. A salesperson or broker cannot make any decisions, no matter how beneficial they may be, on behalf of a customer.
A Client has Representation. Representation is the authority to handle a legally binding matter on behalf of another person. An agent has responsibility to his client to get the best possible deal and protect the interest of his client up to the limits of the scope of his license.
As a “Client” you can now experience the full privileges of a close working relationship with your Realtor® where your interests are first and foremost.
This also protects the agent from anyone who would use, and benefit from services provided, without fairly compensating the professional doing the work.
You Know They Work for You
There have been instances where Buyers realized at the negotiation table the Realtor® was actually working for the Seller, not them. They did not have a true advocate to represent their interests with a contract. The only way to protect your interests is to create a binding agreement that protects both parties.
You Have One Person to Work With
Some Buyers don’t want to feel they are being be “tied down” to one agent, or they mistakenly think that getting several Realtors® to work with them will get them a better deal. However, a Buyer working with several sales representatives will quickly be revealed and will not be taken seriously by any Realtor.
By working with one agent, you have one ‘hub’ for all your searches and information and you know you are taken seriously as a buyer.
The Agreement is Negotiable
You can specify any length of time, any city or a general area, a specific type of property like industrial, office, or Multi family.
The Price is Negotiable and Often Ends Up FREE
The Buyer’s agent is paid by the seller in almost all cases. That’s called a co-broke.
The commission does vary from property to property depending on the listing agreement. If you agree to pay your agent 3% of the purchase price or gross lease amount and the co-broke is also 3%, then you end up paying nothing. If the co-broke is 2% then you only pay 1%.
Paying high commissions can actually be a good thing for you. The higher commission you agree to, the more you can be assured that your agent is working hard for you and is not swayed by an unusually high co-broke or doesn’t want to bother showing you a property with an unusually low co-broke.