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We call it buyer broker agreement here in Arizona. When I write a contract, get it signed as it is required paperwork. I believe in establishing trust with the buyers I work with. When they just meet me, not fair to ask them to committ and sign (some agents do and I understand why). More importantly, since I know I am not going to enforce the agreement, why get them to sign it write away (my wife is an attorney, we have our doubts how well buyer broker would hold up in court). To date (8 years) I have only been "burned" a couple of times, those people would have done it anyway. I dont know how many clients I would have lost at the beginning if I demanded them to commit and sign a buyer broker at the beginning of relationship. It works well for me, and I can sleep at night knowing I am not pressuring clients.
I know many will give me flack for this but I don't.
John McCormack, CRS
Personally I do not use it as if I am not taking care of the client they will go elsewhere and have gained more clients who have had one!
John McCormack, CRS
We always do
We do not. Just don't.
I will show one home without a Buyer Agency Agreement, but that is it. I explain how real estate procuring cause works and how we get paid. If they cannot commit to me, that is fine, but if they want to work with me they will have to sign it or I won't be showing them homes again.
I get a buyer brokerage agreement signed at the buyer consult. Why because it is required. Yes it does work!
Katie Mantelli Buyer Broker Agreements are mandatory in my State. They work when the buyer is educated properly.
No, I do not.
What I get is the buyer or seller to participate in one of the benefit programs I provide. If they are willing to leave money on the table, one should have reason to suspect their intention.
When first meeting a buyer as we should all do, I have them sign an agency disclosure form and a registration card. The registration card in addition to having some cursory information about the client and a list of the properties seen it also states that my firm is entitled to represent the buyer and collect a fee in the event that they purchase any of the properties seen with us.
This doesnt commit the buyer to only working with you, but it does protect you in the event that your buyer decides to work with multiple agents to view properties.
I always tell the potential client that I generally work with a Buyer's Agreement, as its the only way I can ensure I get paid. I do not; however, insist that they sign one at our first meeting. I'm willing to talk with them, help get them pre-qualified and show a couple of homes. After that we've built up a rapport and they're always willing to sign the agreement.