Real Estate Forums

SEOWolf · 05-22-2006, 12:18 PM

With the high cost of gas a Buyers Agency Agreement make more sense than ever.

Most REALTORS® I know have had many experiences of spending days driving around potential buyers previewing homes only to have the buyers call another REALTOR® from a yard sign or add in a Real Estate magazine at the hotel.

If you are going to make an investment in these buyers, I think it is just a good business practice to ask a buyer to buy ONLY through you if they are going to purchase a home in your market.

I don’t even advocate (or condemn) the practice of a cash retainer collected from the buyer at the signing of a Buyers Agency agreement, but I do feel however that if you are going to invest your time and expenses you should have some kind of commitment from the buyer in writing.

I feel strongly enough about it that I am contemplating refusing to show buyers any homes that do not sign a Buyers Agency Agreement with me.

Any thoughts on the subject?

~VegasMack

REMAX LV · 05-22-2006, 03:40 PM

I agree!!! As an agent myself who has spent countless hours and dollars on gas shuffling buyers around. Looking back most of them just wanted to "look around" one went to a for sale by owner. I think that buyers agency agreements are a great idea although most agents feel uncomfortable having their clients sign them. I think we should strike up some gas usage agreements for people who just want to "get a feel for the area".

Las Vegas Real Estate · 05-22-2006, 03:52 PM

What a great concept! I had never really taken that into consideration before. However, last summer when gas prices were high, my pest control company actually raised my rate $3.00/ month! I guess if they are doing it, then why shouldn't we do the same thing as Realtors?! With as quickly as the Las Vegas real estate market is expanding, it is not uncommon to drive from one end of town to the other for a client!

CanadianConnection · 05-22-2006, 07:11 PM

I have to agree. However, Buyer Agency Agreements not only ensure our client's loyalty but the agreement also works well in the buyer's favour!!

As a buyer under agency with me, I really roll out the red carpet. If they need a lender or financial counselling, I have a network of top-notch brokers who know the calibre of service I expect. My buyers get the best market rate from some of the best people in the biz. I also add them to an automated search which sends them new listings before they hit the public MLS. One phone call to me and we're in! I really make it simple to make thie biggest financial invest one will ever make. The only catch--you must be under agency with me and want to work exclusively with me. When I ask my clients to be loyal, I make sure they are well taken care of. Sound like a fair deal?

I know sometimes, people are hestitant at first but once they hear testimon ials from my past clients and actually get started, they really find a lot of value in working with one agent who can evolve and adjust to thier unique needs! It's a win-win in my opinion.

Portland Real Estate · 05-22-2006, 08:28 PM

I agree, though I find it rather difficult to execute in a market where most agents do not ask for an agreement. It's just too easy to locate another hungry agent who's willing to chaffeur endlessly. I remember years ago before I became an agent, a Century 21 agent asked me to sign a buyer's agreement before I get to know her. I refused to sign for I didn't know if I wanted to get stuck with an agent whom I might not like. Or worse, an agent who might not work to my best interest. I remember asking her if I absolutely had to sign and her answer was no. So I didn't. In retrospect, I'm glad I didn't for she was awful.

SEOWolf · 05-23-2006, 05:03 AM

Max,

I think the best way to get around a buyers reluctance to sign the Buyers Agency Agreement is Als’ approach.

Because most states now require that we get an Agency Disclosure signed by the buyers, Al uses that to ask them “do you want me to work for you, or the Seller”. Most of the time the Buyers want you to work for them.

In most cases we are in a “Sellers Agency” agreement representing the Sellers or a sub-agent of the Seller by showing their listing.

We are unable to disclose certain things if we are an Agent or Sub Agent of the Seller and we are under obligation to negotiate on behalf of the Seller. We DO NOT have these restraints if we represent the Buyer.

Buyers Agency Agreements are a win – win proposition for the Agent and the Buyer.

I think agents just need to explore better ways of presenting Buyers Agency Agreements to potential Buyers as Al and CanadianConnection have.

It’s the best way that I know of to ensure that you are compensated for your time and efforts.

~VegasMack

Las Vegas Homes · 05-23-2006, 11:28 AM

Great points! I think that if you are doing your job as a Realtor, then most clients will not have any issues with signing a Buyer's Agency Agreement. On the other hand, if someone will not sign one, and you are doing your job, then as a real estate professional you may need to re-think your standards and guidelines! Here in the Las Vegas real estate market there are more than 14,000 real estate agents. Why would I want to go driving someone around knowing that they are not loyal and could choose another agent any other day of the week?

Portland Real Estate · 05-25-2006, 07:14 PM

I actually sent out an email to all the Prudential agents here in Portland area (there're about 1200 Pru agents). Only 2 people asked their buyers to sign an agreement. Interesting thing that neither one of those two were high producers.

I agree that a contract of some sort needs to be in place somehow. I'll definitely try out Al's approach. Will report soon!!!

CanadianConnection · 05-27-2006, 10:12 AM

Quote:

Originally Posted by Portland Real Estate

I agree, though I find it rather difficult to execute in a market where most agents do not ask for an agreement. It's just too easy to locate another hungry agent who's willing to chaffeur endlessly. I remember years ago before I became an agent, a Century 21 agent asked me to sign a buyer's agreement before I get to know her. I refused to sign for I didn't know if I wanted to get stuck with an agent whom I might not like. Or worse, an agent who might not work to my best interest. I remember asking her if I absolutely had to sign and her answer was no. So I didn't. In retrospect, I'm glad I didn't for she was awful.

Portland, just because others in your market are not using this tool, don't let that discourage you. In BC, we all must go over agency and our Working With A REALTOR brochure prior to going out or writing on a property with a client.

Many agents are uncomfortable with how to approach this simple brochure. Maybe you could try using the same explaination I use for both WWR and Agency agreements... "As a professionally licensed agent, I am required by law to explain agency relationships to you and have you acknowledge that I have done this..." After I answer all thier questions, I have them sign to witness that I have indeed gone over this step and file it with my office.

Many people are surprise when I do this right when I meet them because 90% of the other agents they have dealt with never took this step. It sets me apart as a professional who is serious out the regs and gives them insight that when they work with me, they are working with some who takes thier business very seriously--which I do!

The next document I pull out is the Agency Agreement and I explain "....this agreement HIRES me to work for you, to negotiate with ONLY your interests in mind no matter who else I may be working with...this makes me 100% legally accountable to you; it makes me responsible to return all calls immediately, explain all aspects of home buying and help you find the professionals you need to make an educated decision; to activley search for a home fitting your unique needs..." I go on to explain my Buyer Services in greater detail and give them a visual presentation, then I ask them if they are interested in HIRING me to work for them. Most are eager to sign up with me at that point...if someone is hesitant, I try and find out what thier concerns are and we go from there. If they don't sign up, I don't waste my time.

Once people understand I am not here to be used, that I take this very seriously and roll out the red carpet for my clients, I rarely have a problem getting them to work with me. It weeds out the flakey buyers who like the idea of buying a home but just aren't in a postion to actually do it because I mean business and they know they'd be wasting my time.

Since I packaged my buyer services, I've never had a problem with clients 'HIRING' me under agency. Everyone who lists a house signs a contract outlining services and the details, why should buying a home be any different?

Cheers,