The Buyer’s Representation Agreement
With a Buyer’s Rep Agreement., you are considered to be a client. Without a Buyer’s Rep Agreement., you are considered to be a customer. And as a customer, the advice that I can provide to you regarding houses is somewhat limited. This chart shows the difference…
As you can see, it is important that you establish yourself as a client to get full representation by your real estate agent. Having a Buyer’s Rep Agreement. with me benefits you by protecting your confidentiality; allowing me to provide you with professional advice and opinions on prices; allowing me to negotiate based on your best interests; and giving you a partner who is loyal to you.
And the Seller still pays the real estate commission, even when you have a dedicated real estate agent. They agree to do that when they agree to let their home be listed on the MLS.
This is agreement is for your protection; it is not meant to “tie” you to me. To prove this, and because I’m confident that you will enjoy working with me as your real estate agent, I put a Release Clause in Para. 17 stating that you can cancel the agreement at any time for any reason.
NOTE: I only work with Buyers with whom I have a Buyer’s Representation Agreement. This just simplifies things because then I don’t have to worry about whether I’m giving you too much information (or properly representing the Seller). As my client, I can give you my full professional opinion at all times and answer any and all questions that you have.
Once you have a Buyer’s Rep Agreement in place, you should always state that up front to other real estate agents (at open houses) and builder’s sales agents (if touring new home models) because, by law, they need to know that you have representation.
Remember: My job is not “just” helping you find a house to buy…there are over 100 tasks that I perform for you during the purchasing process! I’m looking out for you every step of the way and keeping my eye on the Listing Agent, the Seller, the builder (if applicable), the lender, the inspector, the title company…with a Buyer’s Rep Agreement. I’m on your side because I’m your agent.
Not only do I help you find a house, I help with price analysis and negotiation, legal paperwork, inspections, repair negotiations, home warranties, hazard insurance, surveys, appraisals, title commitment, and so on.