Buyer Agency Agreement 2009
2009/07/27 Originally published in the Vernon Morning Star.
Most people are quite familiar with the term Real Estate Agent. They know it to mean that we are people who market properties and who show properties to prospective Buyers.
When you sell a property you pay the real estate fees. You pay them to both the Realtor® you are listed with and your listing Realtor in turn pays the Realtor® that has brought the Buyer.
Over the last few years Buyer Agreements between the Buyer and their Realtor® have become increasingly more common. These agreements resemble those that have existed for decades between Sellers and their listing Realtor®.
Buyer Agreements are logical because they commit in writing, that the Buyer is a true client of the concerned Realtor®.
So, why would a Buyer want a Buyer Agreement?
The answer is that a Buyer wants top notch service. If there is a committed loyalty to the Realtor® then that Realtor® knows absolutely that the Buyer will eventually buy from them (if they buy at all). In such an arrangement the Realtor® is happy to call those contracted Buyers with the information on hot new listings, price reductions etc. If the Realtor® has any doubt about the Buyers' loyalty and they have other customers who may need that same information then the Realtor® would be less likely to make that important call to the non-contracted Buyer. Please don't misunderstand me. A good professional Realtor® always tries to do a good professional job with all clients and customers. It's just that a contracted client may get the edge in certain circumstances.
There are people who are not loyal to any Realtor®. They get information when they call a Realtor®, but they get less service. Rightfully so. Why would any Realtor® deliver devoted service if they thought the Buyer was going to turn around and call another Realtor® or a private Seller? Realtors® work strictly on commission. Nobody else pays them for their time spent.
The Buyer Agreement lays out the fee the Realtor will receive. That fee almost always comes out of the sale proceeds. The paperwork keeps all this process in good order. So, nothing much changes. The Buyer agrees to buy through their contracted Realtor® (if they buy at all). It covers off buying through private sellers as well. Buyers can look at private Seller listings but because of the level of service their Realtor® is delivering, the Realtor® earns their agreed upon fee even though it is a private sale. The Realtor® does their normal job of providing detailed information on that private listing, usually well beyond what the private Seller is able to provide, plus the Realtor® negotiates the price. This can be a real plus as the Realtor® has the necessary negotiating experience. The Realtor® guides the Buyer through the legal aspects of creating a binding contract and the numerous details that occur on all real estate transactions.
The result is the Buyer and their Realtor® commit to one another. The Realtor® prioritizes the Buyer and goes to great lengths to assist the Buyer in every way they can. The Buyer in return receives good communication and service.
It stands to reason that Realtors® are most dedicated to those clients who are dedicated to them.
Jane Field works with RE/MAX Vernon. Jane has over 30 years experience in the Real Estate business. To suggest topics for future articles or to ask Jane questions, email or call 503-3755.
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