5 Reasons to Sign a Buyer Representation Agreement
Buyer’s Representation Agreement
If you’ve started looking for a home, and a real estate professional to assist you, your buyer’s representative may ask you to sign a Buyer Representation Agreement.
What is a Buyer Representation Agreement?
A Buyer Representation Agreement is a legal document that formalizes your working relationship with a particular buyer’s representative. This agreement will detail what services you are entitled to, and what your buyer’s representative expects from you in return.
While the language used in the document is formal, homebuyers should view it as an important and helpful tool for clarifying expectations, developing mutual loyalty, and most importantly, elevating the services you will receive.
Why should you sign it?
Receive a higher level of service
If you’ve formalized an agency relationship with a buyer’s representative, you can expect to be treated like a client instead of a customer. What’s the difference? Clients are entitled to superior services, relative to customers.
While the details vary from state to state, and from one buyer’s agent to another, you can generally assume that being a client means that you’ve formed a fiduciary, or agency, relationship with your buyer’s representative.
Get more without paying more
In most every case, home sellers have already agreed to pay a buyer’s agent’s commission. If they haven’t, you can ask your buyer’s representative to avoid showing you any such homes, which will prevent you from being responsible for your agent’s commission.
You can still view the homes as stated above, however you will need to factor your agent’s commission into any offer you may write. While buyers rarely pay real estate commissions, this is an important detail you will want to discuss with your buyer’s representative and ask that they clarify these issues in their representation agreement.
A Buyer’s Representation Agreement clarifies expectations, helping you understand what you should and shouldn’t expect from your buyer’s representative, and what they will expect from you, which usually centers on loyalty.
Agency relationships are based on mutual consent
While most representation agreements specify a time period, they can be terminated early if both parties consent. Most buyer representatives are willing to end the agreements for as little as one day, for the purpose of giving both parties a brief trial period to explore working together.
Strength as a team
When you and your buyer’s representative work together within a formalized agency relationship, you have created a team dedicated to helping you achieve the best possible home buying experience.