Why Should You Sign a Buyer’s Rep Agreement
What is a buyer’s rep agreement?
If you are in the process of buying a home, and selecting a real estate professional to assist you, you may be asked to sign a Buyer Representation Agreement – or Buyer’s Rep. This is a legal document that lays out the working relationship between you and your agent. It details the services that you are entitled to and what your agent’s exectations are of you in return. I like to think of it as way for me to ask my clients for their loyalty while explaining to them my services. The language is very formal but you, as a buyer, should not be intimidated by it. It is an important tool for clarifying expectations.
Why should you sign it?
1- If you sign the form, you will be treated like a client, rather than a customer. This will allow you access to certain information and advice that you would not have if you are only a customer. Once you enter into this agency relationship, you have formed a fiduciary relationship with your agent and he/she must put your interests first and protect your confidentiality. ASk you agent to explain any questions you may have reagrding the differences between a client and customer. If he/she cannot explain the differences, RUN!!
2- It clearly lays out the payment plan for your agent and how/when you would be responsible to pay some or all of it. This is something you need to know. Is it not? Never assume that the seller will pay all of the commission. Open communication about this one fact will save you much frustration should an issue arise.
3- Two-way loyalty is established. This again, opens the communication lines and helps to avoid misunderstandings. Clearly set expectations and goals go a long way in creating a smooth transaction in real estate.
4- Agency relationships aare based on mutual consent. Most buyer rep agreements specify timelines for the agency relationship. However, they can be terminated early if both parties consent. Most agents will be willing to end the agreement if the relationship is not going well. Many will even limit the agreement to a small of a time period as one day to allow both sides to get to know each other and explore working together before asking ofr a long term commitment. Dont be bashful, ask your agent if they are willing to do this.
5- Forming a team. Believe me, you are much better off with an agent that is acting on your behalf and with your best interests in mind than you will be alone in the process or with an agent that pretends that they are representing you when legally and realistically, they are in fact acting as a sub-agent to the seller. Please find a good agent and willingly enter into an agency agreement with them.
If you are looking to buy or sell a home in the Katy, TX or West Houston areas, I would love to help you. Please go to my website at www.katyfamilyhomes.com or give me a call and we will find take care of your needs. You can also follow me on facebook at http://bit.ly/bKOo4W or twitter at www.twitter.com/stephenreddell.
Filed under: Buyers, Katy Family Homes, Sellers
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