Why Buyers' Brokers Agreements?

(Guest blogger today is Emmett Brennan, Founder, Owner-Broker, Sugar Pine Realty GMAC Real Estate in Sonora, California.) The uses of Buyers’ Broker Agreements are tantamount to the success of a Real Estate consumer getting the representation and services needed from a real estate agent. Most real estate buyers go from real estate office to real estate office seeking the services of an agent only to find the lack of interest or response from the agent because the agent does not feel employed or empowered to put a lot of time or effort into the research needed.

The ability to determine the buyers needs, wants and qualifications are critical to the successful purchase. Without a Buyers’ Broker Real Estate Agreement, a real estate agent, when showing or representing properties for sale, does not yet feel employed until a sale is made, and no compensation is promised without an agency agreement. The services the buyer receives is therefore limited to the cursory read an agent has on their buyer's ability to buy and what their immediate needs are perceived to be. Counseling on those issues rarely takes place without an employment agreement or creation of an actual agency.

“If a buyer does not know where he/she is going they might wind up somewhere else” and they do! They wind up at the next real estate office only to divorce the last agent because he never asked for the job. The agent merely acted as a free tour guide for the next agent in line.

Especially important to the buyer is information on properties yet to hit the market and resources of For Sale by Owner properties that might fit the buyer’s needs. A Buyers’ Broker Agreement gives inducement to the agent to seek out that “hidden market” as the agent actually sees compensation for their hard work. By the way, compensation the buyer agrees to pay is normally offset by what the listing broker agrees to pay, and is a “credit” against that charge (if the property is listed with a brokerage).

So if you are a buyer, or a future buyer, who talks to a real estate agent you can trust, ask to see his Buyers’ Broker Agreement. Employ him or her to do a great job for you, and authorize him or her to actually go to work for you. Like the trades, real estate agents don’t get paid until the job is completed, and will usually get paid by the commission credited from the sellers’ agent (with or without a Buyers’ Broker Agreement). With a Buyers’ Broker Agreement you can get what you really need from the real estate agent: The best possible price, in the shortest period of time, with the least inconvenience to you. and a property that actually fits your needs. You want and deserve Premier Service®. Visit us at http://www.sugarpinerealty.com/ for more information.