Home Buyers Should Always Sign A Buyer Agency Agreement With Their Real Estate Agent
It happens more more often than you would think. First time home buyers spend countless hours with their real estate agent while searching for the perfect home. They discuss the buyers’ likes, dislikes, and must haves. They finally find the perfect property, purchase their new construction home, and move into their new space.
It is only six months after the completion of the sale that they realize that they could have bought another home, with a similar floor plan, that was built two years ago, and only a mile away from the kids’ school, for much less than what they paid for their current home. To make matters worse, they had stressed the importance of being near the kids’ school to their realtor. What happened? Did the realtor really look out for their best interests?
If all home buyers would take the time to enter into a buyer agency agreement, it would ensure that the buyers will receive representation that protects the best interests of the buyer. Oftentimes real estate agents will attempt to make a buyer pay more for a property because sellers usually pay the real estate agent’s commission. The only sure way to guarantee that the real estate agent is truly representing the buyer is with a legally binding contract, or buyer agency agreement.
A Buyer Agency Agreement Protects Both the Home Buyer and the Real Estate Agent
Not only does a buyer agency agreement protect the buyer, an exclusive buyer agency agreement will also protect the real estate agent. Many times, a real estate agent will help a home buyer through many phases of the home buying process. They may refer them to a credit specialist, introduce the buyer to a mortgage lender, and spend countless hours helping them search for the perfect home, only to have another real estate agent present an offer on behalf of the buyer.
When this happens, the first real estate agent is not compensated for any of the work that was done previously. In these instances, it may not be the buyers’ fault. Many first time home buyers do not understand how the real estate industry works.
I always explain the importance of a buyer agency agreement to all of my buyers. It is not to force them into something–it is to protect all parties, so that we can work together efficiently to make the best possible home purchase!
Let Me Get You Those Keys,