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Erin Joynt, Real Estate Pro in Westminster, CO

Colorado agents/brokers: When working with a buyer, when do you have them sign the Exclusive Right To Buy contract? What do you say to them?

Asked by Erin Joynt, Westminster, CO Mon Apr 9, 2012

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We are an exclusive buyer agency office, which means we only work with buyer and we always work as agents...never as transaction brokers. In a sense, this makes the whole discussion very easy for us, since we're in a positive of saying that if they want to work with us, we can only do that if they sign an agreement.

With that as background, our approach is just to explain why we won't work as transaction brokers, and one of the more direct ways we do that is to begin with section 6 of the "Exclusive Right to Buy Listing Contract" which reviews an abbreviated list of things that a buyer agent is required to do on behalf of the buyer and that a transaction broker really shouldn't be doing. If you explain that you'd rather not work with someone than to be put in a position where you can't promote the interests of the buyer, can try to help them negotiate price and terms that they want, and counsel them as to the material benefits or risks of the transaction, they sense your commitment to them.

The other thing we do...and have done since 1992...is add a clause to the agreement that gives them the right to terminate it at any time they want. We've had only a half dozen or so buyers terminate over those years...mostly because they just quit looking for property. In any case, this...combined with the intro in the prior paragraph...generally eliminates any discomfort with signing the buyer agency agreement. It communicates to them that we're signing this so that we can do the job right...and that doing the job right...not just getting a commission ...is what matters most to us.
1 vote Thank Flag Link Mon Apr 9, 2012
Yes, unless they are investors, then I have them sign a non exclusive. I tell them "this is how I work" explaining that it is hard for me to commit myself to working for them if they won't commit to me. Simple logic.
2 votes Thank Flag Link Mon Apr 9, 2012
If I am out with buyers for months on end, I am working for them. However, in our state, unless you have a contract (Buyer Agency), you are automatically a subagent of the seller. I don't want to represent the seller. When I explain what my limitations are as a subagent of the seller, they understand and are more than happy to sign. There really is no good reason for them not to unless they just don't care to be tied down to one agent in which case, I don't care to be tied down to them.
0 votes Thank Flag Link Tue Apr 10, 2012
Erin, I was in your shoes when I first got licensed 9 years ago, so I completely understand where you are coming from. However, you need to work to get answers to questions like these through training and mentorship in your own office.

It truly is the responsibility of any brokerage to ensure their agent's questions are answered and they are properly equipped to work one on one with clients. You are also entitled to receive this type of education when you hang your license somewhere.

My recommendation is to find training opportunities/classes offered that specifically deal with Working with Buyers and this will most certainly be addressed. Another option is to work with an experienced agent as a one-to-one mentor.

No disrespect meant in not being more helpful, but I come from the perspective of a regular trainer and mentor in our office and I know I'd be pained to find that our agents were going to agents outside of our Market Center on Trulia to get their questions answered. :)

Best of luck!

Robyn Phipps
Keller Williams Avenues Realty LLC
303-503-5000
robyn@robynphipps.com
DenverWestHomes.com
0 votes Thank Flag Link Mon Apr 9, 2012
I should have said, that I like to hear what others outside my office are doing as well. Thank you for your response!
Flag Mon Apr 9, 2012
I have spoken with others in my office, I just like to hear what others are doing as well. It broadens my knowledge and perspective!
Flag Mon Apr 9, 2012
I briefly explain that by law every agent must present this to every buyer at the beginning of the relationship and tell them one great agent is all you need!
0 votes Thank Flag Link Mon Apr 9, 2012
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