I was a buyer rep for a Relo team for 4+ years and I did not wait for them to get to town to bring it up. At the first phone conversation, I would let them know we would meet first to get some of the legal stuff out of the way. Start with the IBS. Then the buyer rep agreement. I offered to email it to them in advance as well so they could come prepared with their questions. When presenting the IBS, I always skipped to the special provisions page first and I put, "the buyer or agent may cancel this agreement at any time with 24 hours written notice" and I explained that if they didn't want to work with me or if I didn't want to work with them, it was truly best to just part ways (the protection period stays in place so anything you've shown them is still covered). The other thing that helped was for the really hard sells was to do ONE freebie. I would take a buyer in my car ONCE without a buyer rep. After that, they either sign or move on. It becomes a numbers/time game and I learned early on that wasting my time was not the way to do this business. Also, the more open and up front you are in explaining how the real estate business works, the more likely they are to commit to you. I make sure they know who pays the commission, what my job is, how I work and when - totally set the expectations up front so there are no questions.
Hope that helps! I'm always available to help if you have questions. Being a buyer rep for so long taught me a ton!!

Wed May 14 2008, 19:45

I like Camille's response. I'll add that you might also ask them if they read and understand the IBS, and understand that you will be representing the seller if they have not obligated you to act as their agent. Leave just what that means up to them. If they ask what that means, explain that you have to be fair and honest with them, and ask whether they would also want you to provide insights that might help them get their best deal. If they say yes, sign them.

Fri May 2 2008, 14:52

Trish: I always show them the form and if they don't want to sign I say "this time is on me but to take you out again I will need you to sign." It makes it easier just in case either one of us wishes not to continue the relationship after the first outing.

Mon Apr 14 2008, 14:02

Can you at least get them to sign for any homes you show them the first weekend?
Also let them drive and spend their gas money. Have them pick you up at your office.
That helps cut the serious from the tire kickers.
When you're sending them listings, send them your buyers rep agreement.
Tell them to meet you at the office first and give them your buyers presentation on how important the work you will do for them is. Have them sign the buyers rep there before you go out. Good luck.

Tue Apr 1 2008, 11:48

Hey Trish...

You've got a GREAT problem on your hand!

The way I look at it is.... when you go to a listing appointment and get the listing... don't you have a written representation agreement? You are ONLY representing that seller and putting a fiduciary on them correct?

Why can't it be the same way for buyers? It HAS to be that way!

If you are going to be working for them, spending your time, money and expertise... then why not educate them on how important it is to have an agreement!
Besides all the legality, IRS reporting issues and all those other technical reasons... I will flat out tell my clients this....
"Ok.. I've got ALL of my other clients under representation agreements which means I am now held to the fire to make sure I am ONLY working for them. They get my full devoted attention and resources first and ALL the true DEALS that come across my desk first!!!.... but you don't want that? Then you are not serious, and you are the weakest link... Goodbye!" lol...

ok.. i don't quote them the cheesy game show line, but you get my drift?

Fri Mar 28 2008, 10:25

You risk spending a lot of money and time with clients who are not willing to commit to a buyer rep agreement. As Jeff stated, the client can sign the agreement daily. If you explain how agency works in Texas I would think you could bet 100% of those agreements signed.

Fri Mar 28 2008, 09:28

I am still fairly new to Real Estate and have had several out of town clients who would not sign an agreement. I showed them 10-20 homes and when they came back, they had signed with another Realtor to buy a property I had showen to them. I explain to them the importance of having a signed buyer agreement before we start the process.

Fri Mar 28 2008, 09:15

Before showing any properties, I would sit down with them. They need to know more about you as an agent, and you should know more about them as a buyer. People feel more comfortable committing with someone when they know that person . Then make sure they are qualified, then have them sign the Buyers Rep. Agreement. It will help you and the buyer have a good start.

I hope this helps, and good luck!

Thu Mar 27 2008, 21:27

I agree with J.D. That is one technique I have started using and have the most success with. The IRS Record Keeping reasoning seems to be something that most relate to quicker. I also, IF they hesitate at first, tell them that we can make the agreement for the day/weekend. If after that length of time, they feel that I am doing a good job for them and they have confidence in my services, then we can extend it for a longer period of time. This also works best for me, if at the end of that first time frame, I MAY NOT WANT to work for THEM...and it's my way out as well.

Thu Mar 27 2008, 21:18

Sign prior too their arrival I would have them qualified before I walk out the door. Good luck!

Thu Mar 27 2008, 20:48

If they are uncomfortable with signing one try and see if they will sign one for a day and if they like your services you can extend it for a month or two.
This way they may not feel "trapped"
J.

Thu Mar 27 2008, 19:46

I have them sign during my initial interview at the office. If they are serious buyers and would like to get in my car and use my gas an area knowledge then they sign. IF they don't sign then I bid them farewell. Our Buyer's Rep agreement can be canceled at any time by the buyer. I explain that I use it as a means to document my expenses for the IRS (which is true). I also attach the MLS sheets of all the houses we look at (procuring cause). Lastly, I consider anyone that does not want to sign to be a security risk for myself and my wife.

Ours also has a provision that the commission they agree to pay will be reduced by whatever amount the seller gives us.

One of my selling points is I also have a data base of every FSBO on the market and as we drive we might see one they would like to look at. Having that document makes knocking at the door where the sign says "No Agents" a piece of cake.

Most agents around here would kill for a problem like yours "a lot of out of state buyers" LOL.

Good Luck to You

JD “Dan” Weisenburger, GRI
Broker-Associate REALTOR®
Vanguard Realty, Inc. GMAC Real Estate

Thu Mar 27 2008, 19:36