Providing a market analysis on the property you are interested in.
Negotiating the contract.
Not only on price but terms like possession, down, financing contingencies,
Inspection contingencies, title contingencies, disclosure contingencies, neighborhood review, lead based paint if built before 1979. Septic if applicable. The list goes on and on at least here in Washington.
Making sure all the i's are dotted and t's are crossed.
Referring a good inspector, negotiating the inspection items.
Reviewing the disclosure statement.
Setting up escrow and title.
Reviewing the title report.
Giving you access to a great lender.
Making sure all lender docs get to escrow.
Answering a myriad of questions during and after the transaction.
And most importantly representing you and your interests thru the transaction.
Not trying to be redundant, but... how does how it works in North Carolina help Gina? If you've read the prior responses, you'd know she lives in Illinois.
In Illinois, we are a designated agency state. You are presumed to be working for the person you're working WITH! So if you're working with the buyer, you're presumed to be working as the buyer's agent. Period.
My arguments against EBA's fall completely flat in those states where it's a requirement, otherwise your agent represents the seller.
I left that part of the argument out of my original post. It's difficult to represent all 50 states, but I figured that since Gina was in Illinois it was okay to respond in Illinois-ese.
Again, not the case in Illinois (please see Barb Krueger's valid explanation of designated agency below), where Gina, who asked the question, is from.
Illinois, where Gina is from, is not one of those states.
I believe that your RealtorÂ© wants you to sign a Buyer's Representation Agreement. In doing so that RealtorÂ© is making themselves responsable for you through the entire process of finding and selling you a home. Ask the RealtorÂ© to let you have a copy of " Understanding Buyer's Agency" so that you will know how you are to be represented.
Finding the home is sometimes the easy part, if you have a good RealtorÂ©; he or she will help you with the decision to buy and then represent you during the contract process making sure that you don't miss any of the steps, filling out the contract so that you are protected through the due dilligence process,inspections, financial contingencies and finially the closing. Locating the property is just the begining of the job .... the real work begins after the Buyer signs the contract.
I agree, a contract that's cancellable on 24 hour notice, is basically NO contract. Loyalty is earned, not written in a document. If I'm doing my job correctly, my clients are loyal. If they're not loyal, then I've done something wrong. Either I haven't serviced them in the fashion they were looking for, or I haven't educated them properly (if they end up buying a FSBO without my representation). The fault is mine, not theirs.
I agree, that clients like Gina scare me a bit, because, as you say "she's ready to throw us under the bus" already, in her opening statement. All the more reason to decline to work with her, rather than sign her to an agreement that locks us together interminably.
Loyalty breeds loyalty. Work hard for your client, they'll work hard for you. Offer value, dedication, trust, and it will be returned in spades. Yes, occasionally there will be an anomaly where a client you worked hard for, buys with someone else.
I had a buyer client who loved and adored me (okay maybe a stretch there), call me very excited to tell me "Guess what we've done!??"... and then went on to tell me that they'd written an offer on a FSBO, and now wanted me to assist with the balance. The FSBO seller, of course, refused to pay a commission of any kind, and I can't blame him. My clients were beside themselves... they didn't understand what had happened... they were prepared to walk away from the home they loved. I did not allow that... I stepped aside and let them purchase the house (and helped them in the background with the balance of the transaction)... no pay!
It was my fault! I hadn't educated them well enough about the process. And yet, now, I have one of the most loyal clients in Chicagoland. I saw them over the weekend, she's pregnant and they're getting ready to move and will want me to list their home. They've referred business to me from 4 of their friends.
No Agreement Necessary. The EBA is strictly a document that protects the pay of the buyer's agent. Loyalty, hardwork and dedication do it better. (IMHO)
Basically the agreement ties you to your buyer's agent, and guarantees that if you buy anything (listed or FSBO) you will pay his commission, if he cannot collect from the seller. I don't see any advantage for you (the buyer) to sign such an agreement.
If the buyer's agent is doing a great job and adding value to your search, you'll stick with him and buy through him. If he's not doing the job you'd hoped, you have the freedom to walk away. That's a great deal of incentive for the agent to do a great job!! No agreement necessary.
If you do decide to sign the agreement, make sure that it contains a "no-fault" 24-hour written cancellation clause, that allows you to cancel for no reason, and you owe the agent nothing.