Home Buying in De Pere>Question Details

Marie, Home Buyer in De Pere, WI

Why do agents want me to sign a buyer agency?

Asked by Marie, De Pere, WI Sat May 3, 2014

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A Buyer's Agency is important. Once you sign that contract, that's the point a Realtor is working for you, not the seller. Up until then, all Realtors work for the seller. A Buyer's Agency also lets us negotiate on your behalf, and a lot more. Give me a call and we can discuss this in detail. 773.218.0502
1 vote Thank Flag Link Sat May 3, 2014
Elysia, I am glad you pointed this important fact out. I

n the State of TEXAS, until the buyer signs a Buyer's Representation Agreement, the agent, by law, is working for the seller. It is important to realize that Real Estate Laws are different depending on which state you are buying in. This is why it is important to use a REALTOR@ and not try to buy on your own.

Just like a Seller signs a Listing Agreement with the Company, not he particular agent, the Buyer needs to sign a Buyer's Representative Agreement with the company in order to protect themselves when they want to buy. You are entering into a binding agreement with that agent's BROKER, in which the REALTOR you are working with represents.

If you have more questions, please feel free to contact me at 214.707.1780.
Flag Sat May 3, 2014
Do some homework on the agents before you sign anything. If you don't like the agent, feel comfortable with their skill, experience, knowledge or abilities, find someone you can be confident in.
Agents are paid 100% commission. If you don't buy from them, they spend their time, money, gas, knowledge etc. for nothing. No one wants to invest in you, only to find out you walked into an open house armed with the information we've imparted to you, and bought from the listing agent. I've never had this happen to me, but I have spent hours and hundreds of dollars with buyer who for various reasons never completed a transaction with me.
I don't usually use buyer's agency agreements, but I'm also careful who I invest in. If you want a great agent to invest in you, it may be necessary to document your loyalty to them. If you're not sure, don't sign one, but don't expect every agent to give you their best under those conditions.
0 votes Thank Flag Link Sat May 3, 2014
So insure you understand their duty and commitment to you. SOME STATES REQUIRE A RECORD OF THIS DISCUSSION.

It is important for YOU to understand if the agent is an advocate of the SELLER, an advocate for the BUYER or is neutral in the transaction. You may be expecting an agent who if fully committed to protecting you. That what buyer agency accomplishes.

Also, it is important for you to understand how your agent will be compensated. The property you choose to buy can determine who pays your agent. If this is not covered FIRST, there can be real disappointment when you find you are on the hook. This allows you to advise your agent you do not want to see any real estate that does not compensate your agent fully.

Buyer Agency for your PROTECTION!

Best of success to you in your home buying adventure.
0 votes Thank Flag Link Sat May 3, 2014
Great question. The basic answer is that at some point you need to sign one to allow the agent to be your approved agent to represent you in a transaction. The laws say that to be a buyers agent you need to permission of the buyer and that document provides it.

The question you are asking, I bet, is why are they asking you to sign one now before you start looking around and the only answer is that the agent wants to "lock you int to using" that company. It locks you to the company, not any particular agent in the company, but to the company itself. This prevents you from getting mad at the agent and going to find another agent in another company. I don't ask my buyers to sign one until we write an offer at which time I must have one signed to ac as your agent. I suggest you tell the agents NO, but if you do sign one sign one that is just 2-4 weeks long. Some agents want you to sign one for 6 -12 months which is ridiculous. Just say no and go find a less pushy agent. Some will tell you stories about how they will work harder or they can set aside more time and Blaaa Blaaa Blaaa. It's to "lock you in" plan and simple.
0 votes Thank Flag Link Sat May 3, 2014
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