A Buyer's Contract is always a good idea in any market. It helps to educate the Buyer as well as protect you. The item that will probably most concern a Buyer is the section that speaks about the Buyer having to pay compensation. You can always waive that or cross it out of the contract because, in my mind, the important part of the contract is that they will not use another agent to complete a sale.
A good way to handle it is to have a conversation upon first meeting and let the Buyer's know something like this:
You don't know me yet, but we will be spending the afternoon looking at property together. It will be a chance for both of us to get to know one another and decide if we want to continue working together. If that is the case, then I will be making a commitment to you and I expect the same. I will be asking you to sign a Buyer's Agreement and you should only do so if you feel comfortable using me exclusively as your agent for this transaction.
If they do not want to do this, that is a red flag right off the bat. Maybe they aren't serious buyers or maybe they will not be loyal. They should at least be able to have a good reason for not wanting to sign it, if that is the case, and you can then decide whether or not they are worth your time.
Jenny Briley, Realtor
Coldwell Banker Premier Real Estate
You just don`t get married on a blind date.
Clients need to trust you. They need to like you, and WANT you to be their Realtor.
You need to earn their trust.
When your new client requests to tour a home, present them with a Buyer broker that will expire in 14 days.
Two weeks is not that big of a commitment for your clients. You will have two weeks to find them a home. Ask the right questions, make sure the loan apps are done. Over that two weeks you will find out how serious your clients are.
When your two weeks are up. Present them with another two week commitment.
If you have earned their trust, around Buyer Broker 3 or 4, they will Tell you to make it for 90 or 180 days.
I learned my lesson by not having a contract and lost out on a huge deal. I normally have buyers sign a contract when I write their first offer..which is normally within a month of meeting. You keep in contact and make sure you treat the clients as though they are your only one. And make sure you have them sign the whole EXCLUSIVE agency...
I had a property listed as a short sale that got foreclosed. There was an agent working with a buyer that kept following the progress of this home, but not making an offer. The buyer knew just when the house got foreclosed. Now the buyer is trying to buy it directly from the bank. I urged the agent to get a buyer's representation agreement signed. The agent is better able to serve the buyer knowing the buyers is as committed to her as she is to the buyer. This is also true for buying properties on the courthouse steps. Without this agreement you will not get paid.
This is a buyer's market. For the buyer to get the best deal possible he/she needs to be exposed to all the properties available. As the buyer's representative, you will feel confident showing them FSBOs, foreclosures, REOs, short sales, auctions, etc. This is very time consuming, but potentially rewarding to both you and your buyers. During a seller's market don't you require a listing agreement? Why wouldn't you require a similar agreement from a buyer?
Barbara Jenness, P.A., ABR, e-PRO, GRI, TRC
Coastal River Realty