If you’ve been through the process of buying a house with a real estate agent, then you’ll know that in most cases, the agent would have asked you to sign a Buyer Representation Agreement. But what exactly is this agreement? And should you actually sign one with them? Here are a few things you should know about Buyer Representation Agreements and how they work:
- It’s a legally binding contract
- It connects you with a real estate agent, by law
- It shows that your agent is committed to you, and that you’re committed to your agent
A Buyer Representation Agreement is an agreement between the buyer and the real estate agent they’ve chosen to work with. Signing it means that both the buyer and the agent are basically saying that they’re exclusively working with each other.
Typically, this type of agreement would be signed for a 3 month period or so, but some agents, including myself, will offer shorter commitment periods. Why? I’ve found that it’s often in my new client’s best interest to make sure we’re a good fit for each other first, which is easier to do with a shorter agreement period. It allows us to have a little bit less of a commitment, but a commitment none-the-less.
So, should you actually sign a Buyer Representation Agreement? The fact is, most professional real estate agents won’t work without one, and that makes sense. What the agreement really does is provide a bit of peace of mind for both you and the real estate agent you’re working with. Nowadays, you can’t even get a cell phone or cable without at least signing some sort of contract to show your commitment to the provider.
How It Benefits the Agent
At the end of the day, the real estate agent you’re working with wants to make sure that you’re only working with them. That’s because an agent does all of the work before they get paid for the service they’re providing, and they want to make sure that they will get paid once the deal is done. The Buyer Representation Agreement means, among other things, that you can’t work with another real estate agent; but while that might sound like a big commitment, some agents, including myself, will cancel the agreement if things aren’t working out.
How It Benefits You
It makes sure that your real estate agent has your best interests in mind when they’re searching for the perfect home for you. It means that, in most cases, they’ll be working with your best interests in mind, and while a contract can’t really make someone work with ‘your best interests’ in mind, that’s the general idea of the agreement.
But Keep In Mind
Because a Buyer Representation Agreement is a legally binding contract, you’ll want to make sure that the real estate agent you sign it with is a good fit for you. That’s because even though I mentioned that some agents may let you get out of it if things aren’t working out, there’s no written rule here, and other agents might not be as flexible.
Interested in what a Buyer Representation Agreement actually looks like? You can download a sample version of one right here.