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Uhmmmm, What Noah? We use a Exclusive Buyer Broker to inform the Buyer what we will do for them, what our fee's are and who pays them. We use them everytime, from the first meeting.
Chief Cook uses them all the time....I think rather than ruining a trust relationship, it reinforces it.
I use them since they are mandated by the state. But I make light of them and usually the first one is for just one house for just one day. If they aren't willing to sign that then they are likely going to be a difficult client and I need to weigh if they are someone I want to work with.
In Pa we have the non exclusive contract which I explain by saying that if I show the home they should buy that home through me but they are free to look at other homes with other agents if they choose . They are adviced to read the contrcat carefully . I always provide the consumer notice which is not a contact and it explains agency.
We always did get an exclusive rep agreement. I don't think it is like a prenup. The only client that did not was a big music company. I stuck to the principal like glue showing him every available space in the designated areas of Los Angeles...we did the deal and subsequently 3 more, and by then they loved us...A
I use them 95% of the time and just tell buyers that is the way I work. It is usually not a problem.
I have used them in some cases but not all. I usually talk with new buyers about this after we have had a meeting and a tour of some homes so they can decide that that they DO feel comfortable signing with me or not
I don't typically use them; however, there are always exceptions especially when the buyer says he's had contact with other agents but wants to work with me. Just as a precaution I think they should put it in writing.
I do not ask my buyer's to sign one until we write an offer. I want my buyer's to feel as if they want to work with me rather that being contractually obligated to work with me. Also, an attorney and a motivated buyer could always get out of the agreement anyway...
Put the agreement in writing and provide an easy release if needed.
Noah Seidenberg now I got to fix this for myself - I do not have EBA - and work on turst. However, God has been kind with me.....
I like the idea of a buyer's agreement. In reality, I don't feel comfortable asking someone who just me to sign a legally binding document. If I am unsure about whether a buyer will wander, I will ask for a buyer's agreement, but only after a time or two of getting together.
Noah, I felt the same as you until recently! I now follow my scripts and do not deviate from them. Of course, the last bad experince has changed my thinking.
Good relationships are outlined with good written agreements.
Every time - just like listing agreements
I've never used in 4 years and don't intend to change
Only in a questionable situation. Like the prospect knows a lot of agents get one suspect who has also talked to lately.
An exclusive buyer agency agreement is difficult to obtain at an initial meeting and not an easy conversation to have. Most agents choose not to do so, which makes it more difficult for those of us who insist on it. It is a legal requirement in our state to have one to sell a home (i.e. buyer representation is mandatory for their protection since the listing agent works for the seller). A listing brokerage has the right not to pay a co-broke fee to an agent without such an agreement. However, even if you have one on day one, I think the protection is minimal as often buyers don't obide by it.
Absolutely, I use these. Otherwise, that buyer is not a client and I am required by law to represent the best interest of the seller as their sub-agent.
Although Larry and I are Buyers Reps, many here are skeptical of signing anything...
I have buyers sign an agency agreement with me as soon as possible. It protects the agent by doing that.
Noah, in Colorado we are to identify our relationship with our buyers as soon as possible. I usually show the first day, then have them sign if they are comfortable with my knowledge.
You need to read your buyers. Not all buyers want to sign a buyer agreement. On a case by case basis.
I have not used Buyer/Broker agreements in the past, preferring to go the trust route, which has worked for the most part. However, I think I will start having buyers sign for the properties I actually show them. I feel this is fair for all parties involved and may cut down on the "shenanigans" some people like to play.
I have tried using these down here in FL, Noah. But since so few do in my community, it's a really hard sell. It's probably more beneficial to get the trust and educate buyers than having them sign a rarely enforced piece of paper.
I really liked doing the 'trust' thing...worked very well...UNTIL
some brokers started submitting homes for sale into the MLS with a whole $1 co-broke compensation. Add to that the reality that a buyer who says "I'm looking for a home in Tabbybush and don't want to spend more that $400,000" suddenly wants to see a foreclosure listed at $57,000 on Auction.com. I trust you are doing the math.
If you have not had the compensation discussion before hand, doing it now will be truly uncomfortable. My conversation is about how I am compensated, it just happens to be contained in the EBA.