“Hi Gary. It’s been about 10 years since my wife and I bought our home. We recently met with an agent to talk about finding a bigger home. When we were done, he asked us to sign a Buyer-Broker Agreement. I’ve never heard of this. What do you advise?”
Answer:
A “Buyer-Broker Agreement” outlines how you and your agent will work together as you look for a home. It commits you to work exclusively with that agent, usually for 3 to 6 months.
Agents prefer these agreements because all too often they devote blood, sweat, and tears serving a client, only to have them buy a home through another agent at the last minute. Buyer-Broker Agreements are growing more common and many better agents won’t work with you without one.
The benefits to you are:
– The agent should work harder for you, knowing you’re a loyal client and his time and effort won’t be wasted.
– Agents call committed clients when the best homes and values come up.
The drawback is:
– You may commit to an agent who doesn’t work out.
Should YOU sign a Buyer-Broker Agreement?
It in effect turns you from a “customer” (someone who is sold to) into a “client” (someone a professional represents). If you feel you’ve found a skilled, hard-working agent who’ll devote time to you, I think you’ll benefit.
Our policy:
We give our clients the option of signing what we call our “Buyer Representation Agreement.” For clients who do and also use our preferred lender, they get three added benefits:
– a FREE home inspection (apx $300 value)
– a FREE appraisal (apx $350 value)
– access to many homes NOT on the market.
If you’re interested, call me at 858-457-KENT and we’ll discuss helping you find a San Diego home or rental property.
