“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?”
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.
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.