Buyer Broker Agreements - why are they important?

If you have been watching the news lately, the topic of buyer brokerage agreements and real estate has become an important one. On this episode, you will hear from sophia as to why these agreements are so important. In the past, they have been used lately but going forward you will hear more of this if you are looking to buy a home in the future.

Transcript

Shure MV7 & AnkerWork C310 Webcam: 0:01

Hi, it's Sophia. And today we're going to talk about buyer brokerage agreements. Why are they important? Who needs them? So I've come up with a list of nine things, nine reasons why a buyer brokerage agreement is important to you and to us. Okay. Starting with number 1. Representation. The agreement ensures that the buyer's best interests are represented in the real estate transaction. So this agreement is a piece of paper. And on it, it clarifies that the agent is working for the buyer, not the seller, meaning the agent is obligated to act in the buyer's best interests, including seeking best price and terms. Number 2, Commitment. It establishes a formal commitment between the buyer and their agent encouraging a more dedicated effort from the agent in finding properties that meet the buyer's criteria. This commitment can motivate agents to prioritize and devote more time and resources to the buyers search for home. So let's pause for a second. Can a buyer have multiple buyer brokerage agreements with multiple agents? And the answer is no. So when we talk about commitment, the agent then knows that this buyer is committed to them and they are not working with other realtors. And then also the buyer knows that this agent is working towards their best interests and not for the seller on any property. they're interested in. 3. Confidentiality. This agreement protects the buyer's confidential information. Agents are bound to keep financial information motivations for buying and other personal details private safeguarding the buyer's interests. 4. Clarity on Compensation. It clearly outlines how the agent will be compensated, often through a share of the commission from sale price paid by the seller. This clarity helps manage expectations, or reduce potential conflicts over payment. Please keep that part in mind for mid June of 2024, we will come back to number four, clarity on compensation. Number 5 Access to Full Services with the buyer brokerage agreement buyers often get access to a wider range of services from their agent. So in addition to opening doors and showing you properties, you may have access to in depth market analysis, property previews, negotiation on their behalf, and assistance through closing. This agreement signifies that the agent will provide these services rather than just showing properties. Number 6. Negotiation and advocacy. The agent is committed to negotiating the best possible terms for the buyer, leveraging their expertise and market knowledge. This includes price, negotiations, repair request, following inspections, and other terms of the sale. Number 7 Professional Guidance. This agreement ensures buyers receive professional advice in all aspects of the buying process from identifying suitable properties to navigating complex paperwork and legal requirements. This guidance can be invaluable, especially for first time buyers that aren't sure what to do during a transaction. Number 8 Customized Search and Efficiency with a clear understanding of the buyers needs and preferences, as established in the agreement, the agent can tailor the property search more effectively saving time and focusing on properties that closely matches the buyer's criteria. And number 9 is the last one. Legal Protection. This agreement provides legal framework for the relationship. Outlining the duties and responsibilities of both parties. This can offer protection in the event of a misunderstanding or a dispute. Overall. Bottom line. The buyer brokerage agreement establishes a formalized relationship that benefits both the buyer and their agent. Fostering trust. Clear communication. And a committed partnership in the home buying process. This ultimately enhances the buyer's chances of finding a suitable property at a fair price. With professional support. Along the way.