A Buyer Representation Agreement is a contract that formalizes your relationship as an agent with a buyer. The client or buyer is entering into a legal agreement to work exclusively with you for a period of time.
There are many agents that feel uncomfortable asking buyers to sign a contract. One of the most common reasons is because they are afraid that if they ask for commitment too early, they might lose the opportunity to work with the buyer altogether. However, it is important to move past this fear as there are many benefits that come as a result of signing buyers to contracts.
We agree that you must first build rapport and provide the buyer with a presentation that demonstrates the value that will be provided as a result of working with you. However, once you deliver a professional presentation, the next step is to express the benefits of signing a buyer agreement.
Although there are benefits to you as an agent, it is important that you focus on how the client will benefit.
First, make sure to highlight the fact that buyer agreements are meant to protect the buyer. The buyer is more likely to pay attention to what you have to say next if they believe they will benefit.
Next, highlight the fact that when a buyer signs the agreement, you as an agent are legally obligated to provide them with specified services. Once the buyer knows and understands that the agreement legally binds you to deliver services to them, it will go a long way in obtaining their agreement to sign.
A buyer agent is legally obligated to educate the client on market comparisons. Make sure the client knows that a seller’s agent does not have the same obligation to them.
A buyer never wants to imagine overpaying for a home. Once a client understands that the buyer agreement is put in place to protect them and you have educated them on the services you will provide, they should be more than willing to sign the agreement.