Ask a Realtor . . .
Did you ever have a question you wanted to ask a real estate professional but were afraid or embarrassed to do so? Or maybe you did ask but received a glossy response that didn’t really answer your question. We try to provide candid answers to questions folks have brought to our attention.
Why should I sign a Buyer’s Representation Agreement? Won’t committing to just one agent limit my choices?
The key words are representation and confidentiality. Without a buyer’s rep agreement, you are in a ‘customer’ relationship with an agent. While this does require agents to provide a minimum level of duties to you — perform their duties, properly take care of the money, inform you of any ‘adverse material facts’ (bad stuff) about a house — it doesn’t provide some of the critical ingredients in any real estate transaction. Two of these ingredients are confidentiality and the requirement to always act in your best interest — act as your ‘agent’ in a ‘client’ relationship.
For example, let’s say you’ve approached the listing agent and you told them you really need to buy a house in the next month because your lease is expiring. If you are in a customer relationship with that agent — you haven’t signed a Buyer’s Representation Agreement — they have no obligation to keep your motivation and timeframe to themselves. They can share that information with the seller which may negatively impact your negotiations. However, if you have an agent working for you because you have signed a Buyer’s Representation Agreement with them, not only must we keep your true motivation confidential, we are required to negotiate for what’s best for you and to promote your best interests — this includes exposing you to all the homes that meet your criteria!
