Should I Sign That Buyer Agency Agreement?

This morning I read a great blog from a real estate agent in Ogden, Utah that examines the Buyer Agency Agreement:

We've all had it happen before. As buyers we call to inquiry about a property and schedule a time to see the home later in the evening. When the appointment rolls around, we meet the friendly REALTOR for the first time. Prior to entering the house the agent whips out a two page contract and asks us to sign it before going inside. As buyers, we are caught off guard and very skeptical to sign anything at this point. So we either sign it or we don't, either way we don't place much value on it.Jared Wangsgard, TubeUtah Real Estate Blog, Oct 2008

Many buyers wonder what the purpose of the Buyer Agency Agreement is.  This is probably because most real estate agents do not take the time to appropriately explain the concepts of the agreement or the benefits.  

The Buyer Agency Agreement is designed to protect both the real estate professional and the buyer. 

As a buyer, when you sign the agreement you have hired the real estate agent to work for you as your agent.  Until this is signed the agent has no authority to negotiate on your behalf or to represent you. And why wouldn't you as a buyer want your own agent?  An agent is someone who acts on your behalf to serve your best interests.  Real estate agents have access to information about all properties for sale, they have knowledge about the area, and they can advise you on the necessary paperwork and contracts necessary to complete a transaction. 

I am asked all the time by first time buyers how much it costs to hire me as their agent.  Did you know that as a buyer you generally won't be responsible to pay the agents commission?  The agent who represents the seller has already negotiated a commission that the seller is willing to pay to have their home sold.  The listing agent will then offer part of that commission to the buyer's agent.   

An agent must have this document signed in order to receive compensation.  Many buyers are unaware that real estate agents are paid on commission.  Without having this document signed the agent does not get paid.  And if the agent isn't going to get paid he has no real incentive to help you find the best home. 

When you decide to buy a home it is wise to interview a few agents before you sign the agreement.  There are a lot of good agents to choose from.  You want to make sure that you feel comfortable having them represent you. 

To learn more about buyer's agents and how they can help you, feel free to contact me.  I hold regular home buying classes and I will also meet with you personally to answer any questions.  To register for the next class being held in Logan, Utah click here.

Robert W. Bowen is a professional REALTOR®with RE/MAX Excel in Logan, UT. You can contact him with questions through his website, www.RobertWBowen.com, or calling (435) 770-1352.

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