Let's say a buyer calls you from your website and asks you to show them a home. The buyer is pre approved already and isn't working with a Realtor. Do you guys have them sign a Buyer Broker Agreement before you show them the home or have them not sign anything at all?

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Paul Caparas
Broker Associate/Realtor
Weichert Realtors Elite
San Diego Homes For Sale
San Diego Foreclosures
San Diego Real Estate Blog

First: You don't have anyone sign anything. You are asking them to hire you and therefore you are asking them to sign. Sorry, just sounded like it was a forced act the way it was put.

Second: Do you take listings without a contract? Your answer to that question will answer your question.

I do not work with Buyers that can not make a commitment to me. I mean, the contract can be for a little as ONE DAY! If you can not make that kind of commitment then we will not be working together. I work very hard for Buyer's; Gas Is VERY expensive. The Buyer has more to gain by Hiring Me than a Seller does.

When a Seller Hires you; You give them a CMA, Your Marketing Plan and you Guide them to a Successful Sale, You do a few Open Houses (but thats just to get Buyer Leads)

When a Buyer Hires you: You are typically Guiding them in their pre approval process, providing attorney information, home inspector information, scouring 1000's of listing for those that meet their needs, running cma's on every property they consider buying, negotiate with the listing agent, providing them with local information: Utilities, Services, Shopping, Churches, some times jobs as well. All my Buyer's are still in touch with me many many years after the deal is done. Heck, I have even gone to the Planning Board Meetings for and with my land Buyer's or Buyer's that will be doing a change of use. Add all that to all the driving you willbe doing and this is why many agents Only work with Seller's.

This is why I feel that Listing Agents do a Dis Service to their Seller when they short change the Buyer's Agent on a commission split. I do see a day in the near future where the market will change to Seller pays Sellers Commission and Buyer pays Buyers Commission. Yes, I know this is doable now, but difficult to sell since it is not the norm yet.

One last thought, Remember if you sign up a Buyer; You should be showing them all available housing that meets their needs, INCLUDING FSBO's! This is the only time my Buyer pays my commission as my contract states.

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Larry Jensen, Principal Broker
St. Lawrence Properties, llc
www.StLawrenceProperties.net

What's My Mileage?

I thought Open Houses were just to keep the sellers happy

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Coastal Delaware Real Estate Sales
REHOBOTH BEACH CONDOS | REHOBOTH BEACH REAL ESTATE | REHOBOTH BEACH MOBILE HOMES
* Results not typical. Individual results may vary.

They use to keep me happy with the 10-15 Buyer Leads we would pick up. Today we are lucky if we get 3 people in the door!

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Larry Jensen, Principal Broker
St. Lawrence Properties, llc
www.StLawrenceProperties.net

What's My Mileage?

I would be careful with too many requirments in this market unless you have enough business to pick and choose. There is always another agent around the corner willing to show property with no agreement.

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I think that requirement really depends on the protocols & customs of a particular area.

Some persons may feel the need to write up a contract just to brush their teeth in the morning. They are so use to having a contract for everything, that its "normal" to them for their area.



'round here in the sticks we have more pressing legal matters like "If you divorce your wife, is she still your sister?".




That being said, most buyers HERE would take signing a buyer's agreement as a personal insult to their integrity.
(Where I'm at, its not entirely uncommon for people to NOT even have keys (or locks) for their homes.)

I'm not disagreeing with the logic & law of what you are saying. They say they are committed to me, all we are doing is establishing our respective obligations to one another so that there is no misunderstandings, etc, etc, etc, etc, etc, etc, etc, etc, etc, etc, etc, etc.


But I am quite certain, no matter how you tried to spin it & present it, most HERE would dig in if you pressed the issue to the point of losing the deal.

Its just not the way things work around here.

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Jennifer Karlen & Jon Karlen
Kentucky Horse Farms - Louisville Kentucky Real Estate - Lexington Kentucky Real Estate
Serving the Louisville KY metropolitan area including Jefferson County - Prospect Shelby County - Shelbyville Oldham County - Goshen, La Grange and the Lexington KY metropolitan area including Fayette County - Lexington Woodford County - Versailles Scott County - Georgetown Jessamine County - Nicholasville

I hear what you are both saying and YES I totally agree that the Area has a big part in this as well.

Just a few years ago, it was unlikely that an agent was even following our Disclosure Laws, let alone Buyer Contracts. That was until a Savvy Buyer, who lost out on a deal, Sued the Agent and the Broker.

This Buyer did sign the Legally Required Agency Disclosure Form provided to us by the State of NY. The Buyer took this as a Contract and no where did it state that his Agent, Let Alone, the Brokerage would be showing that house to any other Buyers. Yes, you read that correctly. The Buyer Assumed that HE was the ONLY ONE that the Brokerage Office AND EVERY AGENT in the Brokerage Office would be showing that house to.

He Won, Even if just in Theory! That was the Start for many to begin utilizing the Buyer's Representation Contract. Some of the newer and savvy agents (like myself ) had already been using the contract much to the dismay of other agents.

Today, most offices require you to produce documentation to prove you are indeed a Buyer's Agent for the simple reason They Do Not want you working as a Sub Agent. A whole other set of legalities and another thread.

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Larry Jensen, Principal Broker
St. Lawrence Properties, llc
www.StLawrenceProperties.net

What's My Mileage?

I've gone both ways and been burned both ways, BUT the way we have decided to do it now (My buyers agent and myself) is to get a signed Buyer Broker prior to even showing the first home. It's just simpler and for the most part keeps other agents from stealing your clients. How we sell it is in 2 ways number
1) It's essentially the only way we go around spending time and money to show you homes (as already mentioned)
2) And what we have found really works is.” I can only call the seller and their agent(s) (agent really) if I am legally working for you and with out the Buyer Broker Agreement I am not. Most people will realize its only common sense you would want the agent that your asking all these questions about to actually work for you the client. (This is on the phone prior to meeting them)
#2 is what we start out with once they start asking questions on the phone we will pre-sell it and very simply explain the forms and set the appointment then 9 out of 10 when we meet them in person for the first time whether office or house they will sign it. Obviously if their our listing and they wont sign then we still show them the listing to peak interest. If it’s not our listing and they wont sign prior to showing the home then I’m not sure what we would do because that hasn’t happened yet. Most likely still show it and try hard to get the buyer broker before we left the first home. If not then I’m on to another client.

fantastic thread with some great posts. those are some great strategies AZAgent2.

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Cheers

Jesse in LB

"Great spirits have often encountered violent opposition from weak minds." Albert Einstein.

Buying a home in Long Beach

AZ,

I just sent some Reps your way!

You put that very well. These were the strategies I was taught when I earned my ABR. That second one works like a charm especially since people tell you way too much on the phone. I also include; Do you want me to be working for the Seller and Getting you to pay the Highest Price we can get from you...OR?

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Larry Jensen, Principal Broker
St. Lawrence Properties, llc
www.StLawrenceProperties.net

What's My Mileage?