Buyer Broker Agreement

When did you last offer to volunteer your time at work in exchange for no compensation? I’m not talking about an hour or so to assist a colleague, more like a month of your time: 8 hours a day, 5 days a week.

For as long as I’ve been in the real estate business, it still surprises me when I encounter someone who is unfamiliar with the dynamics of the realtor/client relationship. As in the case of most professionals, real estate agents’ greatest assets are their time and their expertise. The minute a client doesn’t respect or honor either of these, that realtor essentially becomes an unpaid tour guide. Without a buyer broker agreement (also referred to as a buyer agency agreement) there is no contract acknowledging a professional relationship.

If a competent real estate agent is working diligently on your behalf to help you secure a home, you won’t be pushed to buy quickly. A professional agent will note your home search parameters and then go to work on your behalf: attend broker caravans in neighborhoods of interest, converse with agents about upcoming pocket listings, alert you of new listings, tour properties with you on weekends, etc. This is oftentimes a long search process.

Now for a “real life” example that might better illustrate why I advocate a binding agreement:

Buyer B sold her house and decided to rent while she searched for a property that fit her very unique, and somewhat challenging, criteria. B’s agent, who had sold her house, found a perfect rental that afforded a stress-free environment in which B could take her time looking for the perfect home. Months went by. Sometimes B was focused on looking at new listings; other where can i buy tramadol online times she was unresponsive as she had other priorities. No matter. Her agent continued to tour properties and send updates so that B remained informed. During a two-year period, B presented two offers with her agent and frequently asked her agent to explore property in various neighborhoods. Sometimes B was focused on a house in North Park, other times on a Downtown condo. B started with a two-bedroom minimum, then reconsidered and decided a one bedroom might work. It might sound like B didn’t know what she wanted, but this pattern is understandable as buyers consider options. B’s agent devoted at least 200 hours over two years educating B so that she would make a well-informed decision when it came time to buy.

One day B went to look at a new condo project on her own (that had previously been priced above her price point). The project now interested B, but she did not share her renewed interest with her agent. When the unit she liked became available, B’s agent emailed her the listing, suggesting she take a look. On that same day, the building’s sales team called B to tell her about the unit’s availability. B opted to respond to the sales team’s call, rather than her agent’s email and phone call. With no buyer-broker agreement, B decided to act alone and negotiate with the Developer. Like many buyers, B was unaware that her agent would have received a commission, paid by the Developer, and she would have then had the benefit of an experienced negotiator working on her behalf.

Variations of this scenario are seen over and over again. Buyers visit an open house where an agent might urge buyers to write an offer before someone else gets the property. Fearful that they might lose their dream house, they write an offer with an agent they have never met before and don’t call their agent until the ink has dried. The agent who had been diligently working on their behalf is history.

Good agents work hard for their clients. Even conversations with other agents can sometimes lead to knowledge of a “soon to be listed” property that has not yet been made public. Your agent’s behind the scenes efforts may directly result in your home purchase. The Hernholm Group advocates a buyer-broker agreement as we know that our professional expertise and knowledge bring value to each and every client.

Contact Us

  • Janna Hernholm,
  • CA BRE # : 00841932
  • Melissa Hernholm,
  • CA BRE # : 01253708
  • Matthew Hernholm,
  • CA BRE # : 01874558
  • 810 W. Washington Street
  • San Diego, CA 92103
  • P: 619.299.4272
  • E: janna (at) hernholmgroup.com

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