There is no required paperwork needed between buyer and realtor before the physical home search begins. But if you ask some Realtors who have been in real estate for a while you hear stories about how they wished they did have their buyers sign a buyers agreement. Just like the listing agreement, the buyers agreement spells out the responsibilities of both the Realtor and buyer. What could happen is that an agent will be working with a buyer who has emailed listings to customers, called other agents on behalf of the buyers to determine availability of properties and to schedule appointments, drive the buyers from one neighborhood to another possibly for months and then one day get a call from the buyer and they are told they found a wonderful subdivision and the new home of their dreams and they just signed a contract with the builder. From the agent's perspective this is not good news as they have spent valuable time and money with this buyer with the expectations of payment for services upon the purchase of a home and I am sure most buyers don't even realize what has just happened. Not many agents like to work for free and I am sure no one else does either. Should you sign an exclusive agreement? Many buyers are uneasy about signing any agreements now a day but you can take steps to protect yourself should the arrangement not work your in best interest; ask for a short term agreement, ask for guarantees (make it a two way street), specify terms of purchase and price range and request a non exclusive agreement that protects the agent for procuring cause but does leaves you free to search for homes with other agents.
Contact Kari A. Battaglia, GRI, Realtor®, Broker Associate, Coldwell Banker Residential Real Estate, Licensed Realtor® in Florida at 941-270-1851 to list your property for sale or to purchase a property in Venice Florida, South Venice Florida, Englewood Florida, Nokomis Florida, Laurel Florida and for Tennessee real estate investments. I am currently accepting referrals.
Contact me by email at kari.battaglia@floridamoves.com. Need information fast, call me direct at 941-270-1851.
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Copyright © 2008 By Kari A. Battaglia. All Rights Reserved.
Serving customers in Venice Florida, South Venice, Osprey, Nokomis Florida, Casey Key, Manasota Key, Englewood Florida, Rotonda West and North Port communities. Call me to list your home for sale, answer questions regarding steps you can take to AVOID FORECLOSURE or answer any general questions you may have about real estate.
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I know the frustration!!!!
I usually wait until I have a relationship with my client before putting papers in front of them.
Thanks for sharing
Rich
Charlotte NC
When you sign, I think, depends on how the relationship starts.
If it's a referral, I usually get the paperwork signed, and there is no issue whatsoever.
It seems that referrals trust you automatically and know you're going to look after their best interests, because their friend and your past client recommended you.
If it's a call on one of my listings, I will usually show them the listing, and will not bring up the paperwork, unless they ask me to continue showing them properties. I will show them 2 or 3 listings and if they want to continue working with me, then we will do paperwork before proceeding any further.
I will know when I meet the client, whether or not I want to continue the relationship.
I think the client will know too. It's always easier if both parties want to continue the relationship, and if that's the case, you should have no problem getting the paperwork signed.
I usually wait until the relationship grows a little and some trust forms - I don't have a problem usually working with people -- Not yet anyway!
It seems that waiting to develop a relationship with your customer is the key . I am glad to hear that.
I agree with your comments. In Colorado, the Real Estate Commission highly encourages each practitioner to have a signed agreement from the beginning but if you are showing properties in the absence of a buyer agency contract, the Real Estate Commission deems that you are working as a transaction agent, where you can't be an advocate for the buyer or the seller. Once this is explained to the buyers, most of them are eager to sign the agreement, so they are getting the broker's input on properties they are viewing. In light of this, I've had no problems getting buyers to sign before we start looking.