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Buyer-Broker Agreement helps buyers get the most from their

By Alexander Webb,2014-04-07 21:13
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Buyer-Broker Agreement helps buyers get the most from their

    Buyer-Broker Agreement helps buyers get the most from their transaction

    By Steve Rodgers

    President and Chief Operations Officer of Southern California and the Central Coast

    Prudential California Realty

In today’s real estate market, home buyers may encounter many challenges when trying

    to find the perfect place to call home or when searching for that ideal investment property. Working with a qualified Realtor who looks out for their best interests puts buyers at a great advantage. One way to create a strong working relationship with your Realtor is by signing a buyer-broker agreement.

    The Buyer-Broker Exclusive Agreement (BBE) is a document that outlines the responsibilities of both the Realtor and the buyer throughout a real estate transaction. It creates an exclusive partnership between the two parties for a set amount of time to locate property and negotiate terms and conditions for the purchase, exchange, option, or lease of property for the buyer. The BBE also documents the commission agreement between the agent and the client, but in most cases, the seller pays some or all of the commission.

    There are many advantages for buyers who sign buyer-broker agreements with their Realtors. The document puts in writing all of the agent’s responsibilities, so the buyer can

    hold them accountable to put forth every effort into finding the right property. In addition, the agent will be more committed to a client who has agreed to work with them exclusively and who assures them compensation in return for strong representation. The BBE outlines the buyer’s areas of interest, desired property characteristics, and expected price range for purchase. It puts the buyer in control of their transaction by making them a contracted participant who can expect a full range of services from their Realtor.

    “The Buyer-Broker Exclusive Agreement is a beneficial document, which has some similarities to the listing contract one would sign when selling their home,” states Alan Shafran, of The Alan Shafran Group in Prudential California Realty’s Carlsbad office. “It

    puts the buyer in the driver’s seat by providing them with complete agency disclosure, a full list of their broker’s authorizations and obligations, and a negotiated timeframe for the contract.”

    Signing a buyer-broker agreement establishes a strong working relationship between the Realtor and buyer based on better communication about the goals and desired outcome of a given transaction. A knowledgeable agent will ask the right questions to determine what their client is really looking for in a home. The buyer can also negotiate the length and terms of the contract to ensure they feel comfortable with their chosen representation.

    “Some buyers do not want to commit to an agent because they don’t want to feel pressure from that agent. The irony is that just the opposite should happen. Without a contract, many agents fear their clients will purchase property with another Realtor, which makes the agent put more pressure on the buyer to buy from them,” states Ken Kaplan, of The Kaplan Team from the Gaslamp office of Prudential California Realty and the company’s Buyer-Broker Exclusive Agreement trainer for Southern California. “Signing a buyer-

    broker agreement creates a commitment from both parties that alleviates the stress and pressure. There is no obligation to purchase a property when a buyer-broker agreement is signed. A good agent will let you know about the properties within hours of them coming on the market and will go the extra mile to create opportunities for you, rather than wait for opportunities to present themselves.”

    Working with a qualified real estate professional and protecting your interests as a buyer are extremely important when purchasing property. Buyer-broker agreements will help ensure that you get the most from your real estate transaction and will allow you to take full advantage of the American dream of homeownership.

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