What is a Buyer Representation Agreement?

Hello Everyone,

A buyers Rep Agreement is normally presented before going out to view homes with your Realtor. Here is some good information to know before signing.

What is a Buyer Representation Agreement?

A Buyer Representation Agreement (BRE), formerly called a “Buyer-Broker Agreement,” is an employment contract that spells out the duties and responsibilities of the REALTOR® to the prospective buyer, and vice versa.  It describes the kind of properties that buyer is interested in viewing and obligates the REALTOR® to be vigilant in showing or making these homes known to the buyer.  The form specifies that the REALTOR® who spends time to show the homes will be responsible to write up the offer when the buyer is ready to make an offer.

Signing the Buyer Representation Agreement does not mean that the buyer has to buy from the homes shown if their criteria or goals have changed.  But it does indicate a commitment to the realtor that the buyer is not frivolously asking to be shown around town.  The Buyer can always change their search criteria by informing the real estate agent.  High-performing realtors are top producers because they know how to manage their limited time and prioritize their customers.  By signing a Buyer Representation Agreement, the buyer can be assured that the high-performing realtor will devote priority time to help them find a home in the shortest possible time.  Buyers who do not have a Buyer Representation Agreement with the top-producing realtor will fall to the wayside.  As the real estate market picks up, a smart buyer will be better off to sign a Buyer Representation Agreement.

A REALTOR® may or may not charge a fee at the end of a specified time period for searching and showing homes.  Some REALTORS® charge a fee to recover their gasoline costs and time in the event the buyer ends up not buying any property after being shown an extremely huge number of homes.  The contract may state that the fee is waived if the buyer buys a home.  The amount of fees charged, if any, may vary with the price of homes and difficulty of locating a home specified by the buyer.  That fee has to be specified in the contract and the buyer should be given a copy of the signed agreement.  Usually, most of that fee will actually be paid by the listing agent, so that the buyer may only be paying a small amount or none at all.  For example, if the Buyer Representation Agreement states that the realtor expects to receive 2.5% commission, and the listing agent is offering 2.5% commission to the buyer’s agent, the buyer actually PAYS NOTHING even though he/she has signed a Buyer Representation Agreement.  However, if the listing agent is only offering 2% commission, for example, then, the Buyer MAY be asked to pay the difference of 0.5% to his/her realtor (the buyer agent) depending on how the agent works.  I as a rule do not charge the Buyer a commission.

Be aware that from the realtor’s perspective, they are also actively making a choice as to which buyers they want to work with and with whom they would be willing to sign a Buyer Representation Agreement.  A smart top-producing realtor will NOT want to sign a Buyer Representation Agreement with a buyer who says “Just send me the listings” — because they know that that type of buyer is not likely to respect for the buyer agent’s time.  Smart and busy homebuyers who value their time would almost always want a Buyer Representation Agreement because that is the only way they can make a top-producing REALTOR® devote priority time to do home searches, preview homes, prepare contracts and negotiate the best deal for them,.

Cordially,

Scott Myers, GRI
Broker-Owner
Century 21 Scott Myers, Realtors – 2015 Fast Track winner as voted by the San Antonio Business Journal
11830 Wurzbach Rd. (The Elms)
San Antonio, Tx. 78230
Phone # 210-479-1222
Fax # 210-479-1981
Toll free Phone # 1-888-868-1222
Scott.Myers@Century21.com
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How To Choose The right Home

Hello Everyone,

For first-time buyers and repeat buyers alike, the decision to make an offer on a home is both exciting and a little scary. If your offer is accepted, the place you’ve chosen will be your home for the next several years. Not only should you feel emotionally satisfied by your choice, but you should also feel financially comfortable that you’re buying a home that you can afford and that you feel confident will hold onto its value or hopefully increase in value over the years.

While no one can know for sure what will happen to housing values, if you make the choice to buy a home that meets your needs and priorities you’ll be happy to live in it for years to come.

Neighborhood or Home Amenities

For some homebuyers, living in a particular neighborhood takes precedence over all other priorities, but for others, the home itself matters more. Ideally, you’ll find the perfect home in the neighborhood you love at a price that’s below your budget, but realistically, most people have to make some compromises.

You (and your spouse, partner or family) should make a list of what features you want in a home, such as the number of bedrooms, a fenced yard, granite counters in the kitchen, and then rank them in terms of priorities. Think about whether the house or the community matter more to you, and whether it’s worth it to you to make a longer commute in order to live in a home with a larger lot.

When to Compromise

Once you’ve determined whether the location or the house itself matters most, you may have to compromise on some of your priorities. If the location is the most important factor for your home choice but you find that homes are priced above your budget, you can compromise in several ways:

  • Look for a different home type within the community, such as a smaller single family home, a town home or condominium. Decide if you can live with one less bedroom or other features on your list.
  • Consult with a lender or a financial planner to discuss your options for increasing your budget. While no one should overspend on a home, you should recognize that going $10,000 above your price range when you’re financing your purchase with a 30-year fixed-rate loan will actually add only about $30 to your monthly payment.
  • Lower your expectations about the condition of the home. While everyone prefers a move-in ready home, you can often get a better deal on a home that needs some cosmetic repairs. Be careful, though, to have a home inspection and to evaluate the structure of the home to see that it meets your needs. Moving walls and adding a bathroom are costly renovations, while painting and replacing appliances are more reasonable.

If you have your heart set on a specific home style or a home with a larger yard for your children or to garden, your compromise is more likely to be in the location. If you’re willing to commute farther or perhaps choose a home in a community next to the ‘hot’ neighborhood, you can often find a more affordable home that fulfills your wish list.

An experienced Realtor can help you determine when and how to compromise and should take the time to show you a variety of alternatives so you can make an informed decision about when to make an offer.

Cordially,

Scott Myers, GRI
Broker-Owner
Century 21 Scott Myers, Realtors
11830 Wurzbach Rd. (The Elms)
San Antonio, Tx. 78230
Phone # 210-479-1222
Fax # 210-479-1981
Toll free Phone # 1-888-868-1222
Scott.Myers@Century21.com
Find us: Web Site | Facebook | Twitter |ReachFactor | Google +
Check out our Blog: Living in San Antonio 

e role in the sale of your home.