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,.
Scott Myers, GRI
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
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