{"id":3740,"date":"2022-12-02T14:11:03","date_gmt":"2022-12-02T14:11:03","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/12\/02\/is-it-time-to-add-a-buyer-representation-agreement-to-your-business-practice\/"},"modified":"2025-03-13T02:48:11","modified_gmt":"2025-03-13T02:48:11","slug":"is-it-time-to-add-a-buyer-representation-agreement-to-your-business-practice","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/12\/02\/is-it-time-to-add-a-buyer-representation-agreement-to-your-business-practice\/","title":{"rendered":"Is it time to add a buyer representation agreement to your business practice?"},"content":{"rendered":"\n

Signing a contract when representing sellers and listing a property are second nature to all real estate professionals. An agent would never list a property without a contract, right? So, why do so few agents require a buyer representation agreement? It’s not standard practice because it can be a difficult conversation to have with buyers.<\/p>\n\n\n\n

In a November session at the National Association of Realtors<\/strong> NXT Conference in Orlando, Adorna Carroll, president of Dynamic Directions<\/strong>, who trains real estate agents on buyer\/seller representation, offered what she says is one way to get ahead of any decisions on buyer commissions<\/a> coming down from the multiple lawsuits<\/a> currently moving through the court. <\/p>\n\n\n\n

\u201cYour guess is as good as mine about what\u2019s going to happen,\u201d she said. \u201cAgents must move from a subagency or transaction brokerage mindset to a representation mindset because that\u2019s going to be the value proposition.\u201d<\/p>\n\n\n\n

For buyer\u2019s agents getting a signed buyer agreement requires a careful conversation about the amount of time you will be spending with your buyers to find them their dream home. Yet, rather than propose a signed buyer agreement, agents often do this work ministerially, keeping their fingers crossed that the buyers won\u2019t act without them or with a different agent.<\/p>\n\n\n\n

The next time a homebuyer approaches you for assistance in finding their dream home, have them sign on the dotted line. \u201cI recommend you tell them, \u2018There are certain things that I need to cover here so we can mitigate your risk and we can manage mine,\u2019\u201d she said. <\/p>\n\n\n\n

Putting together a process for buyer representation<\/h3>\n\n\n\n

According to Carroll, there are several classes that you can take to guide you in how to approach buyers when requesting they sign an exclusive buyer agreement. Some that she recommends are: Accredited Buyers Representative course<\/a> (ABR), the Seller Rep Specialist course (SRS) and the Real Estate Negotiation Expert designation<\/a> (RENE). Enrolling in these courses and earning these certifications will elevate an agent\u2019s skill set and reassure buyers that they are working with a seasoned professional. <\/p>\n\n\n\n

But once you\u2019ve acquired the skill set to attract buyers<\/a>, what do you include in a buyer\u2019s contract? How do you write one? And most importantly, how do you get buyers to sign? <\/p>\n\n\n\n

According to Carroll, there are a few key points that every buyer\u2019s contract should cover: <\/p>\n\n\n\n