Why Every Homebuyer Should Demand a Buyer Agency Agreement
When buying a home, it's crucial to have an agent who is loyal to you and puts your interests first. That's where a Buyer Agency Agreement comes in. As a buyer, insisting on this agreement can provide you with vital protection and benefits throughout the purchasing process.
What is a Buyer Agency Agreement? A Buyer Agency Agreement is a contract that legally obligates your real estate agent to represent your interests as the buyer, not the seller's. In the past, agents were required to prioritize the seller's interests in every transaction. Buyer Agency Agreements were created to finally give buyers the option to have an agent who is completely in their corner.
How Buyer Agency Agreements Benefit Buyers By signing a Buyer Agency Agreement, you gain several key advantages:
Your agent must put your interests ahead of everyone else's, including their own
Your agent can share candid opinions about a property's value and suitability for your needs
Your agent is required to disclose any information that could help your negotiating position
Your agent will work to ensure you don't overpay for a property by providing expert advice on the local market and comparable sales
Best of all, you get these services at no cost, as the seller typically pays the buyer agent's commission.
What Signing a Buyer Agency Agreement Means for Agents For agents, having a signed Buyer Agency Agreement provides assurance that they will be compensated for the time and effort they spend helping a buyer find the right home. Without this agreement, it's possible for an agent to invest many hours in a buyer, only to have the buyer purchase through another agent, leaving them empty-handed.
Why You Should Insist on a Buyer Agency Agreement Signing a Buyer Agency Agreement is one of the smartest moves you can make as a homebuyer. Not only does it give you an expert advocate who is required to protect your interests, it costs you nothing. You can even specify a short initial contract period if you want to test the waters with an agent before committing to a longer term.
When interviewing potential buyer agents, make sure they walk you through the Buyer Agency Agreement and explain all the ways it benefits you. If an agent glosses over this crucial step or pressures you to waive your right to representation, consider it a red flag.
The bottom line? In today's competitive real estate market, you need every advantage you can get as a buyer. Insisting on a Buyer Agency Agreement is a savvy way to put a knowledgeable professional in your corner, at no cost to you. So when you're ready to start your home search, make signing a Buyer Agency Agreement your first step. Your wallet (and your peace of mind) will thank you.
