What is a Buyer Broker Agreement?
A buyer broker agreement is entered by between a buyer and a selling firm. This agreement must be in writing and states a timeframe for the contract and amount of commission. It also touches on what the broker will do to get the buyer the best deal possible.
Do Sellers have a Preference?
Traditionally, a seller will sign an agreement with a listing firm that states the commission amount based on the agreed upon sales prices. When a buyer is found and has an agent, the commission is usually split 50/50 between the two agents. Many buyers have the misconception that if they come without representation that the commission will be cut in half and that they will get a better deal. This is not necessarily the case as some firms have a policy that keeps the commission the same. Seller firms prefer when a buyer has an agent involved so they don’t have to help both parties through the process. It’s the job of both realtors to remove the emotion and keep the transaction professional as well as act as a resource for their respective parties.
Should I Sign a Buyer Broker Agreement?
If you seriously pursuing purchasing a home it is in your best interest to partner with a broker. Broker’s are there to represent you during a real estate transaction and can provide counsel throughout the process. Working with an agent will ensure you get the best deal on the home you want to purchase. It is important when choosing an agent to find one that has experience working with buyers.
Buyer broker agreements are becoming more commonplace. Despite the misconceptions many buyers have, these agreements can be very beneficial for both buyers and sellers. Before committing to an agent it is crucial to conduct interviews with multiple local agencies such as Affix Realty to ensure your agent is the best fit for you. Check out our related podcast for all you need to know about buyer broker agreements.