I'm appalled when buyers refuse to sign the buyers brokerage agreement, they always say the same thing "no other agent has asked me to sign one" so on, so on.....
Don't get me wrong, I have had buyers sign & closed with me, without a problem. I was speaking to another agent today that explained to me that in our market, Miami, this agreement does not work for us, that people don't understand the concept. I hate the fact that people just jump from one agent to another, it does not seem like a business. I'm getting my business together and I am trying to make changes, not be like the rest of the agents. This is my business and my time.
I guess if they don't sign they will not be a priority, I have to look up some scripts & explain it well.

You could do a showing agreement just for the properties they want to see, just tell them that this is just to ensure that you get paid for your time. Have them meet you at the office and explain it matter of factly not making a big deal out of it. Then, go out and show them the properties.

Once the relationship is established and they trust you, it's easier to move on to the next step which is the BB Agreement. Otherwise just keep updating the showing agreement for every property you show.

Ok, great idea.

Thanks,

It always bothers me too. Its like saying yes I am going to lie to you and use someone else by not signing.

I'd like to turn it around and say that buyers are skittish of signing an agreement that will lock them in to an agent who they have no idea is even competent. I don't automatically assume that they are out to screw me. I assume they are trying to protect themselves from being screwed by being tied to an idiot. It's my job to prove to them that I am not an idiot.

The only time I have been screwed like that by a buyer is when the listing agent, who also owned the house, went behind my back and offered the buyer a deal after she initially rejected our offer - she offered him a deal if he would drop me and buy from her. He had no loyalty, just dropped me like a hot potato w/ no notice or explanation; I learned of his duplicity when I saw the property transfer in the paper.

I have a non-exclusive buyer agency agreement that is just for that day, just for the properties we see, and is automatically extended by mutual consent when the buyer calls me for the next appointment. I don't force them to sign it but ask them too and when I explain it lightly and don't make a big deal out of it they have no problem signing it. I have only had one person refuse - an attorney of all things, who was actually mad that I was not the listing agent (he just assumed I was when he called me cause he saw the listing on my website.) There may have been one or two others who didn't sign but I don't remember.

I have never used a BB and have never had a problem until last week. I showed a client 38 homes over a period of a six weeks and they walked into an open house and bought the home. She e-mailed me to say they fell in love with the house and didn't mean to waste my time. These are past clients that I had a top notch working relationship with. They bought for 725K. I still believe most people are loyal and decent and hope that this is an exception and not a new rule.

I guess then she wasn't a "Client". She was just a "Customer".

I work full time in this gig and have never once heard an
agent refer to their charge as a customer, granted you are
right in your legal terminology. The term Customer sounds more
applicable to a retail outfit. The majority of the agents I
know don't use a BB, their average real estate trench time
would be 20 years.

Vermont, here, you do not need for there to be a Buyer agency agreement signed in order to be representing the buyer as a client.

Hunter, we deal with Customers all the time. Brokerages should be doing so in an attempt to avoid multiple representation when at all possible.

Do a good enough job that your clients will want to do business with you, and you won't have to force them into a contractual relationship. I don't say that to be pithy, but people are very wary of the "hi, nice to meet you, sign this contract please" approach. This implies that you don't trust them to be loyal to you--and people have a tendency to behave in the way you expect them to behave.

When I've done a BB agreement, I've only ever used a non-exclusive one, and only when the client broached the subject because *they* wanted some sort of reassurance that I was representing them.

In my mind, the best thing I can do to prevent my clients from "cheating" on me with another agent is to show that I trust them. Could I get burned? Sure...but even with a signed buyer-broker agreement, I could still get burned. (Plus, it's certainly questionable whether it's worth it for me to spend the time and energy--and damage to my reputation--to take a former client to court for a commission I felt I had should have earned.)

For me, the "work" doesn't even begin until we've reached the point of writing a purchase offer. Touring homes and talking to people about real estate is fun--it's something I do when I have downtime between clients anyway. At worst, I've lost a couple afternoons and got to see some listings I otherwise might not have seen. At best, I'll still actually get a sale or a referral out of the deal because the agent the buyers went with turned out to be a complete turkey (it's happened!).

You make a lot of good points and have a healthy perspective on this wonderful game. A client called me after this incident happened and wanted to look at homes in the same area, he is very impressed with my market knowledge which is a result of the previous customer/client. I have sold him homes in the past and will not ask him to sign a BB.

I do a lot of work for chartered accountants and many of them have terrible communications skills, the one in the above example was one of these, it was brutal trying to figure out were her thinking was at. All I can say is I did my best.

It's nice to hear from an agent that truly enjoys what they do.


MHT, you make a lot of sense, when a listing agent follows up on a showing
they want to know what you and your client think of their property, they
always refer to your buyer as the "client". I live my life by the "golden rule" and have no plans of changing this. Cause and Effect are the Chancellors of
god... Emmerson.

Hunter, that's amazing - I'll bet that agent that runs the open house won't say "Open houses don't work! Buyers at open houses never buy them!"

That said - maybe in the future for your buyers you could edjucamate them and tell them "Hey, I know you will probably want to drive around without me sometimes and go to open houses. If you do, that's great! Here are a few of my cards - give one to the open house agent so they know you are represented. If you fall in love anything, give me a call and we'll get to work on making it yours!"

Or something like that. A lot of buyers have no idea that they don't have to use the open house agent...and that's OUR fault, not theirs and not the open house agent's.

Unfortunately, the careless intermingling of the terms "Customer" and "Client" will unnecessarily lead to the accidental creation of an "Implied Agency" which can then carry with it most, if not all, of the responsibilities of Agency, including the care required when one bears a Fiduciary Responsibility.

I too have more than just a few decades of experience in this line of endeavor, and I have sat in on many Disciplinary Hearings where the complaining "Customers" thought some Licensed person was representing their best interests, and where they had come to confide in the Licensee as if they were truly "their Agent". Except in jurisdictions where permitted, it is always incumbent upon these Agents to immediately correct that mis-understanding to avoid the creation of an "Un-Disclosed Dual Agency".

Without actively correcting that mis-understanding, "Customers" do have a reasonable expectation to receive the care and protection that we afford our "Clients" . . . . and sooner or later, that will lead to problems. Like it or not, the terminology we use plays a role in fostering these expectations.

Perhaps the Canadians have not yet become quite as litigious as U.S. Citizens; but the financial swings in market values grow, and mistakes become increasingly serious, it will surely become an important aspect of your business as well. Take it or leave it.

I remember in one of my training classes when I first got into real estate, the trainer, an attorney, instructed us to use "customer" vs "client" for the same reasons you mentioned above regarding their expectations.

I remember the words of Bruce Aydt on "Implied Agency" when I took one of my GRI modules from him in my first year as a licensee..."If it walks like a duck and talks like a duck then it BETTER be a duck".
For those that don't know Bruce he has the Law and Ethics column in the NAR Realtor mag:
http://www.bruceaydt.com/

Our broker requires we do one at the first showing. In general most agents in our office do one "free" showing to get a feel for the customer. If they like us and want to continue to use us then we have them sign a Buyers Agency form and a Limited Agency form.

If we haven't had them sign before we write an offer, we absolutely must have them sign before we do the offer paperwork. By then it's not usually and issue. The ones who've refused to sign generally are already bouncing around with different Realtors so they aren't really worth the trouble in my mind.

Many agents in other offices have said they always meet new buyers in the office to go over these documents and get a feel for their needs. We haven't done that yet but may be that way once we get busier in the spring.

What Fl Agent Said -
I was licensed in Florida just before the agency law changed to elimenate dual agency and Transaction Brokersge became the norm used by the majority of brokerage firms. In spite of that. customers still referred to us as "their agent" and licensees still referred to "my client"

Being an AGENT brings a lot more responsibility in terms of what you MUST do versus what you CAN do. And even the implication of an agency relationship could mean years of litigation and heartache for all involved.

You make a good point, I didn't take the time to explain the process or edjumacate my lady. I'm not good at this due to a certain shyness/possible lazyness, need to overcome this issue. I did give her 20 business cards for their open house adventures. To be honest I still like these people.


The same thing happened to these guys but they didn't handle it
very well which is unfortunate as you will see.

http://www.youtube.com/watch?v=PM9wx3slsOA

I take in a lot of sign calls from buyers who want me to show them the listing, I always ask, Are you working with an agent?

I know many of you know the words that I am about to write. 6 times in 10 they say, "We have not signed anything with anyone."

Of course what I hear is, "Yes we are but we are willing to screw him/her if we think it is to our benefit."

Then I ask if they have been looking at houses with anyone. Well, so sand so showed us a few homes. At that point I ask them to tell so and so to give me a holla.

LOCALLY we are subject to periodic "compliance audits" by the regulators and in addition to the regular audit process they may choose one or more files at random or by design to examine more closely for violations.

One thing that must be present in the file is documentation of the agent advising a consumer (disclosure) of the various type relationships available to the consumer, such as a fiduciary relationship or a non-fiduciary relationship and when the required written disclosure was actually made and acknowledged by the consumer and the relationship that was established, if any by the consumer.

Therefore, our brokerage firm only "represent" buyer’s under a buyer brokerage agreement, referred to locally as a “Buyer Representation Agreement” We also make a point of explaining that if they had signed a similar agreement with another brokerage firm that the would be required to compensate both brokerage firms as originally agreed.

Further, we have a buyer’s registry where a brokerage firm who places a buyer under contract can register that buyer’s name in the registry and allows other brokerage firms to check on whether the buyer is under contract to another brokerage firm.

IMPORTANT NOTICE: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a Lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information.

Time is money. I don't know how else to say it. I can only work with so many clients at a time.

To work with me you have to show commitment and ability to purchase.If you can't show me that I don't have time for you as I have many other commercial buyers lined up that want to work with me. I want to achieve the highest ROI of my time as possible.It is close to the same time line to sell a 1 million dollar property as it is to sell a 5 million dollar property.

The other factor to time is how much business do they represent??

If I list one Family Dollar store and they own 20 others plus know other owners that is an important long term client.Especially if we get along well after the first transaction.

I have a few hundred investors that just want the deal when I list them and then about 15 to 20 I work closely with on a more daily basis that we get along great.

Had one buyer call me 1 week ago.Had about 600k in CD's and they weren't paying out squat.Commercial market is depressed so he wants to jump into the game.Is older and doesn't have a computer so I snail mail him properties. Told me to send him whatever agreement and he will sign it I didn't even mention it the buyer did.

If you can demonstrate that confidence in person or on the phone your passion will come across and they will want to work with you.It won't be forced it will just flow.One of the hardest things for some agents just making it is when they get a potential client they hold on for dear life.

The potential client senses this desperation and turns them off to using that agent.All of my clients respect my time as well as I do theirs.

So what I would say is do what others don't to become the best.I personally love reading the federal and state statute laws pertaining to real estate,banking finance,etc. Being able to intelligently converse on a myriad of topics shows the potential client you are well versed and knowledgeable about many subjects.

If you work with investor clients don't just know about contracts.Learn about rehabbing,cash on cash,ROI,debt service,taxes,1031 exchanges,county codes,city codes,new development,zoning,and on and on.

If you don't have much business use that time to learn and become a more valued commodity.Ask yourself why would anyone want to work with you for real estate??

If you answer because I give great customer service you are in serious trouble.

If you explain that the buyer brokers agreement contractually shows you represent the buyer as a client most will sign it.If you say it protects my commission if you try to screw me that won't make buyers jump up and down.

Super,

In Louisiana we have a state mandated "Agency" form for all buyers and sellers to sign, explaining our relationship. The Buyer-Broker agreement is strictly optional, as far an being required by any authority.

I only do residential, and am still torn on whether to require my buyers to sign it or not, because SO few agents use them, buyers are reluctant to sign any formal committment. I don't think as a consumer I would sign an obligation to work with someone exclusively before I have experienced any level of service from them.

My thoughts are to explain upfront that we will show them 2-3 properties, and if they want to continue our service, THEN we will sign a formal obligation to commit. Give them a "test drive" to see if we are a true fit. Any thoughts?

super realtor is absolutely right when he writes time is money and the best use for your spare time is to develop your knowledge.

Everything thing you do around real estate involves some law or regulation which you can read up on, together with reading real estate caselaw and learn from the mistakes of others.

It’s amazing how many times the courts interpretation of the law, differs from what some real estate organizations have mistakenly led some agents to believe, it’s like the blind leading the blind.

Locally, it is understood that if you are not working for the buyer, then in most instances you are acting as a sub-agent of the listing broker, and if you are doing neither, then you are in the wrong business.

I, only represent clients who are qualified and committed and I don’t sugar-coat the agency explanation and put it to the prospect plain and simple, do you want me working for you or against you. If you don’t want me as you agent, then I won’t take up anymore of your time.

@Andy,



I like your take on this thread and have explained this very same idea to some others as well. I couldn't have said it any better.

-Keith