If you’re a buyer’s agent, should you use a buyer-broker agreement? Peter Lorimer of PLG Estates talks about what this is and if it’s appropriate to use.
I’ve been fortunate in that I’ve worked with quality clientele who’ve been loyal to me. This is in large part because I’ve asked for their loyalty.
However, there’s a document in real estate called the buyer-broker agreement. It essentially locks a buyer into working with a buyer’s agent, and if the buyer ends up buying with another agent, you still get the commission.
Sounds like a good idea in theory, right?
However, it’s a bit like a prenuptial agreement. My thought is: why would you enter into a relationship with a document that indicates that you may not trust the other person?
I’d prefer to start a relationship on a level playing field based on trust. My advice is not to use one.
Because if I’m a buyer and my agent says, “Sign this before I show you houses,” I’d feel untrusting about it.
So instead, I would just say to look your buyers in the eye, put out your hand and say, “I’m going to work really hard for you, and I all ask in return is your loyalty. Is that cool with you?”
That should suffice.