Buyer agreements have always been around, and the primary reason for using them up until now has been to protect you, the agent, from buyers looking at properties with you and then purchasing that same property with another agent.

A non-exclusive buyer agreement does not lock the buyer into using any one agent, but they commit the buyer to buy the property through that agent if they show it to them. It seems fair and reasonable for everyone, and agents have been using them for a long time.

There are also exclusive buyer agreements that commit the buyer to one agent for a time. With these agreements, the buyer is committed to using the agent for any property they buy, period.

This is a much heavier ask of the buyer, and most of them will not appreciate the restriction that this creates for them, at least at this point. 

Even though they will probably stay with you as their agent, these agreements are sometimes just too much for them psychologically. You will have to decide if using an exclusive buyer agreement may be better for a certain customer. There may be times when this will be the tool to use; remember that you may scare some buyers away with the exclusive buyer agreement.

Here’s why buyer agreements are good for buyers

Remember that buyer agreements are also good for the buyers because by signing one, they will get an agent who is not afraid of going the extra mile for them with all the services that need to be performed on the buy side in finding that perfect home.

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Commercial agents have always done business this way and received their pay from the buy side. You may want to talk to your commercial friends to see that this will not end the world as we know it.

Just be aware that it may become more commonplace on the residential side, so we should prepare for it and always look for when to use our buyer agreements by checking that compensation on the MLS.

Your 3 reasons to use a buyer agreement

  1. To get paid by the buyer when the seller is not offering enough compensation.
  2. To prevent the buyer from buying the property directly from the owner or with another agent after you find it and show it to them. Nothing has changed with this one.
  3. To create an agreement between you and your customer that protects both of you so that you both feel comfortable working with each other.

So, when we look at buyer agreements, they are not new. Some agents are seeing the need for these in their marketplace and others not at all.

Many agents that I speak with covering various price ranges feel that not much will change anytime soon as their sellers understand the value of offering good compensation, which will always be an intelligent way to sell a home and always will be the seller’s choice. This is especially true in the high-end luxury space.

Sellers want to sell fast and remember that sellers offering compensation, when done correctly, is OK and will continue to be a valuable tool for sellers to get the highest amount for their property in the shortest amount of time.

Joseph Santini is a managing broker at Coldwell Banker Realty in Boca Raton, Florida. Connect with him on LinkedIn and TikTok.

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