Are you using a buyer representation agreement, as an agent in Florida? Or as a seller? Though they are not much in use, here are a few good reasons to consider them. It is a well-known fact that real estate professionals use contracts when representing sellers and listing their property. If agencies never operate without contracts, why are buyer representation agreements not popular? Why are they not a standard procedure for buyer/seller transactions?
Buyer Representation Agreements Are No Easy Sell.
For starters, buyer representation agreements are not the easiest conversation between customers and real estate agents. Customers find it awkward to seek black-and-white answers about the services an agency seeks to provide, versus how they will compensate real estate professionals. It can be an equally difficult conversation for agents to have with prospective buyers, in the absence of a tangible benefit to them in exchange. Just saying “Assuring you of our best services” without something tangible, is a hard sell.
Getting Buy-in On Buyer Representation.
From a customer’s standpoint, an agent is an agent, is an agent. Ask anyone, and they will say that agents promise every conceivable service, wrapped in promises and slick sales talk. Naturally, they are wary of propositions and in no rush to sign up an agent. Much less, a buyer representation agreement, they are unfamiliar with – and this is a challenge. On the other hand, you as an agent should be careful about signing a customer who proves to be overly difficult in the long run. After all, who wants a buyer that will be difficult to work with?
This is why, engaging with prospective customers is helpful. Encourage prospective customers to visit your office and see for themselves the professional company you represent. As unfamiliar prospects, they may need reassurance. So, take time to respond to questions, however trivial they may seem. Build up the necessary comfort level, to facilitate a trustworthy future transaction. At the same time, use the opportunity to gauge your prospects, asking meaningful questions to ascertain their true motives.
Remember, your time is just as important as the customers’. And the time you invest in convening and convincing them to sign on the dotted line is worthy of compensation. The buyers’ agreement is the best measure of the value of your time, and the recognition it deserves.
Where Agreements Help.
To avoid a difficult conversation with customers, agents sometimes choose to operate without a signed agreement. The problem arises when buyers take over transactions midway, and exclude the agent from the transaction. Sometimes they start the selling/buying process with one agent and conclude it with a different agent. However difficult the process may seem, customers stand to benefit from this helpful real estate best practice. For many, buying or selling their property may be the most important transaction, of their lifetime. And they can benefit from the good governance an agreement provides.
The Benefits Of A Representation Agreement.
Though at first, it may not seem obvious, a buyer representation agreement does offer numerous benefits. Agents should help customers understand that such agreements promote mutually beneficial relationships. Firstly, agreements explain the agent’s role in serving the customer in a transaction, proving that the agency has the customer’s best interests at heart. Agreements serve as a charter of the services, the agent will provide to the customer. And last but not least, they spell out which party will compensate the real estate agent, and by how much.
Key Aspects Of A Buyer’s Agreement:
- Legal aspects – Specify the do’s and don’ts of what the law permits the transacting parties, including the agent. For instance, For example, Florida prohibits dual agency representation. Because, is not possible for an agent to act in the best interests of both, buyer and seller.
- Operational aspects – Specify the role and scope of services the real estate professional is responsible for. Vice versa, it should also highlight the buyer’s role in helping conclude a successful transaction. The agreement should mandate the timeline and key milestones in the transaction. In other words, it should have a start and stop date.
- Financial aspects – It must include the payment criteria and fee structure. Depending on an agency’s operations, agreements sometimes include a Termination Fee. This safeguards agents for expenses they incur on behalf of the buyer. Agreements can prove especially important when working with known parties like friends and family. Professional interests sometimes clash with personal relationships, creating disputes which are awkward to settle.
How We Can Help.
We are a locally based property manager in Pembroke Pines Florida, working with the top agencies across South Florida. With our exclusive partnerships with national and local vendors, we can provide top-quality services. Real Property Management Premier can arrange professional services for Florida Representation Agreements, with one of our many local experts across 18 cities in South Florida. When handled by us, you will save time and money and ensure transactions are handled professionally. Call us today!