Dual agency becomes a problem when issues arise between buyer and seller. The company cannot fully go to bat for either side, because dual agents are required by law to remain neutral to both parties. Since problems can and do arise between buyers and sellers, it is better for buyers to eliminate the possiblity of such conflicts of interest before stepping into the market. Engaging the services of an experienced exclusive buyer’s agent is a good way for buyers to avoid dual agency and its inherent risks.

As the general public becomes more aware of these risks, we will see more buyers come to know and understand the value of buyer agency agreements; especially, exclusive buyer agency agreements, which is used to engage the services of an exclusive buyer agent (EBA).

Sure, why not? I’ve told you before that when I see a benefit to the buyer, I DO offer them a written agreement.

I negotiate the commission at first contact, or shortly after first contact with a buyer client. If that negotiation results in a fee that is less than the amount I expect will be offered by the seller of the property they will eventually buy, I ask them if they want a contract or not. It protects them, as they otherwise have no recourse really, if I accept the full amount offered, the system being as it is.

Not one has wanted the contract to protect themselves. Honestly, I am surprised by that, particularly the client who had about $12,000 coming to them based on our verbal agreement. You’d think they would want to have that in writing. While trust is the basis for a relationship, I’d think trusting someone to give you $12,000 is a lot to ask, so I offer the written agreement.

In the end, they ended up with $12,700. I’ve been to their house since it closed, they came to my house for Thanksgiving and she just called me from the hospital to let us know they that their babies came the day after Thanksgiving.

When I offer a contract I make it clear that whether or not they sign one does not affect how I work for them. There is no “value added” except the protections afforded them for me to put our verbal agreement, particularly as to how to treat commission issues, in writing. I honestly don’t care if they sign it or not.

The only time I want a written agreement, is when I am approaching unrepresented sellers on the buyer’s behalf. That doesn’t really work though, as it is still difficult for the seller to understand that I am not acting as a Dual Agent.

Nothing in this thread was about a seller. What has that got to do with monetary conflicts for buyer agents???

Now, back to the discussion. Do you pick Door Number 1 or Door Number 2?

Russ

I believe the discussion was about what a SELLER should offer. Are you saying to sellers that they don’t need to worry about that? That they can leave that between the buyer and buyer’s agent to figure out. Is that good advice for a seller today?

Let’s see, either (1) sign an agreement and your agent won’t have a financial conflict when deciding what house to show you or (2) don’t sign an agreement and have the uncertainty of whether some seller’s SOC will determine if you even find out about an available house that you might love. Monty, I pick Door Number 1.

Russ

Who does want “transparency” anyway. Is it just the new “buzzword”? Where did it come from?

Look around the Country. Look at NYC where the agent apparently represents the seller if the buyer doesn’t sign one, and Christine has not seen a one. Not necessarily a viable option to think that EVERY buyer will be signing agreements anytime soon. They’ve been waiting over ten years in NYC

Doesn’t solve the problem of what a seller is to do with regard to the mls offering, not now and not in the forseeable future.

AMEN!

-Russ