What is an Exclusive Buyer Agency Agreement and why you should always have your clients sign it before spending your valuable time showing property to them.
Today we are going to be talking about Exclusive Buyer Agency Agreements. I’ve been coaching real estate agents and teams for almost 30 years. Anyone with experience will recommend the use of an Exclusive Buyer Agency Agreement. All of the successful agents and teams I’ve come to know have used them, too.
Interestingly enough, the majority of agents do not use an Exclusive Buyer Agency Agreement. I’ve seen both sides of the issue and I’ve been in both camps at different times. But, through my experience, I’ve come to the conclusion that an exclusive agreement is a must. And here’s why.
VIDEO: Why Use an Exclusive Buyer Agency Agreement
Here at Icenhower Coaching and Consulting, we coach many of the highest producing agents and teams in North America. We support our clients and look out for their best interest. Exclusive Buyer Agency Agreements are not just for agents. They are actually for the clients as well, too.
No agreement? Don’t expect loyalty
If you do not have a written agreement that you are going to represent a buyer, by default, the buyer is going to think that it is appropriate and ethical to use whatever agent shows him the house. That is the default. Of course, if you know someone on a personal level, loyalty does come into play and may manifest itself into guilt or obligation. Unless you are tightly connected to someone in a meaningful way, they will not feel obligated to use you. They will go with the agent that shows them the house they ultimately buy. In their eyes, this is fair.
If you expect someone to feel obligated to use you, you must make it clear. And that is the whole reason to have an agreement. You clearly define exactly what you will do for your client, and also make sure that expectations are set so that you begin working for them right away.
Get the agreement signed FIRST
Do not begin showing homes to a client unless you have a signed Exclusive Buyer Agency Agreement. You take a risk if you decide to go forward and put time and energy to find them a home before defining your relationship.
Exclusive Buyer Agency Agreements are signed at a rate of 98-99%. It’s very rare that a client is unwilling to sign the agreement. If they are unwilling to sign one, it’s likely that they know another real estate agent that they are thinking about using. Isn’t it great that you figured that out ahead of time?
Exclusive Buyer Agency Agreements are good for clients, too
The fact is, most people are very impressed when you express your expectations up front. Clients appreciation clarity and knowing that you are going to be hard at work. When things become official, the reassurance works both ways.
Getting your Exclusive Buyer Agency Agreement signed before showing any houses looks professional. Don’t wait until you are showing them houses. It’s awkward to show a house and then say, by the way, can you sign this? You are a real estate professional. Make it clear that your time is valuable, and your client’s time is valuable, too. Bring them into the office. Plan your attack. And right then and there, present them with the agreement to sign. Make your expectations clear and protect your time. You will have a much happier career in real estate and a better work/life balance when you respect yourself enough to implement this into your process.