In the fast-paced world of real estate, there are many factors that can pose an issue when attempting to purchase property, which is exactly why the role of a buyer’s agent has become more crucial than ever before.
Buyer representation agreements are a win-win proposition for both real estate professionals and consumers. Not only do these agreements help build trust by promoting transparency through up-front and honest conversations, but they also provide clarity regarding services clients can expect to receive, as well as how their real estate professional will be compensated for their time.
This transparency is crucial for all parties so Realtors can help educate consumers during one of the biggest and most complex transactions many make in their lifetime.
So what does a Buyer Representation Agreement contain? Simply put, it’s a legally binding agreement that details many crucial elements of the relationship, such as services, agency relationship and compensation.
Also, signing one at the beginning of the relationship protects both the broker and the buyer by avoiding misunderstandings.
Discussing the Buyer Representation Agreement helps ensure the homebuyer has a loyal advocate representing them in the transaction, including whether the agent is serving as a dual agent (someone who acts as both the buyer’s and seller’s agent in a transaction).
While jurisdictions vary in what is required in terms of written agreements, when it comes to compensation, most states require that any exclusive brokerage or agency relationship be in writing, and about half of states require written disclosure of an agency relationship in order for the real estate professional to be paid for their services.
To my fellow Realtors, this is a reminder to check where you fall in terms of requirements, ask your Realtor association for a buyer representation agreement form, and explain every provision of the agreement to a buyer client.
I encourage Realtors and individuals who are looking to learn more about the homebuying process to visit the website competition.realtor for infographics, informative articles and other resources to help facilitate these important conversations during a buyer representation meeting.
Purchasing property can be stressful, but the process goes much smoother when everyone is clear on all the details at the beginning of the process. Providing clarity to a complex process is a Realtor’s area of expertise.
Whether you’re looking to buy or sell property, utilizing the knowledge of a Realtor will help ensure that the process will go as smoothly as possible and you get the most value from your most important investment. That’s Who We R.
Founded in 1912, Greater Chattanooga Realtors is the voice for real estate in Greater Chattanooga. A regional organization with more than 2,700 members, Greater Chattanooga Realtors serves Hamilton and Sequatchie counties in southeast Tennessee and Catoosa, Dade and Walker counties in northwest Georgia.
The association is one of approximately 1,100 local associations and boards of Realtors nationwide that comprise the National Association of Realtors. Greater Chattanooga Realtors owns and operates a multiple listing service, which is one of approximately 600 MLSs in the country and services more than 3,000 users. Local association membership consists of Realtors servicing the Greater Chattanooga area and specializing in a variety of disciplines – appraisal, commercial, industrial, land, multifamily, property management and residential.
Working alongside Realtors are our affiliate members, who represent related industries in sympathy with the objectives of the association. Our affiliate members include mortgage lenders, home inspectors, title and closing services, pest inspection and control and insurance.