If you`re thinking of buying a home, it`s important to understand the different types of buyer agency agreements available to you. One of the most common agreements is the exclusive-agency buyer agency agreement.
What is an exclusive-agency buyer agency agreement?
An exclusive-agency buyer agency agreement is a contract between a buyer and a real estate agent or broker that gives the agent exclusivity for a set period of time. This means that the agent is the only one who can represent the buyer in negotiations with sellers and other agents.
How does it work?
When a buyer signs an exclusive-agency buyer agency agreement, they agree to work exclusively with a particular agent or broker. The agreement typically lasts for a set period of time, such as 90 days or six months.
During this time, the agent is responsible for finding suitable properties, scheduling showings, and negotiating with sellers and other agents on the buyer`s behalf. The agent earns a commission when the sale is closed, typically paid by the seller.
What are the benefits?
There are several benefits to signing an exclusive-agency buyer agency agreement. One of the most significant is that the buyer has the agent`s full attention and support throughout the home-buying process. The agent is committed to finding the best possible properties for the buyer and negotiating the best possible deals.
Another benefit is that the agent has a better understanding of the buyer`s needs and preferences. They can tailor their search to properties that match the buyer`s criteria, making it more likely that the buyer will find their dream home.
Finally, the exclusive-agency buyer agency agreement can give the buyer a better chance of getting their offer accepted. Because the agent has developed a relationship with the seller`s agent, they may be more likely to negotiate in good faith and work towards a mutually beneficial agreement.
What are the risks?
Like any legal contract, there are risks associated with signing an exclusive-agency buyer agency agreement. One of the biggest risks is that the buyer may become locked in with an agent who is not a good fit. If the agent is unresponsive, unprofessional, or simply doesn`t understand the buyer`s needs, it can be difficult to break the agreement.
Another risk is that the buyer may miss out on properties that are not listed with the agent. Because the agent only has access to properties listed in the MLS (Multiple Listing Service), they may not be aware of off-market or pocket listings.
An exclusive-agency buyer agency agreement can be a powerful tool for home buyers. It gives them the exclusive attention of a professional real estate agent who is committed to finding the best properties, negotiating the best deals, and ensuring a smooth home-buying process. However, it`s important to understand the risks associated with this type of agreement and to choose an agent who is a good fit.