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|  Fifteen Benefits of Working with a Buyer’s Representative Advanced tip Understanding Agency Broker tip Contract Terms for Buyer’s Representatives Qualifying the Buyer Advanced tip How Well Do You Listen? Advanced tip Who Are Today’s Buyers? Advanced tip Advanced: Psychographics —Understanding Buyer Motivation Prospecting for Buyers Working with Internet-Empowered Buyers Servicing the Buyer Advanced tips Closing the Deal Advanced tip Due Diligence and Disclosure Advanced tip Staying Safe While Showing Homes Broker tip When to Call It Quits Quiz: Buyer’s Representation Bright Ideas: Working With Buyers Code of Ethics: Working with Buyers More Resources: Working with Buyers Vendor Resources: Working with Buyers | CONTRACT TERMS FOR BUYER’S REPRESENTATIVES "A written agreement is a risk management tool," says Julie Garton-Good, GRI, an educator and buyer agency expert with Garton Seminars in Lenore, Idaho. "Liability goes sky-high without one." 5 Musts for a Buyer’s Representative Agreement 1. Exclusivity. Work with your attorney to word the buyer agency contract to protect your rights to receive a commission when the buyer purchases a home. 2. Purpose.Be specific about the buyers’ requirements, but don't hamstring yourself with too many details, such as high ceilings or hardwood floors. These might be items buyers want, but would seldom be sufficient to decide a buying decision. 3. Duration. The duration of the contract depends on the buyers’ timeframe. Include language that extends the term through the settlement date so it won't expire while you're finalizing the purchase. 4. Services. Explain what you’ll do on the buyer's behalf. Stick to standards that are objective and measurable. For example, say, “Show all homes listed on the MLS between these dates that fit within buyers’ stated parameters.” Don’t include vague language, such as “find the client a home to buy.” 5. Compensation. Clearly state the terms and method of your payment. TIP: The buyer, the seller, or the listing agent may compensate a buyer’s agent. The payment of compensation doesn’t create an agency relationship. A buyer’s agent owes fiduciary duties to the buyer, no matter who is paying compensation. Setting a Fee
Qualifying Buyers, next page > | Keep It Ethical You can’t accept a commission, rebate, or profit on services recommended to the client without the client’s knowledge and consent. Article 6 |