For first-time home buyers, or those who haven’t purchased a home in a while, the mention of a Buyer Agreement contract may make you wonder if it’s necessary. It’s not only necessary for great service, it’s also necessary part of the paperwork to buy a home with a Realtor.
In this video I’m discussing what the contract covers in general and what you can expect. I also talk about why signing the contract is an advantage for you!
There are some main points you’ll want to consider:
- The contract is going to introduce you to the Relationship between you an your Realtor. You’re essentially agreeing that you’re choosing your agent to represent your BEST interest, provide fiduciary duty, and protect your confidentiality as their client. This is known as a Client relationship, the highest form of obligation. The other alternative is to be served in a Customer Service fashion which is more of a way to document the services provided to a buyer or seller and is provisioned with a restricted level of service while maintaining honesty, fairness and integrity.
My clients always choose “Client”. The other way to put this is that I choose to work with Clients and not Customers. It’s simply the most effective, advantageous way to buy a home.
- You will discuss the term of the agreement ex. 6 months or 1 year
- There is an understanding that your Realtor is representing the Brokerage and the Agreement is between you and the Brokerage your Realtor is working for.
- It will outline what commissions are due. In most cases as a buyer, you are not going to be paying a fee to your Realtor’s brokerage. For the most part, this fee is already decided between the Seller of the home you will purchase and their Listing Agent.
- If you want to break up with your Realtor, it’s good to tell them why so they can have a chance to do a better job or at least improve their service in the future. If you don’t want to tell them why, then it’s a good idea to let them know you don’t want to work with them anymore before moving on.
Ultimately, having a Realtor to assist you in the buying process is more than just helping you with paperwork. There are a lot of details that happen behind the scenes and you’ll want to work with someone who does this as their full-time job. It’s important that your agent be familiar with the activity in a thriving real estate market like Waterloo-Region.
Watch the video for additional info not covered here!