Trust is a crucial ingredient in establishing a connection between a homebuyer and their real estate agent. And few tools can be as effective when building trust as a buyer agency agreement. By its very nature, a buyer’s agreement serves to protect the interests and efforts of agents and homebuyers alike. Yet, it’s common for prospective buyers to balk at the sight of that dotted line, seeming to forget its promise. Or at least it used to be common. These days, people are beginning to view the buyer agency agreement in a whole new light.
What is a Buyer Agency Agreement?
If you’ve never attempted to buy a home, you’ve also likely never heard of a buyer agency agreement. But it’s a common legal contract between a potential homebuyer and their chosen real estate agent. A buyer’s agreement clarifies an agent’s responsibilities to their client, the terms of representation, and the agent’s compensation. And somewhere between those lines, it makes the working relationship between an agent and a client official.
Three Main Reasons Buyers Won’t Sign Buyer’s Agreements
So why would a potential buyer be reticent to sign a buyer agency agreement? The big three reasons are as follows:
They’re Not Sure They’re Ready
Buying a home is often the biggest transaction of a person’s life, and you can choose whether we’re speaking about financially or emotionally. Sometimes, even when the keys are in the buyer’s hand, there’s still a little frightened voice in the back of their minds, repeating, “Am I ready for this?” Doubt breeds a profound fear of commitment that can feel all-encompassing when the buyer’s agreement paperwork comes out.
Maybe they haven’t had sufficient time to establish a connection with their agent. Or perhaps they’re still not sure about what they want in their home. They might just even feel intimidated by the legal language of the contract. Regardless of how you dress it up, many buyers balk at the buyer agency agreement because they don’t feel confident enough to sign something this early in the process.
They’re Afraid It Obligates Them
There’s plenty of room for confusion if an agent isn’t clearly communicating the details of a buyer agency agreement to their client. And this is another chief reason why prospective buyers hesitate to sign buyer’s agreements. There’s this misconception that it will obligate them to pay their buyer’s agent, even if they don’t end up finding and securing a home. Or that maybe they’ll be legally tied to an agent who ultimately doesn’t meet their needs.
Normally, these concerns can be solved with a brief conversation. But in some cases, a client doesn’t even know what questions to ask. In these situations, it’s up to the agent to be transparent, communicative, and proactive about the details of the buyer’s agreement. The sooner a client understands the contract, the more certain they are to sign it with confidence.
They Think It Will Limit Their Opportunities
Then, there’s the possibility that a prospective homebuyer has already started the process with several agents through online discourse in the hopes that the best road forward will make itself clear. To these buyers, it’s not so much doubt or a lack of confidence that limits them. It’s just that they don’t want to worry about any limitations. By refusing to sign the buyer’s agreement, they believe that they’re keeping the door open for any attractive opportunity that comes their way.
But this belief is short-sighted and, in its own way, just as restrictive. That’s because a buyer agency agreement offers a value that the buyer is otherwise missing.
The Benefits of Signing a Buyer Agency Agreement
Heightened Transparency
At JohnHart, our real estate professionals pride themselves on their transparency. But this is no longer just about honor or building trust. It’s about legal compliance. The industry is changing to clarify buyer agent compensation in the wake of several high-profile lawsuits. These changes are helping prospective buyers to better understand how a buyer’s agent compensation works and, hopefully, putting any concerns about hidden fees and restrictive obligations to rest.
Securing a Premium Experience
The old adage “You get what you pay for” may be a bit blunt when it comes to the benefits of a buyer agency agreement, but there’s also a kernel of truth to it. When you find an agent that you connect with, you’ll find the intensity with which they represent you often transcends a simple commission check. But when the commitment is mutual, as signaled by a buyer’s agreement, agents are more likely to take your search seriously, and they’ll often treat it accordingly. This can translate to a heightened determination at the negotiation table, insightful counsel, and a priority experience… all from signing a dotted line.
A Customized Experience
Some agents are even open to customizing a buyer agency agreement to more closely fit the needs of their clients. For example, a buyer’s agreement can be tailored to offer shorter waiting periods, include cancellation clauses, and more. It’s yet another way these contracts are being used to facilitate a simpler, more straightforward, and less intimidating homebuying experience.
The Empowering Nature of a Buyer Agency Agreement
With all of this in mind, many prospective homebuyers are beginning to reframe the buyer agency agreement as an opportunity for empowerment within the real estate world. And why not? It’s a document that, by its very nature, offers legal protection, devoted representation, and an added sense of security. But it’s up to agents to educate their clients on the benefits of a buyer’s agreement. The client also has a responsibility to ask the questions that will most directly address their concerns. After all, a buyer agency agreement should always be signed with confidence!
With a brand that says as much as JohnHart’s, Senior Copywriter Seth Styles never finds himself at a loss for words. Responsible for maintaining the voice of the company, he spends each day drafting marketing materials, blogs, bios, and agent resources that speak from the company’s collective mind and Hart… errr, heart.
Having spent over a decade in creative roles across a variety of industries, Seth brings with him vast experience in SEO practices, digital marketing, and all manner of professional writing with particular strength in blogging, content creation, and brand building. Gratitude, passion, and sincerity remain core tenets of his unwavering work ethic. The landscape of the industry changes daily, paralleling JohnHart’s efforts to {re}define real estate, but Seth works to maintain the company’s consistent message while offering both agents and clients a new echelon of service.
When not preserving the JohnHart essence in stirring copy, Seth puts his efforts into writing and illustrating an ongoing series entitled The Death of Romance. In addition, he adores spending quality time with his girlfriend and Romeo (his long-haired chihuahua mix), watching ‘70s and ‘80s horror movies, and reading (with a particular penchant for Victorian horror novels and authors Yukio Mishima and Bret Easton Ellis). He also occasionally records music as the vocalist and songwriter for his glam rock band, Peppermint Pumpkin.
