Being selective

Or, how does Buyer Agency/Buyer Brokerage/ Exclusive Buyer Representation benefit the agent and the Buyer?

There has been a lot of discussion at RCG and Bloodhound recently about Buyers’ Agency and the associated compensation. I can speak specifically about the Commonwealth of Virginia’s Buyers’ Agency and and generally about the concept of Exclusive Representation.

A few items: First, I have said many times before that the real estate industry is going to have to move more towards representation of clients’ interests and somewhat less of “selling” and marketing, for a variety of reasons. One of the most basic reasons for this switch is that marketing is becoming easier, with the proliferation of new sites’ (read: Google (archived: 2014)) entry into the real estate marketing arena.

How do both parties benefit? Allen (archived: 2024) says:

I feel it is unprofessional to be working with someone when the obligations to each party are not clearly defined in writing. If you are in a “find out if you want to work together mode” that is one thing. But once you decide to work together then there should be written agreement stating what each party is obligate to.

I don’t necessarily agree that I need a written agreement that states what I am going to do (whatever it takes) nor I feel I need anything other than a handshake to work with clients. I do, however, think that both sides need an acknowledgment that we are going to be working together. It seems that the cutthroat aspect of this business has led to distrust and a general lack of loyalty – on both sides. Having a written agreement does at least begin to define that relationship.

Right now, Greg seems to be carrying the torch for elimination of dual agency.

We need to get rid of the Dual Agency aspect of the agreement, something I do verbally with my clients.

I don’t work with everyone I might, and part of that is that if I were to spend my time chasing every potential client, then I wouldn’t have time for my good clients. I feel that this makes me more professional and better at what I do. Giving 100% to my clients is something on which I pride myself and make my career.

I wish I could trust everybody I met. I’ve done deals on handshakes before, but far fewer than my father did. You cannot legislate or obligate a trusting relationship. Putting it in writing does seem to help.
For your edification, here is a Sample Exclusive Right to Represent Buyer Agreement.