Michelle E Davis, Converting Transactions into Relationships! (Keller Williams Greater Cleveland Southeast)

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Rainmaker
1,050,732
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I've used them for 18 years. I've only had to enforce one once. I think agents that do not use them under value themselves. When in business would you not cement a professional relationship without a contract...you make sellers sign them...why not buyers? I'm a small business, professional entrepreneur...I use them...they carry the same weight as a listing contract. 

Jan 17, 2017 06:40 PM
Rainmaker
3,499,099
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I use them because they are required to earn a commission for a listing that says it will only compensate a buyer's agent and also as a way of explaining to my clients that I am there to represent only their best interests. But I don't use them upfront to "lock in" a buyer... let's face it, at the end of the day if they decide they don't want to work with you, you'll release them. I can't believe one would hold them hostage.

Jan 18, 2017 04:29 AM
Ambassador
1,308,302
Susan Emo
Sotheby's International Realty Canada - Brokerage - Kingston, ON
Kingston and the 1000 Islands Area

I use them and always have.  Mainly to protect me from other agents, not buyers.  I've been successful in reclaiming my $ from other brokerages.

Jan 17, 2017 06:52 PM
Rainmaker
1,592,646
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

No better than the paper they are printed on. All the prinicpal has to state is that in their opinion, you are not adequately representing them and BOOM; Gone~!

Jan 18, 2017 07:30 AM
Rainmaker
1,593,215
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

If your broker doesn't have your back, I would think it's time to move on.

Jan 18, 2017 03:14 AM
Rainmaker
426,038
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

It depends on the broker, some will and some won't.  I always ask my buyer to sign the Buyer Representation Agreement, even for 1 week.  I have attended a class taught by one of the attorneys who wrote the TREC contracts. He said because there's a 3 types of agencies (one representing the buyer, one representing the seller, one as an intermediary) and there's a subagency in the MLS if the buyer doesn't want to sign the representation agreement then the agent works as the subagent of the seller. The agent can write an offer or show properties to buyers but looking after the seller's interest.

Jan 18, 2017 12:37 PM
Rainmaker
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Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I am bothered by the fact that a broker will not back an agent.  I personally do not use them. Its a personal choice. It has nothing to do with under valuing myself. To the contrary ... I am confident in what I do and how I serve my clients ... papering that with a 14 page agreement just feels unnecessary. 

Jan 18, 2017 10:34 AM
Rainmaker
5,392,770
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I believe they do, but most agents do not use them..... I love the listing end.... always an mls exclusive right to sell!!!!

Jan 18, 2017 08:31 AM
Ambassador
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Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

It is a great start

Jan 18, 2017 05:25 AM
Rainmaker
3,488,563
Richard Weeks
Dallas, TX
REALTOR®, Broker

It is always best to establish that agency relationship in writing.  Also if a buyer will not sign one they probably are not going to buy.

Jan 18, 2017 05:21 AM
Rainmaker
3,066,356
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Thomas J. Nelson, Realtor, CRS nailed this one!

Jan 18, 2017 05:10 AM
Rainmaker
578,245
Eve Alexander
Buyers Broker of Florida - Orlando, FL
Exclusively Representing ONLY Orlando Home Buyers

I have enforced twice, not for myself but for my agents sake.  Got paid on both...one made payments for 2 years.

Brokers who worry about their reputation more than their agents income have missed the boat...there is nothing wrong with expecting someone to live up to a contract they signed.

One time I had a heafty deal where at the last minute the seller decided NOT TO SELL to my buyer.  The listing office sat on their thumbs and decided to do nothing about the commission that was owed (my commission was in the contract).  I faxed the seller a letter telling them that I still expected to get paid.  He acquised and closed. 

Not even a thank you from the big franchise office that made tens of thousands thanks to me.

Eve

Ps: This should be the same thing with referrals that don't want to pay.

 

 

Jan 18, 2017 03:46 AM
Rainmaker
4,926,419
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

I agree with Nina Hollander /

Jan 18, 2017 10:24 PM
Ambassador
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Dang... Nina Hollander has my answer. I had this come up where only a buyer's agent was given a commission. 

Jan 18, 2017 07:18 PM
Rainmaker
3,480,496
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I am a firm believe that you should explain them to the buyer and sue them on the first day!

 

Jan 18, 2017 02:47 PM
Rainmaker
775,922
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

In CT, we are a Buyer Agency state, which means these agreements are mandatory for agents if they are taking buyers around. Alas, many don't bother. Some attorneys ask for a copy before handing out a commission check, that would be the only way to make sure there is an agreement, but then the agent runs out to "fetch it from the car" and has it signed quickly, if buyers go along with it. So you definitely have a point.

Jan 18, 2017 12:07 PM
Rainmaker
590,089
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
Summit Real Estate Santa Clarita & OC Laguna Nigel

Absolutely, they are enforceable and binding.

Jan 18, 2017 10:28 AM
Rainmaker
563,217
Maria Sapio
Keller Williams of Central PA - Carlisle, PA
Real Estate Agent- Carlisle, PA. Mariasapio.com

A written agreement is step one - then keeping copies of all correspondence and docs is step two...

Jan 18, 2017 10:15 AM
Rainmaker
4,798,831
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

There are mixed results in most cases.

Jan 18, 2017 08:17 AM
Rainmaker
1,411,727
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Michelle E Davis BBA's are mandatory in my State. Never had to enforce one.

Jan 18, 2017 07:35 AM
Rainmaker
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Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

They can yes, but often not worth the paper on which they are written

Jan 18, 2017 07:33 AM
Rainmaker
1,482,768
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Maybe the problem isn't with the Buyer Representation Agreement.  Maybe you have the wrong broker?  

Jan 18, 2017 07:29 AM
Rainmaker
2,558,350
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

The best agreement one can have is between two decent people....

Jan 18, 2017 07:00 AM
Rainmaker
3,640,959
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

The dishonest will always break the rules and the litigation cost may turn off most brokers. It is a way of reminding people to be honest! Personal decision!

Jan 18, 2017 06:34 AM
Rainmaker
336,304
Shirley Coomer
Keller Williams Realty Sonoran Living - Phoenix, AZ
Realtor, Keller Williams Realty, Phoenix Az

I think this demonstrates to the buyer and agent you are committed to working together and the buyer understands this is how we get paid.  However,   I tell buyers if they no longer want to work with me OR I no longer want to work with them we will cancel the agreement.

Jan 18, 2017 06:24 AM
Rainmaker
1,917,366
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

You might have to enforce them from time to time

Jan 18, 2017 05:39 AM
Rainmaker
3,184,487
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I tend to agree. I do think the agreement does keep most buyers honest, but those who will roam, will do so with or without an agreement and when caught, they go on an offense most want to avoid

Jan 18, 2017 05:15 AM
Rainmaker
790,616
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Do everything as if you will need to go to court. If a judge ask to see a copy of you Buyer Broker Agreement, and you don't have one, there is nothing to enforce. Case closed-Next case. If you do have one, at least the judge can read it, then analyze the agreement, ask the person to explain why they aren't honoring it, and make a ruling. So they can offer some protections, and it might help make other agents think twice about trying to steal a buyer you've been working with.

Jan 18, 2017 04:36 AM
Rainmaker
5,890,491
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Verbal agreements or assumptions provide no protection at all.

Jan 18, 2017 03:59 AM
Rainer
3,260
Scott Willhite
Seattle Real Estate | AlkiHomes.com - Seattle, WA
Serving Alki Beach & Fine Seattle Neighborhoods

It's a terrific question, Michelle.

Sometimes, in fact I would say *most* times, the conversation is worth more than the paper. We are often so close to our profession that we forget that clients don't really do this that often. Sometimes, they simply don't know the etiquette of working with a Realtor.

Our business is largely referral business. This is a reflection of time spent getting to know and educate our clients. Whether clients actually sign agreements or not, as part of our inital conversations they learn about the services that we can provide and why it is in their best interest to select a particular agent to work with (hopefully, and usually, us).

We find that being proactive on the front end, educating (whether they sign or not), pays great dividends, avoiding the kind of circumstances that necessitate buyer agreements in the first place. So I would say you are *not* wasting your time, in fact if you're doing it well... you're building trust and confidence into clients who will refer you future business.

Jan 18, 2017 03:16 AM
Ambassador
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

As long as your  clients are honest they may protect you.

Jan 18, 2017 03:12 AM
Rainmaker
686,609
Paul Antonelli
Antonelli Realty - Saint Cloud, FL
Broker Owner; Antonelli Realty

We dont use them enough

Jan 18, 2017 12:20 AM
Rainmaker
779,015
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Don't discount the implied enforceability.

Jan 17, 2017 07:41 PM
Ambassador
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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

If your owner/broker has your back...

Jan 17, 2017 06:26 PM
Ambassador
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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Michelle E Davis - if they are going to do what they are, it is not prudent to go legally after such buyers.

Jan 22, 2017 11:42 PM
Rainer
60,080
Michelle E Davis
Keller Williams Greater Cleveland Southeast - Cleveland, OH
Converting Transactions into Relationships!

 

I totally agree with many of you and I do use the Buyer Representation Agreement faithfully because it is necessary that our working relationship be solidified in writing (just like we do with sellers).  In addition, these agreements are very important because they help us to explaining agency and how we get paid to our buyers.  The harsh reality is that if you are an agent with a broker that refuses to enforce them on your behalf, these agreements do not protect us but they do give us some “hope”.  We can only hope that our buyers understand and respect us enough to honor the agreement.  Otherwise, we will be left with no real recourse. I really appreciate all the responses and insight that I have received on this question.  This is an awesome group and ActiveRainers truly rock!  Have a wonderful weekend!

 

Jan 20, 2017 05:29 PM
Rainmaker
4,387,676
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

For the most part yes, but there are situations that could happen.

Jan 19, 2017 03:25 PM
Rainmaker
3,985,581
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Yes, when written properly

Jan 18, 2017 08:44 PM
Rainmaker
583,975
Nathan Gesner
American West Realty and Management - Cody, WY
Broker / Property Manager

They do and I don't think they are used enough.

Jan 18, 2017 07:19 PM
Rainmaker
1,307,192
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I have only used them once, when I was working with a buyer I brought to a house under remodel.  I had one instance last year where a buyer (unknown to me) was using two agents (but liked me better).  In that instance the buyer agreement would have brought that issue to light much sooner.  In the end, I had brought the client to the house and wrote an offer which was accepted.

 

When they were first introduced here they had the "oh that agent doesn't trust their client" stigma and for me that never washed off.  I have not lost money or sleep over not signing them and neither has my broker (who's been doing this for 30+ years, before those forms even existed).

Jan 18, 2017 07:11 PM
Rainmaker
4,432,941
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I do not know.

Jan 18, 2017 01:15 PM