Buyer Agency Agreements

By robin June 9, 2024

Today I thought I would speak a bit about Buyer Agency Agreements, which is something that all buyers will now have to sign when they engage with an agent to show them homes. It is not something to be afraid of and it is something that is 100% negotiable. This will now exist in part because agents could spend hours working with a buyer who then ends up going under contract with a random agent that they barely know, or they just felt they owed no loyalty to the agent they were working with. Agents work on 100% commission and any good and full-time agent puts in a lot of time and effort to come up with the best homes to go on the showing list each week.

The Exclusive Buyer Agency Agreement is one in which the buyer agrees to only work with one agent during the agreed upon timeline. By signing, you are also committing to pay that agent a commission. It will outline everything that you can expect the agent to do for you during the
process. The first page will indicate the length of time which can be weeks or months. If you are meeting an agent for the first time to see homes and feel that you do not know enough about them to commit to yet, you can even ask for a one-day agreement. After that day, you can
decide if you feel that the agent is a good fit for you and if so, perhaps venture into a longer agreement.

The next element of the agreement will deal with the commission that will be owed to the agent when you are finally buying your home. Typically, it will be 2.5% but can vary. Most sellers in this area will continue to pay towards the buyer agent’s commission. If for instance the seller is
paying 2% and the agent has asked for 2.5%, then you would be responsible for that ½% at closing. Consider the situation, if you want a local expert to work hard for you and make sure you are guided successfully through the process of making this very important purchase, you
should sign. Sellers have been signing listing agreements forever. It will ultimately protect all parties.

The final part of the agreement will deal with a property description in terms of what your dream home looks like for you. You should try to be as clear as possible with your desires. In short, if you want the best results and the least amount of stress during the homebuying process, engage with a full-time agent, read the agreement carefully, don’t be afraid to negotiate and sign. Having someone with knowledge, negotiation skills and a person that is100% on your side as the buyer. This could make all the difference.


Fran-646-734-3718 or Randy 646-734-9077