THE NEED FOR AN EXCLUSIVE BUYERS AGENT AGREEMENT

Why you want to be represented exclusively by one person in searching for homes.

So many times I have heard the question, when speaking with potential buying clients, “why should I sign exclusively with you, I will just work with the first agent that brings me a house that I like.”

I responded to one of my clients with the following answers, a little long and possibly winded, but I wanted to make sure that a good question was answered correctly.

1. Being your agent is only 10% about finding a house, 90% is protecting your rights in the transaction. You need to know and understand your legal rights, the history of any legal action the house or sellers have been involved in, insurance claims made against the home. This list goes on and on, you need a professional that knows what to look for, the signs that something is suspicious. It is not about finding a home with 3 bedrooms. The tools on the internet are open to anyone that cares to look, but does everyone know what is behind the listing? History of the listing etc.
   
   
   • It is the broker or sales agents job to make sure all the legal issues are explained to you and you fully understand them.
   
   
   • Make sure you have the proper people inspecting the house, insuring the house, and searching for a clean title.
   
   
   • To be sure the house is properly transferred by reading all documents produced by insurance companies, title companies and condo associations.
   
   
   • What does escrow mean, what are they asking for, is the seller asking for things that he is allowed? Is it optional? Do I have to?
   
   
   Buying a house is a long and difficult path, full of legal issues, buyer’s rights and obligations, financial pitfalls and of course getting everything you are expecting when you make that offer.
   
   
2. A broker or agent has a fiduciary responsibility to represent you to their fullest capabilities so nothing goes wrong in the transaction and you are protected from any wrong doing either maliciously or by accident. It is the highest responsibility that a person can give to a client.


3. I am a California Licensed Broker I have much greater knowledge of the legal issues and all aspects of the transaction then the normal sales agent that you will be dealing with. You will find most people who will approach you are sales agents working for a Broker. The Broker is usually an individual at a big named company that all agents report to. Most likely you will never have any dealings with the company’s broker only his sales agents.


4. You surround yourself with professionals of a certain quality that you trust in your personal life and business. People like your doctor, lawyer or accountant are the people you rely on time after time in their respective fields. You want to have the same type of person handling your Real Estate. Why have a sales agent working for you when you can have a licensed Broker. It is not a onetime event; they are someone you will need whenever you have questions or interests involving Real Estate. You want someone with the quality of professionalism and knowledge that you have in your doctor, lawyer or accountant.


5. As I touched on above you will eventually need a Real Estate professional to sell this house, buy a new house or make an investment. You want to build a relation. I am not looking for a quick transaction; I am looking for a client that will need my services in the years to come. Someone that wants to be kept up to date on timely market trends, investments with a good return or just have questions or problems about the house they just bought. Someone you can lean on to help you make the right decisions.


6. Everybody has access to all houses that are for sale, it is not hard to find houses. It is hard to find someone that has the knowledge you need and that you feel comfortable. You want someone that works for you to reach all your goals successfully, will search all avenues to find your house and will always be around to answer questions and take care of all your Real Estate needs.


7. I have touched on why you want an exclusive contract and what it brings you. Of course I also gain from this as follows:
   
   
   • I am investing a lot of time in finding you a house and then making sure the transaction gets done correctly. I need to be incentivized so I will work the hardest I can to find you a house. I know the time needed to get through escrow to closing, it is important for me to know that once I start working with you I will also be able to reach my goals.
   
   
   • If I know that whoever may stumble upon a house and has spent 1 hour of his time finding this house and that you would use that person as your representative why would I want to take the chance and work that hard for you in finding the house.
   
   
   • Remember everyone can find a house, it is the person that will work the hardest and however long it takes to find the house and who you want to represent you through the long and hard road to reach a closing.