But don`t worry. If an agent you want to work with presents you with a buyer`s agent agreement, it`s not a sign that you`re going over your head. If you understand what`s in the contract, ask the right questions and work with your agent to negotiate a deal that works for both of you, you can trust that you`re about to find your new home. The agreement should describe the nature of the property to be acquired and its price range. For example, if the property to be acquired is described as a detached house, you are free to follow a 20-unit building through another real estate agent. If the acquisition parameters limit the contract to real estate in a particular county and you decide to buy in a neighboring county, you are not bound by the terms of your buyer brokerage contract. But before you sign anything, you need to make sure that the right conditions are described – this is the only way to make the buyer`s agent agreement work for you. So how do you know the right conditions and the bad conditions? Look at our breakdown, what you should look for and what it means to you. In these cases, the commission is often added to the sale price and then paid by the buyer to the broker as part of the financing. If the buyer is able to purchase the property at a substantial discount by the power of the broker/agent`s ability to trade, the broker/agent will have more than earned their fees. Exclusive representation means that the broker/agent is employed by the buyer and works assiduously on behalf of the buyer. While non-exclusive contractual terms may apply for one or two months, the exclusive terms of the contract generally apply somewhere between 30 days and one year. If the buyer decides to acquire a property that has been presented to him by the agent at a later date, he will owe the agency a commission.
Exclusive representation gives the broker/agent the opportunity to negotiate on behalf of the buyer with unrepresented sellers (z.B. for sale by the owner). Compensation: You`ve probably heard that the home seller normally pays both sellers` commissions and buyer agents (yay!). But that doesn`t mean you can just jump into the compensation business if you`re going to sign your buyer`s agent agreement. It is very important to understand exactly why you are on the hook in case a seller refuses to pay or violates the terms of the buyer`s agent agreement. Agent Bonds: There will probably be a description of your agent`s obligations somewhere in your buyer`s agent agreement. Expect responsibilities such as: finding and showing potential homes, writing and negotiating offers and endorsements, or making sure everything happens in the terms of your contract. If you`re watching this section with your agent, it`s a good time to know the expectations on the same page – such as planning settings or communication style – for your home shopping experience.
