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Real Estate Fight Club

15
Mar 2021

Do You Use Buyer Agreements? EP77

March 15, 2021

In this episode of the Realtor Fight Club podcast, hosts Jenn Murtland and Monica Weakley are ready to throw down over today's topic. Should you sign a buyer agreement? Monica gets under Jenn’s skin on this one!

 

Episode Highlights: 

  • Jenn thinks that there’s no excuse not to sign a buyer’s rep agreement because contracts are part of a business transaction.
  • While she’s not against people signing a buyer’s rep agreement, Monica does not think it’s always necessary.
  • When Monica was asked to teach her entire office how to use buyer agreements, she stopped using them herself.
  • Monica has seen no difference between the time that she used buyer’s rep agreements and when she hasn’t.
  • Contracts aren’t really worth anything if one of the parties is not of sound mind.
  • Jenn believes that contracts, while worthless, give you options if the agreement is not honored.
  • People expect to sign a contract when engaging with any business regardless if it is a contractor or an accountant.
  • Monica finds an issue with agents that do not set any sort of expectation or some sort of agreement.
  • Jenn fears that buyers who employ agents without a contract are susceptible to being scammed.
  • It’s hard for Monica to argue the benefits of having a contract, but she hasn’t had any troubles without one.
  • By not using a contract, Monica risks the possibility of getting burned by a buyer using another agent.
  • People aren’t intentionally looking to screw over agents, but they don’t know what they don’t know.
  • Jenn is a fan of having more choices with everything in life, but she does have  a problem with the number of different chips available at the grocery store.
  • To the surprise of everyone involved, most people agreed with Monica’s stance.
  • If you are choosing not to have the buyer sign a contract, ensure to set the expectations at the buyer consultation.
  • Erin Fay acts as mostly a buyer agent in Cincinnati and Northern Kentucky with Comey & Shepherd.
  • Never in her career has Erin ever had a buyer sign a buyer’s rep agreement, nor does she know any in her area that uses them.
  • Erin has only been ghosted 10-15 times in her 10-year career without using an agreement.
  • When getting a listing, Erin has her sellers sign a contract because she sees the relationship as different.
  • For first-time home buyers and those that haven’t bought a home for many years, Erin always ensures to do a buyer consultation.

 

3 Key Points:

  1. By not setting a date and pre-signing the cancellation agreement, Jenn gives both parties the option to cancel if the contract is not upheld.
  2. Whether or not you use a buyer’s rep contract, Monica and Jenn agree that there must be a buyer consultation in which expectations are set.
  3. When engaging with most businesses, including real estate agents, people expect to sign some sort of agreement. Make sure you protect yourself and the client.

Resources Mentioned: