What Is A Buyers Rep Agreement?
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Confused on what exactly a buyers rep agreement is?
If you’re a home buyer in LA who has already started their home search and is working with an LA buyers agent, you will more than likely come across a buyer representation agreement and be asked to sign one.
But what is it? Do you need to sign it? Can you get out of it?
Los Angeles buyers agent, Craig Thomas, will break down everything you need to know about a Buyer Representation Agreement.
Below we cover in greater details a buyers representation agreement.
What is A Buyers Rep Agreement?
A buyers rep will be a contractual agreement between the buyers agent in Los Angeles and you the individual(s) looking to buy a home.
The buyers rep agreement will form an exclusive representation relationship between both parties.
The contracted agent will become your Los Angeles buyers agent in the real estate transaction you two share.
Therefore, you (the buyer) will receive the knowledge and expertise by the Los Angeles buyers agent when finding, going through and negotiating the offer of your desired home.
They may also be referred to as:
- Buyers rep
- Buyer representation contract
- Or buyers representation agreement form
Is A Buyers Representation Agreement Required By Law?
No, a buyer rep agreement in California is not required by law.
However, it is still a huge benefit to have on both sides as it will strengthen the partnership and trust between the home buyer an LA buyers agent.
- Avoid confusion: A buyers representation agreement will have written out what is expected from your Los Angeles buyers agent and in turn, what they are expecting from you. Numerous studios shows that one of the biggest problems come from lack of communication or clarity. So as a home buyer it will benefit you to have everything written out for what your buyers agent in LA will be performing during your home search (and what they won’t be). It’s important to know that one of the key component is a buyers rep is trust and loyalty between both parties.
- You’re now a client. Not a customer: After signing a buyers rep agreement, you become a client to the buyers agent in LA. Not a shaky or “potential” customer. After becoming a client you receive top-tier service due to formalizing a relationship with your buyers rep. Check with your LA buyers agent in specific details as they vary from buyers agent to agent and even state by state.
- Strengthen your home buying relationship: You and your buyers agent have now formalized and strengthened your working relationship. Which will lead to a better home buying experience.
- Not working out? It’s easy to get out: After signing a California buyers rep agreement, you may want to part ways wit your LA buyers agent (or vice-versa). There may be personality difference or the work and trust that was expected on both sides has not been there. It’s common for a buyers rep agreement to be terminated if both parties have consent and most LA buyers agents are fine ending the agreement early.
Absolutely!
To start, your best home interests will professionally handled and represented.
Partnering with a professional Los Angeles buyers agent to find homes is the same as:
- Using an accountant to help you with your taxes
- Going to a doctor to help with your healthcare
- Or using a mechanic to help with your car troubles
If you had the time, or inclination, to learn everything about being a doctor, mechanic or account, you could perform all 3 of the above yourself.
But are you going to really learn it? Do you have the time to devote?
That’s why you simply pick up the phone or drive to a professional with a proven track record who can help you.
All the big and small hassles that come when buying a house will be taken care of by your real estate agent.
For example, this will include:
- Searching and findings homes that fit your criteria
- Presenting offers and dealing with negotiations that will arise
This will allow you to put your attention elsewhere but still have the Los Angeles buyers agent on your side to answer questions and help guide you throughout the home buying process.
Should I Use A L.A. Buyer’s Agent?
A definite YES!
Your Los Angeles buyers agent will be your personal real estate specialist who understands your home ownership needs.
Just as the doctor and mechanic understand your needs, the real estate buyers agent knows and understands your real estate needs when looking for a home.
When you find your preferred buyers agent, make sure to keep an open line of communication at all times.
To clarify, this means that if something changes when searching for your new home, make sure to advice them.
Whether you are now looking in another area or require a bigger floor plan, you want to keep your buyers agent up-to-date on all the necessary info so that they can help you find a home in Los Angeles that fits your needs.
Remember that they can potentially see new homes before you even know they are out there.
Why A Buyer Representation Agreement Makes (Great!) Sense
When you sign a buyers rep agreement, remember the key highlight is that you have one of the best real estate agents in Los Angeles working for you. As stated above, your home searching and negotiations will be handled by the real estate agent. When signing a buyers rep with your realtor, remember that this will:
- Save you time from have to search for homes on your own
- You will know that the homes you show up to view, fit your criteria exactly
- A professional LA realtor will be handling and negotiating for you throughout the entire home buying process
- Most importantly, there will always be a professional by your side to help you with any questions, concerns or bumps along the road
When you find the correct real estate agent to represent you as a buyers rep, the agency agreement is usually free of charge!
And who doesn’t like free?
When you sign a buyers agency agreement, you are agreeing to “hire” the realtor you found.
So by law, that Los Angeles buyers agent must represent your best interest to the best of their ability.
It’s like having your own personal home-buying assistant, but for free!
You may not be aware that most states and provinces require that the sellers agent pay the buyers fee.
This is why it is typically free when you sign a buyers rep.
When you are looking to buy homes near you, it makes sense to have a professional helping you.
Have Questions About The Buyers Rep Agreement?
Buyers should be in the know when it comes to a buyers rep agreement.
If you find yourself with any additional questions, contact Los Angeles buyers agent Craig Thomas using the form below.
Find more interesting articles about Los Angeles real estate services.
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