The greatest document created for the real estate industry in the last ten years, has to be the Exclusive Buyers Agency contract.
Think about it… agents would never think of marketing and promoting a sellers home without a listing contract but why do so many agents spend a ton of time and money working for a buyer without a buyers agreement?
Why did they create this document but forget to train the real estate professional how to present the value proposition to their buyer to want to sign it prior to buying their next home?
Agents take the time to sit down with a seller and present…
why their company and…
the benefits to selling their home before asking them to enter into a listing contract.
Agents need to take the time to sit with a buyer prior to their home buying search and present to the home buyer…
why their company…
and the benefits of hiring an agent to represent them on their home purchase.
What would it mean to you to have your buyer under contract exclusively with you and your company instead of driving them around and showing them a large number of homes, burning your own gas, buying coffees and lunches and then they call you to say “ we didn’t want to bother you on a Sunday and saw the perfect house at an open house and bought it. We wanted to thank you for everything you did and hope this house plant will look good in your office as a token of our appreciation.”
I know this happens because it has happened to me.
To protect yourself from the “house plant” scenario I encourage you to sit your home buyers down and share with them the benefits they receive from entering into the Exclusive Buyers Agency agreement.
Tell your clients… “just like my sellers hire me to sell their home by authorizing a listing contract, I also get my home buyers to hire me as their exclusive buyer’s agent and authorize this exclusive buyers agency contract.”
The worst thing they can say is “no thank you” and you still can choose to work with them or not, but this is a great qualifying tool for any buyer and should only take less than an hour for a buyers consultation and prevent the 3 days, 20 showings, 1 tank of gas and end up with an office plant as a token gift outcome.
1) The Doctor/Patient Advantage (Client Confidentiality)
Let’s say your client is going from house to house and agent to agent, sharing their personal and financial information with everyone. When they do put in an offer, how does it affect their bargaining power if the Seller’s agent already knows everything about them? It is critical they share this information with only one agent, so it won’t work against them later. Their Buyer Agent is on their side, not the Seller’s side… make sure they understand the importance of this.
2) The Instant Information Advantage (No Communication Delays)
When your client is relying on the internet, newspapers, or magazines as their source for house listings it is important they remember these systems all have built-in delays. These delays can be from a few days to a week before the listing actually makes it to them. How many of the hottest real estate deals or best buys make it that far before they are sold? Very few. Get your home buyer on the inside track with the most current and up to date information.
3) The Insider Advantage (Buyer, Meet Seller)
A great many hot properties are sold exclusively by sleeve or pocket listings, before they are even activated on MLS (Multiple Listing Service). These pocket listings are often sold well before the public even knows about them. In these cases, the Sellers who wanted to sell and Buyers who wanted to buy were introduced and made their transaction through the Direct Client program. Emphasize to your home buyer the importance of them having access to these types of home listings.
4) The Inbox Advantage (Convenient Auto Email Updates)
As an agent, I have the technology to be notified of a new listing on the MLS system by the minute, and then quickly notify my Direct Clients. I can use my privileged access to this listing data to get you in to see your perfect home before most of the other potential Buyers even know about it. Be sure to show your buyers the power of this.
5) The Invisible Listing Advantage (Find the properties that aren’t for sale)
As part of a large sales force, I am constantly in contact with other agents. They may have Potential Sellers: home owners who would sell if they had a Buyer. We call this the “water cooler transaction”. I mention I have someone looking for a special kind of property, and the other agent has a property that fits like a glove, but isn’t even on the market! Yet another benefit for your buyer to enter into an Exclusive Buyers Agency Agreement.
6) The Active Agent Advantage (Buyer Agents are prospectors)
Personally, I won’t just wait for listings in the Direct or VIP program: I’ll go out and find my buyers perfect home! I will prospect by telephone, direct mail or pound the pavement door-to-door, investing as much time as it takes to find their ideal property. Why wait weeks or months until it is listed for sale? Show them you are serious, if they will show you they’re serious to work with you.
7) The Accountability Advantage (Contractual Obligations – For Me!)
Direct Clients hire me under contract, just like Sellers hire me under a listing contract. This ensures my Direct Buyers receive benefits other prospective Buyers do not. When we enter into this contract, I am required to perform specific duties within a fixed time, or the agreement is null and void.
8) The Easy Exit Advantage (Fire Me Anytime!)
If my buyers are unhappy with my services for any reason, I give them the opportunity to correct the situation. If the problem continues, then I promise them an unconditional release from our contractual agreement with no questions asked. This removes the risk factor from your client.
9) The Guaranteed Communication Advantage (I Promise Not to Disappear)
My home buyers can expect a regular delivery of prospective homes to consider and ongoing communication from me. I’ll keep them up to date on the hottest new listings, so we can beat the rush and get them in to see these properties before other potential Buyers. This way they will see the best buys first! Give your buyers the sense they will be treated preferentially if they agree to sign the Exclusive Buyers Agency Contract.
10) The Transaction Coordination Advantage (I’ll find the property, then help them own it)
There will be a large group of professionals involved in completing your buyers transaction: bankers, insurance agents, inspectors, appraisers, utility workers, and lawyers just to name a few. All these professionals do not have time to contact each other and facilitate your buyers purchase. It’s a huge benefit for your home buyer to have an agent they trust, who will coordinate all these services on their behalf. Sell this benefit then ask them to sign the agreement.
I hope you see the advantages of having your home buyers enter into the Exclusive Buyers Agency agreement with you as well as the benefits the client receives as well.
Try it out and measure the effectiveness of the response you receive.
Strength and courage,
Please pass on this post and feel free to share any other buyer benefits to the agreement.