Our company NEVER lists homes or represents sellers. We only work for buyers and stay 100% loyal to the buyer throughout the transaction. Some things in this industry bother me.
One thing that bothers me A LOT, is to hear that a consumer has been given a legal document that says one thing in writing, but the person with the training and the license to present that document for a legally binding signature says something completely different when explaining the document to the consumer. (Read the first half of this blog entry for some additional background as to why I'm using compensation as the example below.)
It was that issue (incorrect explanation of documents placed before buyers or sellers) that ultimately caused me to pen the following in the middle of a heated debate between two other agents:
My buyer-clients are ultimately responsible for my fee. We agree to it up-front before any representation starts.
To be clear, we will credit toward what the buyer owes: anything that comes to us via a seller, builder, listing brokerage... well, anyone or anything else.
If compensation from other parties covers the brokerage fee a the buyer and I have agreed to, the buyer owes us nothing.
If it falls short of what we agreed to, the buyer knows (and I know) that the buyer will make us whole at settlement. (Yes, some of our buyer-clients happily pay the difference out of their pocket).
If we get more from a third party than the agreed upon amount in our contract with the buyer, we give it back to the buyer, where it came from. (Since that money ultimately came into the transaction via the buyer's purchase of the home, as has been noted by others.)
This agreement allows me to give the same superior level of representation on any home the buyer wants to buy, regardless of the compensation being offered by the seller or the company representing the seller. (And even if there is NO compensation being offered.)
The standard Utah Exclusive Buyer Brokerage Agreement contains this language, so I'm certain that a large majority of buyers and traditional brokerages enter into this agreement. Strangely, however, I may be one of a very small number of agents who explain this document to buyers as it is written. I say this because I know many agents tell buyers that their services are free and/or that they get paid by the seller or listing brokerage. This is technically false according to the legal document they place in front of the buyer to sign.
In addition to knowing the Purchase Contract thoroughly, agents should know, intimately, all of the contracts they place before buyers (and sellers). They should explain to the consumer EXACTLY what the contract says, not some dumbed-down version that is crafted merely to get the buyer (or seller) to sign.
Our clients WANT to sign our agreement and are happy to pay us what they agreed to pay us when compensation from other sources falls short.
I believe that agents who respect their clients enough to explain exactly what is happening, who do what is best for the CLIENT, and who remain fully loyal to the client at all stages of the transaction (even before a home is identified), ultimately earn loyalty, respect, and goodwill from their clients that most other agents will never have.
If you are planning to buy a home, answer the following questions:
- Do you have excellent credit?
- Do you plan to purchase a $300,000-$800,000 home within 90 days?
- Do you have a good down payment, or are you paying cash for your next home?
Get an agent that respects you enough to clearly explain the documents you are asked to sign and will take the time to address any questions you have!
Get an agent who is truly on YOUR side!
Call us at (801) 969-8989 or contact us today via the link on this page for a free consultation.
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Salt Lake City, UT - Exclusive Buyer Agents (EBA)
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