What's the Catch? Investors and the Importance of Buyer Agency Agreements -

Yesterday, I was referred to an investor by an agent in my office who doesn't want to work in the city. She knew I have experience with investors. My question is this: investors coming from a class called Real Estate Riches do not want to sign a buyer agency agreement. Why is that? They just want the agent to submit their offer on a form given to them through this class.

What does a Buyer's Agency Agreement do for the relationship between a buyer and a broker?

1. First and most importantly, this is an agreement that the buyer chooses to work with a broker.

2. It names a period of time that the buyer will work with the agent.

3. It defines the admin. fee and the commission a broker will be paid.

My response is: I can show an investor any property out there. If I show it and cause the ball to start rolling on a purchase, I want to be paid. I can't without this agreement. So, why not sign it?

Any thoughts???