If you are shopping for a home, you are probably know that real estate agents only make money when they sell homes, and it is the sellers of the homes that pay the commissions. As a buyer of a home, you will not have to pay an agent to help you find a home; however, the agent will make a commission if you end up buying a house that he or she showed you. Because of the way this works, the agent you hire may ask you to sign a buyer's broker agreement.
What Is a Buyer's Broker Agreement?
A buyer's broker agreement is commonly used by agents who help buyers find homes; however, there are times agents do not use these. Most agents will ask buyers to sign one, though, as soon as the process of locating a home to buy begins.
This agreement is designed to create a contract between you and your agent, and it states that you must use this agent to help you buy any home.
Why Do Agents Use These?
Most agents use these agreements for protection. If you, the buyer, find a house with the help of the agent and end up buying it, he or she will earn a commission. Without this agreement, you could still hire the agent to help you find a home; however, the agent would not earn a commission if you happened to buy a home without the help of the agent.
Real estate agents often put in a lot of time and effort to help a person find a house. If the agent does this and does not earn any money from it, he or she may consider all of this time wasted.
How Long Does it Last?
If you want to buy a house through a certain agent, the agent is likely to ask you to sign the agreement. When you do, be sure to discuss the time frame with the agent, simply so that you are not tied to the agreement for an amount of time that is longer than what you want. 90 days is a typical amount of time for a buyer's broker agreement, but you can ask for a shorter period of time if you wish.
Buying a house takes time and effort, and the agent you hire will put in a lot of time to help you with this. If you have questions about this or other topics related to buying a house, contact local real estate agent services.
Hi, my name is Jessica Williams. Thanks for stopping by my website. I have moved a number of times and in three cases I have had to sell a house. The first time I sold a house I listed it with a real estate agent. The second time I did it myself. The third time I listed with a realtor. You can probably ascertain from this information that I found listing with an agent the better route. I managed to sell my house by owner that one time, but never again. There is too much involved and too great a risk for errors. There’s a bunch of paperwork and preparation that goes into selling a house, more then I imagined. My goal here is to share my experiences with you. My hope is to make your experience as pleasant as possible.