Browsing home listings, dreaming about life’s next chapter, finally reaching your homeownership goals—these are all the exciting things you look forward to when deciding to buy a house. And while all of that is definitely part of the fun and games, coming face to face with a real-life real estate agent and their buyer’s agent agreement might snap you out of home-buying dreamland for a second.
But don’t worry. When an agent you’re considering working with presents you with a buyer’s agent agreement, it’s not a sign that you’re in over your head. If you understand what’s in the contract, ask the right questions, and work with your agent to negotiate an agreement that works for you both, then you can have confidence you’re on the road to finding your new home.
A buyer’s agent agreement is a contract between a home buyer and a real estate agent that defines how the two agree to work together. And that’s it! While an agent typically is the one who requests a buyer’s agent agreement, it’s meant to set expectations and protect both agent and buyer in case one party doesn’t hold up their end of the deal.
Think about it this way: If you were shopping at a store and a sales associate really took the time to help you find exactly what you were looking for, then they earned the commission for your sale. Well, let’s say after all the sales associate’s hard work, a different one swoops in right at the close, rings you up, and takes the first associate’s commission. Not okay, right? That’s the kind of funny business a buyer’s agent agreement protects a real estate agent from.
Likewise, if the sales associate you’re working with ends up doing an awful job, you’ll want to be able to find a better associate, maybe even a better store. Well, if the right conditions are outlined in a buyer’s agent agreement, that’s exactly what it empowers home buyers to do.
But before you sign anything, you need to make sure the right conditions are outlined—that’s the only way the buyer’s agent agreement will work for you. So how do you know good conditions versus bad ones? Check out our breakdown of what to look for and what it means for you.
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