Real Estate News: Buyer Agency Agreements
by Doreen Gagne
February 2024
What is a Buyer Agency Agreement?
- A written agreement between a real estate broker/agent and home buyer(s)
- Specifies period of time, agent duties, type of properties, exclusivity, and how agent receives compensation.
- Ensures transparency and accountability.
- In Virginia, required by law once a realtor has any substantive conversation about a specific property.
What are the benefits?
The most important benefit this agreement offers is the assurance that your agent will put YOUR interests first and represent you throughout the entire transaction. Though buyers are not obligated to work with a buyer’s agent, most will benefit from the contract expertise, negotiation skills (ie: home inspection and appraisal contingencies), market knowledge, and connections that a professional realtor provides. The Buyer Agent Agreement also provides exclusivity. Agents must adhere to a code of ethics and are not permitted to interfere with other agents’ clients, so most professional agents will not want to work with a buyer who does not agree to sign a Buyer’s Agreement.
Who represents sellers?
Here in Northern Virginia, the majority of sellers hire a real estate agent to list their property. Keep in mind that the seller’s agent represents the seller and will have THEIR best interests throughout the transaction. So, it’s beneficial to a buyer to have their own representative to protect their interest throughout the transaction.
How do agents get paid?
Usually, the listing brokerage offers a co-op fee to the buyer brokerage for bringing qualified buyers and for performing the requisite professional duties to get the transaction to closing: managing contingencies, tracking deadlines, negotiating on behalf of their clients, and communicating with all pertinent parties to the transaction. Fees are disbursed at settlement. Co-op fees have always been negotiable here in Virginia.
In today’s challenging housing market, having a trusted professional to represent you puts you at a clear advantage!
If you have questions or would like to talk about buying or selling a home please reach out to the FOCUS on NoVA team.
