Workers deserve to be paid for a job well done.
I have heard stories from Colorado buyers agents who have worked with buyers for many months, showing homes on their dime and time, and then never receiving compensation for their work. This can happen unintentionally, a buyer does not realize that the compensation for the buyers’ agent comes at closing. The buyer will understand that the buyer agent has worked endless hours for them and in an effort to relieve some of the work, they have a sister or a friend write up and offer and submit it, cutting the buyer agent out of any payment.
This is one side of protection included in a buyer agency agreement, aka buyer broker agreement. It outlines the buyer’s duties to the buyers’ agent in order for the agent to receive compensation for their work in the end.
On the other hand, let’s say a buyer found a Denver agent they liked, but then found out the agent did not meet all of their specifications for a good agent. They do not have to sign the agreement with the unsatisfactory agent. They are free to interview buyers agents until they find the best fit for them. The buyer agent’s duties and responsibilities are also outlined in the buyer broker agreement.
This is a benefit to both parties to know exactly where the other stands. It also weeds out poor agents and non-serious buyers saving both parties time and money.
Buyer Agency Agreement
A good buyers agent will be able to provide complete buyer representation and fiduciary responsibility to the home buyer. They will also have excellent negotiating skills, access to all for-sale properties, and recommendations to quality local services in financing, inspection, and insurance. It is important for the home buyer to interview agents before signing a buyer broker agreement with them to be confident that they have the best buyer representation.