Buyer Broker Contracts on Real Estate

Buyer Broker Contractss are comparatively new on the real estate scene. Not like traditional agents who sign a listing agreement with the seller, the buyer’s agent signs an agreement with the buyer. Some agents call this “listing the buyer.”

The real estate industry opposes the idea of buyer agency at first, but buyer’s agents are gaining widespread acceptance as consumers claim more representation and protection. Experienced buyer’s agents watch out for the best interests of their clients and yet know how to assist with other agents, making the real estate deal a win-win situation.

Real estate offices have traditionally paying attention on obtaining and promoting listings because listings attract buyers. Brokerages have always had a financial incentive to bring in their own buyers. When the office represents both buyer and seller the office gets the full commission. If an agent from one more cooperating office brings in the buyer then both offices have to share the commission.

However, buyers who work with the listing agent don’t always get the best deal. In an informal 1992 survey of transfer employees conducted by U.S. Sprint, buyers using buyer’s agents paid 91 percent of the list price, while buyers using conventional agents paid 96.5 percent. Buyer agency has been authorized by mainstream consumer advocates for example Ralph Nader, Money Magazine, Kiplinger’s Changing Times and the Consumer Federation of America.