Realtor.com just had an article on why you need a buyers agent and one of the issues blithely covered is that you the buyer should sign an Exclusive Buyers Agent contract. (see link below)
This is the worst advice anyone can ever give to home buyers as it has caused nightmare situations that the buyer cannot get out of.
- With an exclusive buyer’s agent contract you are stuck with that agent for the term of the contract!
That’s right. if you decide that maybe this agent is not the right one for you, or if they are less then adequate, or you just want a new agent for any reason you are stuck. The word exclusive in the contract means that you will work exclusively with the agent whose contract you signed!
2. If you decide to use another agent to buy your new home you will still owe the old agent whose contract you signed a commission!
This is the most nefarious part of these exclusive buyer’s contracts. If the agent you decided not to use to buy your new home shows up, he can collect the full commission stated in the exclusive buyers contract from you the buyers and he can even sue you in small claims court to collect it from you!
3. An executive buyers contract makes buyers agents lazy, less then diligent and unprofessional!
A good buyers agent does not need you to sign an exclusive contract with you the buyer before he works with you to find you the home of your dreams. His professionalism and his diligence earns for him the right to represent you in your quest to find the home of your dreams. They know that if they flag or fail you can always go to another agent and then they lose all of the time and effort they put into your search. An exclusive buyers contract makes them sloppy and slothful as they know that even if they fail you and you leave to find a better agent, they can still collect their commission.
So as a long time professional buyers agent, I advise you never never never sign an Exclusive Buyers Agent contract. and I do mean NEVER!! The agent that wants you to sign one is not worthy of your business. They dont want to earn it, they want to assure it with the minimum amount of effort possible to themselves.