Exclusive Buyer Representation

3 Replies

Has anyone ever signed an Exclusive Representation Form with an Agent and broker before? 

What are the pros or cons to these? I’m trying to understand why you should or shouldn’t sign these and what benefits they would have for myself as the investor? 

Coming from an agent’s perspective - if you sign an exclusive buyers agreement it gives the agent more motivation to work for you. As harsh as it sounds, a lot of agents will not put in 100% effort for a buyer who isn’t locked in with them since they know there is a good chance that work can be completely wasted.  Signing an agreement solidifies the relationship and you’ll get an agent a lot more committed to providing you with what you need. 

As an agent I haven't asked a client to sign one of these. While it may signal to a buyer that I'm willing to put in the work to make a deal happen, I would rather just make the deal happen. If they decide I'm not their style or they want to work with someone else I rather them just tell me. I've been screwed by not having a client sign one and them use another agent, but it was probably justified, I learned my lesson, and it won't happen to me again. 

If they're working hard for you, you like them, they've shown you property, and you'll use them eventually, I see no problem with signing one. But if you haven't seen them put anything on show yet, I'd hold off.