Is it Wise to Sign with a REALTOR When Buying?

Written By: Nate Moquin  |  Posted: Friday, April 24th, 2015

            In my real estate experience, the most misunderstood aspect of the process is the Buyer Agency agreement.  The assumption among buyers (and to my amazement, most real estate agents) is that the Buyer Agency agreement was created to benefit real estate agents.  It wasn't.  I suppose it stands to reason agents are under this impression.  Having it in place reduces the likelihood that after showing 20 houses for free, another agent will step in and show the buyer 1 house, write the offer and collect the commission.  But the Buyer Agency agreement was not developed for the agent's benefit; it was developed to protect the buyer.

   The Buyer Agency agreement came about because until the 1990's both real estate agents in any real estate transaction represented the seller.  As a buyer, neither agent was required to act in the buyer's best interest.  This was silly and unfair.  To rectify this, the Buyer Agency agreement was developed as a way for buyers to have representation in the transaction and to have a professional negotiate on their behalf.  It is important to note that even today, without this agreement, both agents are still required to operate under the old rules in which they both represent the seller!

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