This blog hopefully will help not just clients understand the reasoning for Buyer Rep Agreements, but also agents. It's a tough topic but I'll give it a shot. Alot of folks shy away from the big bad Buyer Rep Agreement due to fear factor that is really not warranted. The Buyer Rep Agreement is for the Buyer and Broker what the Listing Agreement is to the Seller and Broker. There are different forms used based on the need. TAR offers an 8 page form and some brokerages have incorporated just one page forms. Basically the agreement is to allow the Buyer to become a client rather than just a customer and appoint the Broker to act as the client's real estate agent in acquiring a property. This binds the Broker/Agent to the client to uphold their ficuciary obligations and work to meet the client's needs. Alot of buyers are afraid of having to pay compensation when in reality, the compensation normally comes from the sale of the home. It helps to protect both the Buyer and the Broker. Believe it or not, there are some entities out there that unfortunately still practice some unscrupulous acts and shed a bad light on all parties. I will mention a very shortened version of an incident involving a custom home builder who actually approached a buyer about cutting out his agent and he would then cut the price of the home substantially. Please understand this is NOT the norm of most builders and sellers, but an exception and it did happen. The builder in this case asked the buyer if he had a Buyer Rep Agreement and the buyer did not recall. The agent had worked with the buyer for a minimum of 6 months and showed multiple properties to include the aforementioned builder's. However, the buyer had gone out on his own one day and bumped into the seller. Fortunately for the agent, a Buyer Rep Agreement had initially been obtained and the agent did get compensated after mediation between attorneys. But shame on that Builder Seller for planting the dishonest seed. Again, this is an exception to the norm, most builders and sellers welcome the assistance of a real estate Broker and agent. Another example for the benefit of the client, is the Broker/agent in another case worked to protect the client from a wrong choice that would not have been in the best interest of the client...but due to the Broker/Agent's expertiseand his loyalty as the Buyer's representative...the client saved thousands of dollars and bought a property that will not lose value and most likely escalate. There are so many more examples and time is limited, but hopefully you get the jist and will no longer be afraid of "signing" if you're the buyer or "presenting" if you're the agent a Buyer Rep Agreement. It really is meant to be a good thing for all involved!! Remember, both parties sign a listing agreement when selling a house...it is basically the same principle! Real estate is a business but it deals with hopes and dreams!!! So sometimes emotions get in the way of clear thinking. Good luck!!