In Real Estate Buyer Contracts Are Going To Be Required

Summary

Buyer contract are coming and going to be required to be use by a real estate agent representing a buyer.

Yes, in real estate, buyer’s contract is going to be required and home buyers beware.

Later this year, real estate agents are going to have to put potential buyers under contact before they show properties.

Buyer and real estate agents have always had the option to use a contract and some agents use them and a number of others like, myself that don’t.

And yes, there have been times, where agents have worked with a potential buyer, and it has not workout.

Buyers have used their services and their time, and agents have not charged them anything.

A number of agents have giving up their time in hope that the buyer sees the benefit of working with them and when they buy the home they will buy it though them.

Well, future buyers, you are not going to get that free time you were getting from a lot of real estate agents. You are now going to have to choose one or do it on your own.

For those real estate agents that work with buyers, it can be both good and bad.

Buyer Contracts Are going to be required

Putting a potential buyer under contract will reduce the amount of time working with buyers that don’t intend to buy or don’t intend to buy from you.

Yes, there are real estate agents that have put a lot of time and effort giving a potential buyer information and guidance and driven a potential buyer around just to have them buy from someone else.

For the real estate agent, it is not a bad idea to put a potential buyer under contract and for the buyer, no more free lunch.

Buyers, you can buy from the agent that represents the seller of a house, but who is really is going to represent you, who really going to negotiate for you and who going to make sure it in the best deal for you.

And sellers, if your agent you hire is now representing the buy, are they working in your best interest.

Real estate agents, are going to be required to use a buyer’s contract when working with a potential buyer.

Sellers, even those real estate agents who did put buyers under a buyer’s contract did so with the intent that the agent represents the seller, would pay them, the buyer agent their commission from the commission the seller was paying them, which the seller had agreed your agent would pay.

So, the buyers they were representing would not have to pay any more monies out of packet to pay them.

In my opinion, the new rule may reduce the number of buyers looking to buy, because the buyer is going to need more money upfront if the seller is not willing to pay a commission to the buyer agent.

And if your listing agent decides to represent the buyer in a transaction, they become a dial agent and the buyer can later claim miss representation for a number of resents, if the listing agent the seller hire doesn’t do everything correct, which can put the seller and the agent in jeopardy.

Selling properties is a lot of work and, in California, a lot of paperwork for the sellers and the agents, both the agent represent the seller’s and the buyer’s.
Steve Olmos
Selling real estate in Southern California since 1980