How To Get Your Buyer Representation Agreements Signed

(Caveat: as this post and others from Brokerbuzz may discuss practices that touch on contracts and local regulations, please note any  guidance on tactics, strategies, etc. is not to be construed as giving legal advice; and as you incorporate any of the tactics or strategies into your practice, please ensure they are in line with your local regulations and guidelines. Check with your employing broker or legal counsel as needed.)

It’s not easy converting buyers. Typically there’s a long lead time to nurture and build the relationship, with many little moments where you can either further solidify the relationship or lose it altogether. This means that converting buyers isn’t a moment but rather an active process.

Ultimately the key is to put yourself in position as the real estate professional they’re choosing to work with when they are ready for their home purchase, and one of the most critical points in this process is getting the buyer representation agreement signed. 

As many of you may have already learned, getting the buyer representation agreement executed is a sensitive area for many buyers, as oftentimes they’re not fully aware of what they may be agreeing to and that gives them some trepidation, and they’re intimidated by legal documents of that nature in general. If not handled correctly when presenting and asking for their commitment, the agent can not only fail at getting the execution but sometimes even lose the relationship altogether. 

Ultimately, at these conversion moments, one can only ask in commensurate with the value that has been established in the prospect’s eyes. Or put more simply, they’re not going to sign with you if they don’t see the value or trust you enough. 

With that in mind, here’s a few tips to facilitate and reduce friction points the next time you plan to present a buyer representation agreement: 

Give Them a Reason

Be the agent that has done the work to earn their business. There’s too many slack agents that aren’t serious enough about the consumer responsibility they shoulder. Don’t be that agent. Be a true professional and put in the effort to know your stuff. Be prepared, Be knowledgeable. Make sure you have your values in place and you’re ready to put your clients’ needs first. Be able to provide the right insights and help your clients to make the best key decisions for themselves.

Give them an upside. What is the benefit to the consumer for signing a buyer representation agreement? There’s a reason your local commission promulgated these documents, and much of it is for the awareness and protection of the buyer. Learn how to communicate the value points so that asking for their execution doesn’t feel like a one-way street for your clients or yourself. For example, my state contract stipulates that I can only step into a fiduciary representation with my buyers with a signed buyer representation agreement. Once the agreement is in place, then I’m able to strategize, negotiate and help them win the best deal and terms. Essentially I move into a “coach” position trying to win, versus without the agreement I’m like a referee that ensures the transaction goes off properly but I’m precluded from directly promoting the buyer’s best interest.. I’m able to communicate these points and highlight the section in the agreement to show prospective buyer clients where the document directly benefits them. 

Make It Easy to Say Yes

Think about timing. There is a right time and place to present the buyer agency agreement - done too early and you’ve intimidated and potentially scared off a prospect. Their ears are not yet ready to take in the value provided by the document, or fully trust the information versus the unknowns of what they may be agreeing to. The key is to build the relationship, build trust, and build the connection to get to the right moment to present.

Give them an opt-out. This is a personal choice for real estate professionals, and also something you should be checking with your brokerage policies, but when it comes to putting an opt-out in my buyer representation agreements, essentially I’m not giving away anything that isn’t already there. Let me explain: even with a signed agreement that locks in the representation for six months or whatever time frame, if the buyer doesn’t want to work with the agent, they won’t. They’ll just ghost them. Regardless of what the document says. 

Ultimately this means that the relationship is king and having success with getting the buyer to execute the representation agreement is an extension of the health of that relationship. How does this relate to the opt-out? First, it makes it much easier and less intimidating for the buyer to agree to signing the document. I will literally show them the language and steps to opt-out if they’re not happy working with me.  It also allows me to emphasize this means that it’s my responsibility to perform and do a great job for them, which frames the relationship the right way and further builds trust. And lastly, should the agent want to no longer work with a buyer, or a buyer’s circumstances have changed, or they’re not communicative - then it’s much cleaner for the agent to unilaterally be able to end the agreement terms versus having contracts just hanging out there in the ether. 

Think about how and when  to present. With new buyer relationships, we may have initially connected when meeting to look at a home. At that point the relationship is mostly transactional - they want to look at a home and I’m there to facilitate - but my goal in the meeting is to make a great impression, make a connection, and hopefully come away with the next appointment or contact touch point. Oftentimes we’ll make plans then for them to see more homes, or I’ll follow up during the week and try to get the next showings lined up. 

In preparation for the next showings, I’ll prep, fill out and print the buyer representation agreement. Then, the next time we’re out on those showings, I’ll usually wait until the end of the tour to present the agreement. Hopefully we’ve had a great day, furthered the connection, and if there isn’t anything to offer on (which necessitates a different discussion about next steps and buyer representation agreement) I’ll plan to present the agreement and jump into my talking points, which are essentially asking them if they feel I’m doing a good job for them so far, and with affirmative response, let them know if they’re comfortable working with me moving forward, it would be a good to get a representation agreement in place between us. The agreement is not a one way street and offers them protections and upsides (which I highlighted and show them on the printed copy, and that they are welcome to take the agreement home with them, review it and let me know if there are any questions or feedback. It’s not smoke and mirrors and I want them to not feel pressured as we are at this juncture. 

Make sure you keep the business when earned

Make sure you perform, execute and live up to the expectations and commitments that come with representation. In short, be the agent you wish you had working for you, if you weren’t in real estate. Follow this as a northstar and you’ll likely stay on the good end of things, keep relationships, and build a healthy foundation to your business. 

In closing, converting buyers isn’t easy. And getting your representation agreement - one of the key factors in your ability to win business - can be an obstacle with significant downside if not handled correctly. Make sure you have a plan, you’re focused on execution, and hopefully the tips in this post can help reduce some of the friction points.\