What’s a Buyer Broker Agreement, And What Should You Know Before Signing One?
What’s the buyer broker agreement? We’ll break down this important document’s components and explain why it’s one document you don’t want to forget to sign.
Gone are the days when a simple handshake could solidify a working agreement between a buyer and their real estate agent. Instead of a handshake, buyer’s agents are presenting homebuyers with a document called a “buyer broker agreement” — and you might be confused as to what exactly it is.
If this is your first time buying a house, the buyer-broker agreement is just another document in a long list of others that require your signature. However, if you purchased a home before the 1990s, you might be wondering why this document is necessary.
Before we discuss the buyer-broker agreement in detail, let’s first clarify what a buyer’s agent does.
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What does a buyer’s agent do?
A buyer’s agent is a real estate professional who’s going to be your new best friend during this exciting and sometimes stressful endeavor. We spoke to Josh McKnight, a top-selling real estate agent in Pennsylvania, and he describes the role of the buyer’s agent:
“A buyer’s agent has a fiduciary responsibility to their client, the buyer, to make sure that they understand the language in the contract and make sure they’re buying a home that fits their needs. They make sure the buyer is choosing all the correct contingencies and that they’re not being taken advantage of.
“They also have a responsibility to make sure that the home is worth what the sellers are asking for, and will work with the buyers to make an offer.”
In short, working with a pro who legally represents you and looks out for your best interests — throughout the entire home purchase process — is a very good thing. It’s certainly possible to buy a home without the representation of a buyer’s agent, but in a competitive market where things change rapidly, you’ll be glad to have a knowledgeable professional on your side.
