It may be difficult to believe if it’s not a practice in your area, but some Realtors in the United States actually charge a fee to buyers merely for showing them homes. They make the case that time is money, and showing a buyer homes week after week can consume an enormous amount of time. At the other end of the spectrum are Realtors who will show a buyer homes without even requesting them to sign a Buyer Agency Agreement. Consequently the buyer has no legal representation and the Realtor is exposed to a loss of commission.
Using $100 per hour as a benchmark for the bare minimum that a skilled Realtor’s time is worth, below is an illustration of how that can equate to at least $1,000 worth of lost time.
- Qualifying, prep for initial meeting, incl. selection of homes and appointments (1.5 hrs. = $150)
- Showing six to eight homes (3 hrs. = $300)
- Follow-up and research for next appointment (1 hr. = $100)
- Second showing appointment of six more homes (2 hrs. = $200)
- Follow-up and research for 3rd appointment (1 hr. = $100)
- Third round of showings, 3 homes (1.5 hrs. = $150)
And that’s only considering three rounds of showing appointments. Experienced Realtors know that they can end up showing a buyer homes many, many more times than that.
Missed Opportunities
We have sold a number of homes of late whereby buyers just happened to call from our For Sale Sign, the internet or meander into one of our open houses. In more cases than you can imagine, the buyer commented that the last Realtor that they worked with did not ask them to sign a buyer agreement. They proceeded to sign one with us. The relationship was rewarding for both the buyer (in terms of the professionalism with which they were treated and the service they were provided) and for us in that we were compensated for a job well done.
Is the risk of losing a buyer for not following the law worth it to you?
What options are available that will make you more comfortable using the Buyer Agency Agreement?
Please let us know in the comment section below.
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