What should be included in the agreement between the buyer and the broker?
If you are reading this because you are planning to hire an agent, or you are changing a real estate agent and want more flexibility this time, here are some things to consider.
Before you start visiting the home, your broker will ask you to sign a buyer’s broker or first presentation agreement, which is now required in the NAR settlement. But that doesn’t mean you have to accept every term as is. You have the right to request terms that make sense to you.
Many agents are flexible, especially for new customers who want to try the waters first. In a Family Light Survey Many of the top buyer brokers across the country say they offer short-term agreements such as 24-hour contracts, weekend contracts or by-property contracts before finalizing long-term partnerships.
Here are the key parts of the Buyer Broker Agreement and what you can negotiate:
Protocol elements | what does that mean | What can the buyer ask for or negotiate |
Exclusive | Indicates whether you only work with the agent (or its brokerage company) during your term of office. | Start briefly: First request a non-exclusive or short-term version. Once you feel comfortable, you can agree to exclusivity. |
period | The length of the buyer-broker agreement, usually 30-90 days. | Test the waters: Before making a longer commitment, a 24-hour, weekend or 2-week trial is required. |
Terms of Termination | Explain how to end the relationship early and whether any notice or fees are required. | Stay flexible: Negotiate the option of no-finite cancellation within a short period of time (24-48 hours). |
Compensation clauses | Overview of how to pay to your agent, whether it is by you, the seller, or through a shared commission. | Ask in advance: Ask for clear details and ensure your agent is seeking Compensation paid by the seller First. |
You don’t have to lock yourself into a long-term contract until you’re ready. In today’s NAR settlement market, most agents understand that they need to win the trust of their customers first and are happy to start with short-term agreements or limited presentations.
Once you confirm that it is appropriate, you can sign a more traditional 30-day, 60-day or 90-day buyer broker agreement.
If the agent cannot be changed now, steps to take
If your agreement remains valid, or your cancellation option is limited due to fees or other contractual conditions, you can take the following steps:
- in advance: Tell your proxy what doesn’t work. A blurred frustration doesn’t help anyone.
- Set clear expectations: “Please send me a text message to update twice a week” is clearer than “I need better communication”.
- Request different agents within the same brokerage firm: Sometimes there is no chemical reaction at all.
- Revisiting your strategy: Change your price range or area to gain new momentum.
- Wait: If the agreement ends soon, you can almost start over with a completely new perspective.
Option 3 is a great solution for many unsatisfied home buyers. While a buyer’s broker agreement may allow you to keep in touch with the broker during the contract period, you can still change a real estate agent in the same office. If the problem is personality or communication, this can be easily solved.
How to part ways with your agent in the right way
If you review the contract and think that replacement is now feasible and the best move, you will need to take a professional, documented approach. Here are some recommended steps to follow:
- Review your agreement again: Carefully check the Termination Terms and any required notice periods.
- Communicate directly with your agent: Let them know that you have decided to turn in another direction. Keep your tone polite and brief.
- Written confirmation: Most brokerage firms require written notice to terminate formally.
- If necessary, please notify the brokerage company: Since you may have a technically signed agreement with the brokerage firm, make sure the office is aware of your decision.
- Avoid overlap: Do not visit the property or make an offer to a new broker until your termination is confirmed in writing.
Changing an agent can feel awkward, but remember that this is your home search and it’s all in your control.
If you are unsure of the terms of the agreement, you may need to consult a real estate attorney before sending the notice. To learn more, see our post: How to write a buyer agent termination letter.
Find the right real estate agent for your next move
Once you officially terminate your previous agreement, it’s time to find an agent that is more suitable for your needs and communication methods. But what is “more suitable” actually like? Consider these properties:
- Local experience: Choose someone who often works in your target community and understands current price trends.
- Clear and proactive communication: Find an agent who can respond in a timely manner, keep you updated and predict your problems at any time.
- Transparency under the new rules: Before you sign any agreement, your agent should clearly explain how their compensation works and the amount you expect to pay.
- compatibility: Whether you focus on timing, negotiate strength or look for hidden gems, the right agent will listen to your goals and adjust their approach.
If you are not sure where to start, HomeLight’s free proxy matching tool Can help you connect with the best performing real estate agents in your area. We have analyzed over 27 million deals and thousands of reviews to match you with experienced agents to help buyers like you.
To help you start over, check out our posts: Questions you should ask before hiring a buyer agent.
Conclusion: You can change real estate agents as buyers
If your current real estate agent partnership doesn’t help you move forward, take control of it all. Review your agreement, discuss issues, or, if required, make a clean, professional conversion. In some cases, you may find a better match within the same brokerage firm.
Finally, we provide the following insights: HomeLight cooperates with nearly 100 companies 30,000 top real estate agents in the country. If you hire an experienced, full-service real estate agent and start to worry, honest conversations and clear communication can solve poor communication or performance issues in most cases.
If you have not hired an agent and are researching your options before signing a contract, use HomeLight’s Proxy Matching Tool Find the one that works best for you. It is designed to connect you with the best performing agents from day one.
learn morevisit HomeLight Home Buyers Resource Centerwhere you can search for answers to any questions you think of.
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