Three weeks ago I received a call from Sarah. She was still living on the East Coast, her husband was here, and they were looking for a home they could rent in Estrella Mountain Ranch. She asked for additional information, which I sent to her via e-mail.
On Monday I received a follow-up call. Sarah was in town and she and her husband wanted to look at my rental. She also wanted to know if it was available via a lease option. I turned her over to my rental specialist, who sent her the listing sheet and proceeded to set an appointment to show her the home Tuesday afternoon.
Tuesday morning I receive a call from a real estate agent who “has been working with Sarah for several months.” This is the first I’ve heard of the agent. When I mention I’d spoken to his client several times already he told me, “well, I have a buyer broker.”
Jump back to July when I received a call on a listing in Palm Valley from someone up in Washington. I answered all of her questions and sent her information on the home. We spoke a couple of times about the property. And then I received a call from “her agent” to set an appointment. When I told her I’ve been assisting her client this whole time, she said “well, I have a buyer broker.”
So what does that really mean? What does it really mean when a buyer signs a buyer broker agreement?
For starters, they are agreeing to work exclusively with that agent. Any questions they may have need to be funneled through their agent, not the listing agent. Because if they do go through the listing agent for information, and the listing agent has evidence of procuring cause, the buyer will be paying their agents’ commission out of their own pocket.
Some will argue this is as it should be. Depending on the day and the presentation, I may or may not disagree. But as an agent holding the buyer broker, all you are guaranteed is that you’ll receive a commission if a transaction closes. Whether it’s paid by the seller via the listing agent or directly by the buyer is another story.[tags]AAR purchase contract, buyer broker agreements, Phoenix real estate[/tags]