Why Won’t Buyers Sign Buyer Agent Contracts?
Updated: Nov 13, 2019
Buyers have the right to be represented in a real estate transaction, just like Sellers. So, why is it so hard for real estate agents to explain this to Buyers? And, once explained, why is it so hard for Buyers to understand? If you’re new to real estate, or, even a seasoned veteran, you may run into Buyers that are not ready to sign a contract for your services, a Buyer Agent Agreement.
On Private Real Estate Facebook Groups this is a common concern especially when an agent posts about getting burned by a Buyer. As soon as a buyer goes “rogue” the posts about Buyers signing a Buyer contract blow up the feed. It goes something like this:
“I have been working with Mary for a year and then last week I found out that she bought a house with another agent.”
The most common response, “You should have had a Buyer Agent contract.” Other responses, “I won’t take out any Buyer that won’t sign.” Okay, so there it is. But, is it right? Is this truly why Mary bought a house with another agent? Is it because she didn’t sign a contract? Maybe. Let’s break it down:
1. You meet Mary at the office, you explain the Buyer Agency Contract. She wants to “hold off” and just see a few houses before she decides.
2. The “few houses” turn into about 4 per month, always on a Saturday morning.
3. You end up being her friend, you give her some real estate advice. You bring treats for Charlie, her rescue Chihuahua.
4. Mary starts asking you about offers, “what to offer, where to start?” You provide several strategies, after all, she’s your buyer now, right?
Where did you go wrong? Right at the point where you crossed the line from treating Mary as an “unrepresented buyer” to providing “client level services.” In other words, it’s on you. Yes, the Facebook feedback is right, you should have had it signed. Why isn’t this as easy as it sounds?
The reason most real estate agents struggle with this is because they don’t have an authentic conversation. Does the Buyer need to be represented? Should the Buyer be represented? And, most importantly, do you want to represent this Buyer? If you are consistently struggling with Buyers who won’t sign, then your “script” is not working. The tired, salesy approach isn’t working with today’s sophisticated Buyer.
If you want to start getting 100% of your Buyers to sign contracts, then check out my personal one-on-one coaching program. No long term contracts. Hop onto coaching for a month and start getting those Buyer Contracts signed.