buyers agreement

Not sure about all states, here in Pa you do not have to sign an agreement but if the agent is asking you to execute an agreement you may want to to consider if you are working with them to find you properties that they do not represent. Otherwise, what is their incentive to work with you if they have no protection from you going around them directly to the seller of a property they introduced to you???

If the agent is representing the property that you want to make an offer on then it is not necessary to sign an agreement, it would actually cause a conflict of interest on the agent's part (known as a dual agency in PA), agent's broker has to step in to make sure their client's (seller) best interest is being addressed and protected.

If you do sign a buyers agreement, a couple of items to address are; agreement should only be valid for properties that agent directly introduced to you (in case you are working with multiple agents) and it should state that you are free to work with other agents, just not on same properties... there should be a time limit for enforcement of the terms in the agreement, maybe 90 days from time the property is introduced to you. It should be clear that the mere introduction of a property to you by the agent via MLS search criteria to your email automatically, does no fit into the representation because multiple agents could be sending you the same information and could all be entitled to a commission if the agreement is not worded properly.

Bottom line is, agents work on commissions and can reasonably hope to get paid for the efforts provided that they have provided valuable service to the Buyer. A good agent knows this and will do their best to make sure that everyone is protected and they are not waisting their time.

There are many moving parts to an agreement so when in doubt seek professional advice and guidance.

Hope this helps and happy investing,

Kevin

Laura,
No, it’s not a requirement. Buyer agreements are quite common when purchasing a home in the retail world of home buying, so it becomes something that agents get right up front. In the case of the RE agencies I ran, the agent wouldn’t be paid unless they had this agreement signed. However, in the investment world these can be a huge obstacle. If the agent is good, you can agree to sign an agreement with them on a property specific basis. Never sign one that locks you into working with them, and them alone for a period of time. If they insist, there are plenty of fish in the sea so to speak. Remember the goal is to find the right agent not the 1st.
Good luck!