{"id":2515,"date":"2019-03-11T08:21:06","date_gmt":"2019-03-11T12:21:06","guid":{"rendered":"https:\/\/falconexpenses.com\/blog\/?p=2515"},"modified":"2022-02-01T13:16:03","modified_gmt":"2022-02-01T18:16:03","slug":"tips-for-high-integrity-buyer-representation-agreement","status":"publish","type":"post","link":"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/","title":{"rendered":"5 Tips for a High Integrity Buyer Representation Agreement"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dd12e508ef8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dd12e508ef8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#Five_important_tips_for_a_good_buyer_representation_agreement_that_maximizes_value_for_the_home_buyer_and_buyer_agent\" >Five important tips for a good buyer representation agreement that maximizes value for the home buyer and buyer agent.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#What_is_a_buyers_representation_agreement\" >What is a buyers representation agreement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#Why_do_buying_agents_and_buyers_need_a_BRA\" >Why do buying agents and buyers need a BRA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#1_Specify_a_Duration_of_No_More_Than_6_Months\" >1. Specify a Duration of No More Than 6 Months<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#2_Specify_a_Reasonable_Geographic_Area\" >2. Specify a Reasonable Geographic Area<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#3_Clearly_List_the_Commission_Rate\" >3. Clearly List the Commission Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#4_Specify_a_Price_Range\" >4. Specify a Price Range<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#5_Holdover_Clause\" >5. Holdover Clause<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#Final_Notes\" >Final Notes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/falconexpenses.com\/blog\/tips-for-high-integrity-buyer-representation-agreement\/#About_Falcon_Expenses\" >About Falcon Expenses<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<h2 class=\"wp-block-heading\" id=\"five-important-tips-for-a-good-buyer-representation-agreement-that-maximizes-value-for-the-home-buyer-and-buyer-agent\"><span class=\"ez-toc-section\" id=\"Five_important_tips_for_a_good_buyer_representation_agreement_that_maximizes_value_for_the_home_buyer_and_buyer_agent\"><\/span>Five important tips for a good buyer representation agreement that maximizes value for the home buyer and buyer agent.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image alignwide\"><img loading=\"lazy\" decoding=\"async\" width=\"425\" height=\"282\" src=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2019\/03\/img_9277.jpg\" alt=\"Buyer Representation Agreement, Falcon Expenses\" class=\"wp-image-2559\" srcset=\"https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2019\/03\/img_9277.jpg 425w, https:\/\/falconexpenses.com\/blog\/wp-content\/uploads\/2019\/03\/img_9277-300x199.jpg 300w\" sizes=\"auto, (max-width: 425px) 100vw, 425px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-a-buyers-representation-agreement\"><span class=\"ez-toc-section\" id=\"What_is_a_buyers_representation_agreement\"><\/span>What is a buyers representation agreement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Buyer Representation Agreement (BRA) is a legal agreement between a buyer real estate agent and a home buyer. Most importantly, it formalizes the working relationship between a home buyer and a real estate agent. Further, it details what the buyer agent expects in return for their services provided to the home buyer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why-do-buying-agents-and-buyers-need-a-bra\"><span class=\"ez-toc-section\" id=\"Why_do_buying_agents_and_buyers_need_a_BRA\"><\/span>Why do buying agents and buyers need a BRA?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The BRA serves many purposes for both parties. Overall, it develops mutual loyalty and clarifies expectations. Further, it helps to avoid misunderstandings. Most importantly, it establishes a dedicated team of buyer agents with the homebuyer in search of the perfect home.<\/p>\n\n\n\n<p>Now let&#8217;s move on to the tips.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1-specify-a-duration-of-no-more-than-6-months\"><span class=\"ez-toc-section\" id=\"1_Specify_a_Duration_of_No_More_Than_6_Months\"><\/span>1. Specify a Duration of No More Than 6 Months<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A BRA can be as short as 90 days, or even 30 days. However, the standard duration is six months. This is a detail in a BRA that must be specified. Specifying this detail allows the real estate agent and home buyer to understand the expected duration of the relationship. Further, <g class=\"gr_ gr_87 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace\" id=\"87\" data-gr-id=\"87\">extend<\/g> the duration of the contract at any time. In addition, a new contract can be signed if the duration of the previous contract is exhausted.<\/p>\n\n\n\n<p>Note, the buyer needs to initial every area on the BRA that lists the expiration date if the agreement is more than six months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2-specify-a-reasonable-geographic-area\"><span class=\"ez-toc-section\" id=\"2_Specify_a_Reasonable_Geographic_Area\"><\/span>2. Specify a Reasonable Geographic Area<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You want to specify a geographic area the buyer agent has proven expertise in and that the buyer is interested in. Don&#8217;t specify an area that is too broad. Also, don&#8217;t specify an area that is too narrow so that the buyer keeps their options open.<\/p>\n\n\n\n<p>Also, this detail of the agreement allows the buyer to work with agents in other areas at the same time. Essentially, it allows the buyer agent to focus on what they do best while empowering the buyer to hone in on the buyer agents with strengths in specific areas.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3-clearly-list-the-commission-rate\"><span class=\"ez-toc-section\" id=\"3_Clearly_List_the_Commission_Rate\"><\/span>3. Clearly List the Commission Rate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Expectations should be aligned and understood. Therefore, it is important that the home buyer understands what is expected of them and that the buyer agent understands what is expected of them. With that said, buyer agents typically work on commission for their services. Industry standards are three to six percent commission of the sale price of the home. Often there is a split with the selling agent. A split results result in a three percent commission versus a six percent commission rate. Also, clearly state where the commission funds come from. For more details on realtor and real estate agent splits and commissions please review the following resources.<\/p>\n\n\n\n<p>This article was published by <g class=\"gr_ gr_4 gr-alert gr_spell gr_inline_cards gr_run_anim ContextualSpelling ins-del multiReplace\" id=\"4\" data-gr-id=\"4\">Investopedia<\/g>. It provides great tips for selecting a buyer agent if you&#8217;re buying a home and selecting a seller agent if you&#8217;re selling a home.<br><a rel=\"noreferrer noopener\" href=\"https:\/\/www.investopedia.com\/articles\/active-trading\/031215\/how-real-estate-agent-and-broker-fees-work.asp\" target=\"_blank\">How Real Estate Agent and Broker Fees Work<\/a><\/p>\n\n\n\n<p>This article was published by Redfin, a real estate brokerage firm.<br><a rel=\"noreferrer noopener\" href=\"https:\/\/www.redfin.com\/home-selling-guide\/commission-fees-explained\" target=\"_blank\">Home Selling Guide Commission Fees Explained<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"4-specify-a-price-range\"><span class=\"ez-toc-section\" id=\"4_Specify_a_Price_Range\"><\/span>4. Specify a Price Range<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Specifying a price range provides the buyer agent and the home buyer a clear range about what houses to shop for. In addition, this allows the real estate agent to perform their job better. This is because the agent has a clear and agreed-upon understanding of what the home buyer is looking for. Further, in the event that the buyer&#8217;s price range changes the buyer representation agreement can be modified. Also, this gives the homebuyer the flexibility to work with more than one buyer agent at the same time by specifying different price ranges in the <g class=\"gr_ gr_7 gr-alert gr_gramm gr_inline_cards gr_run_anim Grammar multiReplace\" id=\"7\" data-gr-id=\"7\">BRA&#8217;s<\/g> with each respective buyer agent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"5-holdover-clause\"><span class=\"ez-toc-section\" id=\"5_Holdover_Clause\"><\/span>5. Holdover Clause<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A holdover clause specifies the time period from when the BRA ends until when the buyer agent is no longer entitled to their commission. What does this mean? This means that even after the buyer representation agreement expires the buyer agent is entitled to their commission. More specifically, the buyer agent gets their commission if a home buyer buys a home that their buyer agent showed them after the expiration of the BRA, but within the duration specified in the holdover clause. This is an important clause that protects the buyer agent from working for free. Most importantly, it establishes a documented understanding of integrity in the relationship between the two parties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final-notes\"><span class=\"ez-toc-section\" id=\"Final_Notes\"><\/span>Final Notes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A buyer&#8217;s representation agreement is signed between a real estate broker and a home buyer. It is not signed between a real estate agent and a home buyer. A real estate broker carries a higher-level license than a real estate agent. Brokers employ real estate agents. To be a real estate broker comes with more responsibility. Therefore, before signing a buyer representation agreement a home buyer should evaluate both the real estate brokerage firm and the real estate agent.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"about-falcon-expenses\"><span class=\"ez-toc-section\" id=\"About_Falcon_Expenses\"><\/span>About Falcon Expenses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><a href=\"https:\/\/falconexpenses.com\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Falcon Expenses<\/strong><\/a> is an expense tracker and mileage tracker app. Self-employed individuals, and realtors, realize great value from Falcon. Auto-track mileage expenses via GPS. Scan and safely store receipts. Log billable hours with an integrated timer. Falcon Expenses offers mileage expense tracking features proven to create value for realtors and the real estate market. <\/p>\n\n\n\n<p>To learn more about these features please check out the following blog post:<br><a href=\"https:\/\/falconexpenses.com\/blog\/mileage-expense-log-requirements\/\">Mileage Expense Log, What is Required and How Falcon Expenses Can Help<\/a><\/p>\n\n\n\n<p>After capturing expenses quickly organize expenses by time period, project or client into organized reports. Email reports to anyone in PDF or spreadsheet formats, all from your phone. Use for reimbursements, taxes, record-keeping, or invoicing. Falcon Expenses is great for professionals, freelancers, realtors, business travelers, delivery drivers, couriers, lawyers, and more.<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Five important tips for a good buyer representation agreement that maximizes value for the home buyer and buyer agent. What&#46;&#46;&#46;<!-- AddThis Advanced Settings generic via filter on wp_trim_excerpt --><!-- AddThis Share Buttons generic via filter on wp_trim_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":2559,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[371,361],"tags":[416,378,394,415,417,429,372,379,28,418],"class_list":["post-2515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","category-tips","tag-bra","tag-broker","tag-buyer-representation-agreement","tag-buying-agent","tag-home-sales","tag-homebuyer","tag-real-estate","tag-real-estate-broker","tag-realtor","tag-selling-a-home"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/2515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/comments?post=2515"}],"version-history":[{"count":0,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/posts\/2515\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media\/2559"}],"wp:attachment":[{"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/media?parent=2515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/categories?post=2515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/falconexpenses.com\/blog\/wp-json\/wp\/v2\/tags?post=2515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}