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Top Five Objections to Buyers Agency Agreements and How to Address Them
In the ever-evolving world of real estate, staying ahead of the game is crucial. As of August 17th, it’s mandatory for Realtors to have a buyer’s agency agreement before showing properties to a buyer. The 21 Mike Team at Century 21 HomeStar, led by Mike Ferrante, has been proactive in using these agreements for years. However, with this new national mandate, it’s essential to address potential objections from buyers. Tony Geraci, Broker/Owner of Century 21 HomeStar, brings his extensive experience to the table to help navigate these conversations.
1. “I Just Met You, I Don’t Want to Sign Anything”
One of the most common objections agents anticipate is from buyers who are hesitant to sign a document right after meeting their agent. The key here is transparency and reassurance.
Response: Explain that it’s a new rule that agents must follow to ensure full transparency. For instance, in Ohio, agents must use a Consumer Guide to Agency Relationships, which has been standard for years. Highlight that this document doesn’t obligate them to anything; it just explains how agents work.
Tip: Emphasize Clause Number Six, which is the cancellation clause in many agreements. Explain that they can cancel the agreement if they don’t feel comfortable after the first showing. This reassures the buyer and makes them feel less pressured.
2. “I’ve Never Had to Sign Anything Like This Before”
Buyers who have previously purchased homes without signing an agreement might be puzzled by this new requirement.
Response: Clarify that the real estate industry is evolving to ensure transparency and professionalism. Mention that just as listing agreements are standard for sellers, buyer agreements are now standard for buyers. This change is meant to protect their interests and make the process more straightforward.
3. “If I Don’t Sign This, You Won’t Show Me the Property?”
Buyers might feel cornered by the necessity to sign an agreement before viewing a property.
Response: Yes, explain that this is a requirement to ensure transparency and to outline how the agent is compensated. This is similar to signing a Consumer Guide to Agency Relationships, which is mandatory in many states before showing properties.
Tip: Reiterate that this agreement protects both parties and ensures that the buyer fully understands how the agent gets paid and what services they are providing.
4. “Does This Mean I Have to Pay You?”
The fear of unexpected costs can make buyers hesitant.
Response: Explain that the agreement details how the agent will be compensated, which could be through the seller, the buyer, or a combination of both. Transparency in these matters helps build trust. Mention that the terms can vary, and it’s all negotiable. Ensure that they understand this agreement is for their protection as well as the agent’s.
5. “I’ll Just Call the Listing Agent Directly”
Some buyers might think they can bypass this by dealing directly with listing agents.
Response: Inform them that listing agents also require agreements to be signed. Plus, by doing so, they may not receive the representation they need. As a buyer’s agent, your goal is to represent their best interests, negotiate the best terms, and provide them with dedicated service, which a listing agent may not offer.
Advantages of Having a Buyer’s Agent
Most buyers still prefer to have representation. A dedicated buyer’s agent can streamline the home-buying process, efficiently schedule showings, and negotiate the best terms on the buyer’s behalf. Not having a buyer’s agent means dealing with multiple listing agents, which can be inefficient and time-consuming.
Final Thoughts
The introduction of mandatory buyers agency agreements is a positive step towards more transparency and professionalism in real estate. Agents who embrace these changes and effectively communicate their benefits will not only protect their interests but also provide better service to their clients.
Tony Geraci notes, “Buyers will start shopping agents before they see houses, just like sellers shop for listing agents. This is an opportunity for agents to showcase their value and expertise. The best agents will thrive in this new environment, providing top-notch service and representing their clients’ best interests.”
By addressing these objections with confidence and clarity, real estate agents can turn potential concerns into opportunities for building trust and securing loyal clients.
For more insights and updates on the Cleveland real estate market, subscribe to our YouTube channel and follow us on all our social media channels. If you have any questions or want to schedule an appointment, visit 21Mike.com.
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