You’ve been pre-approved, saved up your down-payment and decided to purchase a home, great! You’ve chosen an agent (hopefully The Costabile Group) and a Buyer Representation Agreement needs to be signed.
Wait, what? What is a Buyer Representation Agreement?
What is a BRA?
It’s simple really, but most people get scared and tense up when signing a document filled with a whole bunch of legal jargon that most don’t understand – its normal! That’s why we are here to help break it down. A BRA is a form that lays out on paper who is working for whom. When you sign a “buyer rep” with us, it’s clearly stated that we have your best interests in mind, we are working for you and only you during the transaction.
Do I have to sign a BRA?
The short answer is yes, however, you do not have to sign one before looking at properties. That being said, it is required before purchasing that new dream home. Now let’s discuss some of the benefits of signing one with us before searching for that dream home.
What is included in the BRA?
Some points listed within the BRA include setting out the type of property you are looking for (ie residential, commercial, etc), the geographic location, the services provided and the duration of the contract. But let’s lay out a few key points about the “buyer rep” aside from the aforementioned:
Representation or Multiple Representation
There are two types of representation that are laid out on the form that define the relationship that we have with you.
Single Representation: As a client, we have a responsibility to follow your instructions, protect your confidential information and promote and protect your best interests. To make the most of this relationship, it’s important to identify your needs and expectations in advance. Discuss what services you are looking for and determine whether our team is the right match for you. To avoid misunderstandings later on, don’t make any assumptions and be sure to list all details in writing. Remember our team has your best interests top of mind.
Multiple Representation: What if your looking at your new dream home that our team has listed – is this ok? The answer is yes, this is called multiple representation. As a team, we absolutely can keep both buyers & sellers best interests at heart. However, our team cannot provide opinions on motivations for each party involved or what you should offer/accept; we can offer you comparable properties, facts, figures and information that will help you make the best decision possible.
If you have any questions about the different types of client/customer relationships please don’t hesitate to ask one of our team members!
Do I pay a commission to my agent when I’m looking for my dream home? Unfortunately, some agents do charge a “finders fee”, however we do not! We always mark this section as “MLS agreed commission” meaning we only get paid what is being offered by the sellers. Buyer beware; some agents will mask their “finders fee” in this section by having a pre-determined commission percentage, therefore if that percentage isn’t what the sellers are offering on that particular home, then you as the buyer will have to pay the extra amount. The Costabile Group never signs you to a set commission when looking for a property so why not get free representation when looking for that dream home? It only benefits you in the long run!
Holdover Clause and Holdover Period
In the case of buyers, the holdover clause applies to properties that you were introduced to while you were under an agreement. Let’s say you signed a BRA to work with The Costabile Group and were shown or introduced to a number of homes, but you didn’t enter into a deal on a property before the agreement expired. You could then choose to work with a different brokerage, however if you decide to buy one of those properties during the holdover period (generally 60 to 90 days), you could also owe commission to the original brokerage. The determining factor is when you were first introduced to or shown the property.1
Whether or not you choose to sign a BRA before looking for your dream home, The Costabile Group will always work in your best interest. Contact one of our agents today to see what we can do for you.