Checking The Pulse Of The Kansas City Real Estate Market

Nearly 1/3 of the home buyers who contact us initially indicate they aren’t interested in signing a buyer’s agency agreement. Most of these buyers didn’t understand that without a signed buyer’s agency agreement, NO agent can represent that buyer’s best interests. That’s how real estate agency law works in Kansas and how most brokerages handle it in Missouri too.  Buyers should expect that the listing agent on a home is representing the home seller’s best interests during the marketing phase and the resulting real estate transaction. But if a buyer hasn’t signed a buyer’s agency agreement with an agent, the agent who is assisting the buyer is acting NEUTRALLY (known as transaction brokerage). This means the buyer is sitting the fence when it comes to being represented in their home search.

By not signing to have a buyer’s agent exclusively represent you, what you’re getting is an agent opening the door of the homes for you and generally making a little small talk and staying out-of-the-way. Why is that? Because if that agent advises you on the home they are breaking the law and putting their license at risk. There’s no reason for a buyer to put themselves in a situation where a seller has a listing agent representing them, while the real estate agent who is assisting the buyer is acting NEUTRAL. It just doesn’t make sense. Once a buyer’s agency agreement is signed, the real estate agent can now advise the buyer on the home, provide pricing opinions, discuss why this home is a better or worse option than other area homes, etc.

For those 1/3 of buyers who are reluctant to initially sign a buyer’s agency agreement, we are willing to go out and show homes on an initial basis, get to know each other, make sure we’re a good fit and let the buyer see how proactive we are. We just can’t advise our buyer’s during this initial phase, if a buyer’s agency agreement hasn’t been signed.  Once it’s time to schedule showings a second time, a buyer’s agency agreement can be signed at that time. Most buyers are surprised at the level of service they get from an agent when the commitment level between buyer and buyer’s agent is a two-way street.  A buyer’s agent can put in 10, 20, 30, 40+ hours helping just one buyer, so commitment can be a difference maker in helping a buyer achieve their real estate goals.   

Ultimately, 89% of home buyers use a real estate agent to purchase a home and the beauty of the buyer’s agency agreement is that the length of the agreement can be whatever the agent and the buyer decide is reasonable. So talk with us about your comfort level because we want to make the situation a win-win for all involved.

Posted by Jason Brown