Leap of Faith, Risks for Both Parties
No, it’s not “Buyer Rep Contract” week on this blog, and this isn’t going to turn into a serial installment.
It’s just that the subject is so seldom discussed, and such a fertile topic.
So here’s the last thought (to go with my earlier posts, “Real Estate Representation Contracts” and “Parachuting and Buyer Rep Contracts“):
Signing a Rep Contract does represent a risk — and a leap of faith — for both parties.
It’s just that the risk comes at different points.
Buyer Risk
For the Buyer, it’s up front: ‘exactly who is this Bozo/Snake oil salesman/[your stereotype here] who I barely know and who wants me to sign an unfamiliar contract tying me to them for the next decade?’
“What if he doesn’t know anything about real estate?”
“Or doesn’t work hard for me?”
“Or I can’t stand him (or her)?”
Realtor Risk
For the Realtor, the risks primarily come later.
That would be after they’ve invested a substantial amount of time scouring the market for the client, showing them properties, and educating them about how the market works.
Normally, the pay-off for that investment of time is a commission check (and ideally, some loyalty and down-the-road referrals).
However, if the client never buys, or buys from another Realtor they just met . . . all of that investment is for naught.
Yes, it’s a commission business, “that’s the way the cookie crumbles” — blah, blah, blah.
But Realtors ultimately just sell one thing: their time.
Wasting it is the surest way to go broke.
