Buyer representation agreements aren’t new, but many buyers’ agents just don’t use them.
“We see more buyers in our area calling us directly as the list agent in a property,” said a sales associate with an independent brokerage in Tampa, Florida. “We are allowed to double-side [transaction brokerage]. Buyers’ attitudes appear to be that the list agent knows the most about the property. [Thus,] we have not pursued [buyer] agreements.”
Asked in the Q1 2023 RealTrends AgentPulse survey if they’re using buyer agreements, a little more than 50% said that they don’t use them. Many citing that they just don’t see the need. “We don’t use this form. Gain your clients’ confidence, educate them and stay close,” said a Berkshire Hathaway HomeServices agent in the Northeast.
Others use them, but don’t implement them until an offer is presented. “We do not ask for a [buyer representation agreement] until we are ready to present an offer, at which time we do have the agreement signed,” said a sales associate in Georgia.
Today’s agents are instead dealing with the challenges of a slower market and spending their time reaching out to their sphere and past clients and customers. Most say they are texting, calling and visiting past clients and customers and building relationships with referral sources to keep active in today’s market.
RealTrends AgentPulse requests quarterly surveys from some 19,000+ real estate agents around the nation on market trends, opportunities and challenges. Of the 148 completed surveys, 15.4% were from the Northeast, 39% were from the Southeast, 21% from the Southwest, 19% from the Midwest, and 5% from the Northwest.
Educating buyers and sellers on the current market and building relationships are key today. Real estate professionals are much more optimistic about Q1 2023 compared to Q4 2022. Some 36% (compared to 61% in Q4 2022) of agents surveyed expect home sales to be down more than 5%.
And, 41% (compared to 55% in Q4 2022) expect home prices to drop more than 5% for the first quarter. Agents are much more optimistic about the market than the brokers we surveyed for the Q1 2023 RealTrends BrokerPulse. 46% of respondents were optimistic about the next three months, while 36% were neutral and only 18% were pessimistic.
Interest rates are still the No. 1 challenge
When asked what their biggest challenges are, some 31% said interest rates and inflation are at the top of their list, this is down from 46% last quarter. Next was low inventory, which 28% of respondents selected as a top challenge, up from 19% last quarter.
While last quarter ‘reluctant buyers and sellers’ rounded out the top three challenges, this quarter, agents are more concerned with ‘getting listings.’ Other challenges include mindset and business planning.
Today’s market requires agents to learn new techniques, consistently prospect and find innovative ways to get buyers off the fence and sellers to list.
RealTrends AgentPulse is a forward-looking survey of real estate agents and team leaders.
If you have questions about AgentPulse or want to be added to the list, email RealTrends Editorial Director Tracey Velt at tracey@hwmedia.com.
