Having been an Exclusive Buyer Agent for over 8 years, I have used written buyer representation contracts and taken retainer fees with many clients. (Note that I referred to the buyer under contract as a client, not a customer.) When taking retainers was introduced to me in the early 90's (probably as early as 1988)many suggested that the main reason was for retention purposes. That if the client has something invested in you, they are less likely to disappear. Also we were taught that it was a gauge to tell if the person was really serious. Again, if they had money invested... We found that whether a retainer is used or not, loyalty and seriousness can and should be determined in an up-front counseling session. That the retainer should be a business decision. Basically a cash flow model. And in this way I like Mr. Friend's business attitude. A retainer does make just plain good business sense. As to how to do it? Simply tell perspective clients this is what you do. Just make sure that you have a retainer policy in effect that clearly spells out the "how and why". As a consultant to real estate companies looking in this area I found that too often they liked the idea but when trying to implement took a haphazard method. Not only could this get them in trouble from a legal standpoint (charges of discrimination are one possibility), but with no firm policies and supervision found the program failing almost immediately. Mr. Friend has an advantage in that he only answers to himself. But retainers can work in any size firm. You just have to know how to do it. Steele V. Propp The Buyer's Agent Southwest Minneapolis, Minnesota steelep@aol.com

Back to Previous Post Printer Friendly Version | E-mail This Article to a Friend