If you've been having trouble getting buyers to commit to your time and resources by signing a contract and getting themselves preapproved for a loan, you might try what one buyer’s agent is doing.

There are just two hurdles in your way – attitude and culture.

Buyers’ agents agree that having the confidence to ask for an agreement is first and foremost, because you have to have the fortitude to walk away from a consumer who won’t commit to you.

But your confidence may be shaken if you don’t know what to tell a buyer. Why should they sign an agreement to be represented by you?

Exclusive buyer’s broker Andrew Show, says, “We have 95 percent success ratio of converting a buyer prospect into a buyer client with a written contract. Ninety-eight percent go to closing. Why wouldn’t anybody want a written contract with the buyer?”

Show explains that he believes it is traditional agents who probably have the most trouble getting buyers under contract, a residual effect from the days of dual agency when agents worked for the seller, and with the buyer. Part of the problem is the complicated language of agency disclosure, especially if an agent lives in a state with designated agency, transactional brokerage or dual agency. This is the cultural challenge - agents operate in an environment where they aren't really agents, making it harder for them to ask for the buyer's loyalty.

He says he is often approached by “trads” asking him how he gets buyers under contract. Show says he first challenges the trad’s attitudes about representing buyers and sellers.

”Would you take a listing verbally?” asks Show. “Then why would you take a buyer’s listing verbally? So the first step is a change of culture. A paradigm shift, and that is that you will decide not to treat buyers differently than sellers. Sellers are owed full fiduciary duties and buyers should be owed them, too. Not divided loyalty, not part-time loyalty, but undivided loyalty.”

To get buyers to sign a buyer’s representation agreement, Show knows that he has to explain to the buyer why it is in his/her best interest to sign.

"When I am in conference with a buyer, I make this comment: 'The seller has a written contract protecting the seller in the sale of their home. The buyer should have the same written protection in the purchase of their home.'"

He points out at least three things that he will do for them, as a licensed agent in the state of Ohio, but that these things are only offered under contract. He tells them that he:

1. Maintains the buyer’s confidentially of motives and price
2. Promises to never have conflicts of interest; that he is accountable to the buyer
3. Will rebate to the buyer any fees or bonuses paid to him or her over and above the fee established in the contract (Editor's note: Rebating commissions to buyers is not legal in Ohio, but fees over and above the commission can be rebated as the commission is determined in the contract between the buyer and buyer's agent. It is also illegal not to disclose to the client when his/her agent is receiving a bonus or fee for selling a particular home. Many agents accept bonuses, particularly from builders, without telling their customers that they have been incentified beyond the normal commission, reports Show.)

"It's a powerful way to get the buyer to realize, what protections do they have if they don't sign?" says Show.

Published: July 9, 2002

Use of this article without permission is a violation of federal copyright laws.