Buyer’s Agreement

WHAT DO I NEED TO KNOW ABOUT THE EXCLUSIVE BUYERS’ AGREEMENT?

In 2024, the State of Ohio enacted a law that requires buyers and real estate agents and their brokers to enter into an agreement that spells out the terms of what is expected from each party. This document must be signed by both parties in order for the licensed agent to show homes, negotiate on the buyer’s behalf, write offers and collect a commission through their broker once the transaction has been completed. This is a new way to conduct business in that the buyer now signs a document spelling out those terms. Requiring this document to be signed is a change in the way we do business. It certainly has caused many eyebrows to be raised by both buyers and the professionals in the industry as well. This document should help answer most of the questions we have seen and heard since it has been required.

The Home Connections Group values transparency and demonstrates this through this guide and taking time to answer questions. Our agents will always put in writing our intentions and welcome your questions.

THERE IS NO EXCEPTION TO THIS LAW. Any licensed agent in the State of Ohio agreeing to show you a home without a signed agreement is in violation of the law and risks losing their license. OUR AGENTS WILL NOT VIOLATE STATE LAW! UNDER NO CIRCUMSTANCES do we want you to enter into any agreement without understanding what it means. Our goal with this guide and especially these two pages and PDF is to help better inform you, calm your fears, answer your questions. Bottom line is if you aren’t comfortable signing an agreement with the Home Connections Group, we haven’t done our job.

It is important to point out if our agents do not perform, we do not get paid. We could invest hundreds of hours into your transaction and if we never make it to the closing table never see a dime, that’s the risk we take for YOU. On the flip side, when we are successful, like any job that is completed we deserve to be paid. Commissions are not paid hourly but a % negotiated as part of the contract and vast majority of the time paid for by the seller. This agreement will have a 3% percent fee included in the terms of the offer with the seller. Being transparent, MOST BUYERS are concerned about this fee. The good news is that each offer that we submit goes to the seller and with appropriate terms they are not only agreeable to that term, BUT THEY’RE EXPECTING IT. The Home Connections Group are master negotiators with over 48 years of experience to benefit you - let us fight for you and get the best terms and do our job!

WHAT ARE THE KEY TAKEAWAYS OF THE EXCLUSIVE BUYERS’ AGREEMENT?

• Ohio State Law and Mandated by the National Association of REALTORS®.
• Length of Agreement can be as little as 1 day or even for a specific address.
• Commissions are negotiable in each Real Estate Contract, sellers are expecting to see them in offers and they will be written in as a term of your offer.
• Agreement can be severed by either party at any time with written notice.

WHAT IF I DON’T WANT TO SIGN AN EXCLUSIVE BUYERS’ AGREEMENT?

• You are not required to sign an agreement, but to work with a Real Estate Agent in the State of Ohio to conduct any type of Real Estate Transaction an agreement is required.
• An agreement may be requested by your financial institution if financing is involved.
• Without an agreement, you can remain unrepresented in a transaction, consult a lawyer or contact the listing agent directly. In each of these situations statistically, its proven you will spend more money trying to save yourself money versus using a real estate agent.
• Remember, calling a listing agent directly, the listing agents’ primary legal obligation is to the seller and not you, and may have you sign a buyer’s agreement to collect additional commission from their client that’s not disclosed.

HOW IS MY REAL ESTATE AGENT GETTING PAID AND DO I HAVE TO PAY IT?

• Licensed Agents are paid a % of the transaction at closing not by the hour. If we were paid hourly, no one could afford our services and we promise you wouldn’t want to see the bill (research, mileage, driving, showings, offers, negotiations, inspections, appraisals etc.)
• Remember most sellers expect the terms of buyer agent/broker commission to be written into offers. Recently, the Columbus Bar Association aided the Columbus REALTORS® by adding commission language into purchase contract to ensure the language is clear and consistent. If commissions are negotiated out, our commitment is to work it out with you.
• You are signing an agreement with us for transparency. It states the fee we charge (3%) and committing to you that we are negotiating it as part of the terms of your offer. Sellers are most likely going to be looking at a bottom-line number and terms as a whole so the entire package must be attractive to them. They will be looking at the price you are offering, concessions, possession terms as a whole package. Let us work with you to negotiate those terms. We’re good at what we do and have never lost a deal due to a commission term yet!