Diane Breaux. Realtor
Worried about signing a contract that locks you into a bad situation? Watch now to find out why EVERY agent will ask you to sign a buyer-broker agreement (BBA).
Video Transcript
Hello. Hello. Hello. Hello peeps. This is Randal and Diane Breaux. We are here in Prescott AZ. We are. That’s right. Yeah. She’s the Prescott pickle lady. I am her sidekick. That’s right. That’s right. When you meet with us, you will get a jar of my famous pickles. And that’s why I am the pickle lady pickle lady. And uh it’s just part of our fun. and we’d love to share our New Orleans recipe with folks coming into Presskit. All right. So, uh, here today to discuss BBAs. BBA stands for buyer broker agreement. Yep. Uh, so some time ago, for those of you who don’t know, some time ago is sometime in 2024. Uh, I think it was summertime, July. July or August, it went into effect. went into effect that you have to have uh a BBA in place in order to show homes uh to buyers and uh a bunch of a bunch of paperwork, a bunch of rigor. In the end, not a whole lot changed. Uh but we thought we’d sort of uh check it out, tell you you guys who haven’t bought a home in the last year and a half, uh expect to sign a BBA. No matter what agent you you’re working with, you don’t have a choice. Yeah, unless you’re buying in Colorado. I think there’s like one or two states that did not This is a national It’s a national thing. Uh ruling by the National uh Realtor uh NRA, National Real Estate Association. Yeah. Um so yeah, you don’t really have much choice. A couple of states did say we’re not participating, but Arizona is one that does participate. So it basically indicates what our compensation will be should you purchase a home. Yeah. So, it’s a contract with buyers just like you have a listing contract with sellers. Listing contract with sellers. I mean, I don’t even know when that started. It’s well before our time. Correct. That’s been around a long time. You’re selling your home. You have a listing agent. You expect to have a listing contract. We didn’t have Well, they had buyer contracts, but not everyone used them. They weren’t that common. It wasn’t mandatory at that time. Now, it’s mandatory. Now, it’s mandatory. So it goes over commission rate which what what we would expect to be paid. If for instance a seller says I’m not paying the buyer’s agent then you it would be upon you to pay that fee. Uh of course then we would just adjust your offer to reflect that to make that up. It’s just another thing that you got to negotiate. It’s another form of negotiation. It’s kind of like an HOA initiation fee. It’s just something else that you have to initiate. Uh negotiate, right? uh is is is just part of the deal now. It really has not changed a whole lot. Uh the the pretty much the uh the the rates the commission rates that people are getting now has not really changed. No. And the seller is still vast majority sellers still paying both seller listing side as well as buyer. So maybe unless it’s a FSBO. We don’t have a whole lot of for sale by owners here. No. So very rarely. In fact, I can’t think of one seller who was like, “Yeah, no, I’m not I’m not going to do it.” Just because that that’s going to preclude them from finding a lot of buyers, you know. Now, that may not I’m sorry, that may not be true in other markets. Yes. Uh in Prescuit, it’s difficult to find buyers because you you have to advertise, you have to bring them in. Uh and so, you know, it it’s it hasn’t changed anything. Maybe in other markets where buyers just kind of show up because you put a for sale sign on your house. It may be different in your area. We’re just kind of telling you what it’s like in Pres. And this is only in Prescuit, correct? And then there’s another section in there that will say how many days after your buyer agreement. Yeah. Uh explain a little bit about that. Oh, well well it has a a term just like any contract. Uh there’s some protection. Uh so in our our contract it’ll say you know if the uh the contract is either cancelled or expires and you don’t uh you don’t go with another buyer agent uh but you buy a home that we showed you within 90 days. You still owe us the commission. That’s just to keep we’ve never had this happen. Never. It’s just to keep people from saying, “Okay, now that you’ve shown me what home I want, you’re gone and now I don’t have to pay your rent. I’ll just go directly to the seller. Yeah, that’s all that’s why that is in place. Um uh it’s never happened to us. Uh most of the people, in fact, all the people that we work with have a lot of integrity. Yeah. Um but our broker has suggested that because in the past there are some people who will do that. Say, “Oh, thank you. I signed. I’m going to cancel it now and now I’m going to go directly to the seller and try to save some money.” And try to save try to get a lower price. try to get a lower price. And so that’s why that verbiage is put in there, not to hold your feet to the fire, but we do spend a lot of time and effort and we spend a lot of money in advertising. And so it’s just uh kind of um you respect us as professionals as we respect you as buyers. Absolutely. And so I just don’t, you know, when you read that people are like, “What does this mean? What does this mean?” That’s all it means. Has anyone ever done that to us? I hope not. I don’t think so. Well, I guess if you did Well, I I would have it at least one or two that maybe tried, but So, we we just appreciate that you understand why that verbiage is in place and what the BBA is all about. It’s to protect all of us, not just us, but you as well. Yeah. You know, and pretty much all agents just use sort of standard forms brokerage. Correct. This is a standard Arizona attempt and it was imposed on the industry. This isn’t something that real estate agents thought was a good deal. No. Yeah. A good idea. Uh, one thing I should I I should mention, uh, people who buy in Prescuit, it is not unusual at all for their home search to take years. Yes. We have sold homes to people after 3 years, five years of searching. Correct. That’s just because, you know, you have to relocate. They may not be retired yet. We’ve had clients who have, you know, ailing family that they kind of have to stay with until they kind of move on to the next uh until the beyond. They’re not really free to move until that happens. That’s right. You’re not allowed to kill them. So, you kind of have to wait, you know, until until nature takes its course. And there are all kinds of things that happen that that it is not unusual at all. Yeah. For uh for people to take quite a while. So we we we typically we uh we do agreements for a year. Um you know for that very reason. So every time we see you you don’t have to sit and resign and resign and resign. Um there’s a reason behind uh our why we like to do it for a year. Sometimes we do six months. We have some people who are very scared and they only sign three months. That’s fine. We understand. We would prefer a year because we know how long it typically does take. Yeah, it’s a process and we understand that. It’s not local buyers, it’s people from out of state and this takes there’s a lot of maneuvering with that and we understand that and we appreciate that. And we have to manage the whole database of buyer broker agreements and when they’re expiring we’ll reach out to you and say, you know, it’s expiring. Do you want to extend? Uh it’s it’s and you know we are paid money for all of that work. No we’re not. No we’re not. We have to do all that work and we get no extra money for it. Yes. Just more stuff that we have to do for the paperwork. That’s right. But we’re happy. I mean we we comply. We will do what what we have to do. And I guess we really appreciate your understanding of why you know don’t shoot the messenger. We’re not trying to force you to do something or force you to work with us. Um, odds are you’re going to want to continue to work with us. We work really hard on your behalf. Uh, and we work beyond the close. People call us all the time and we’re always helping them with this, that, or the other. So, it’s really about a relationship. This is not a formal thing that we’re making you do this and D. Um, we’re all about forming a relationship and having a good relationship with you. Um, beyond the paperwork. Yeah. Oh, one tip. One tip. Uh so we’ve been doing this for a year and a half now. So we’re starting to figure some things out finally uh like expirations and things like that. One thing the contract will tell you what areas you are under contract. Uh don’t sign yeah don’t sign a what we do uh the it’s called the quad city area. So that’s Prescott Prescott Valley and we also do a little business in Chino Valley and Dewey-Humboldt. Um, don’t sign a statewide right agreement with an agent. That’s right. And if an agent tries to get you to do that, you you might want to say, “Look, you know, if I go to another market, uh, I’m probably going to want another agent.” Uh, just something to be aware of. Absolutely. We would never say we represent the whole state of Arizona. First of all, that’s ridiculous. Yeah. Uh, I cannot be in all places at all times. I want to specialize just in my areas. Yeah. And so you should get an agent. You know, that’s our value is that we know this market and that’s what you’re getting from us, right? And so if you sign up with somebody who happens to say, I represent Phoenix and this one and that one and this one. It’s very difficult to have a Phoenix agent really know the market and press it and really be able to find you the home. Plus, they have to drive up here. Yeah. You need a local. Yeah. Just like I would never go down to Phoenix and try to represent somebody in Phoenix, although I could. I don’t know that market. I don’t know the neighborhoods. I want to speak to someone who’s in authority and really knows their stuff. Yeah. If you if you keep that in mind. Yeah. If you’re looking for a place in Phoenix, Sedona, Flagstaff, we can help you find another agent who really knows those markets. We won’t try to do that. Definitely. So anyway, so when you’re presented with this BBA or buyer broker uh agreement, don’t panic. Uh don’t think we’re being hard and we’reird. It’s weird and I don’t feel comfortable. It is scary. I get it. But it is uh something that we are required or we could be fined heavily. We don’t have a choice. Yeah. So, we appreciate your understanding and we just wanted to give you a little education about it so that you would feel comfortable when you do see it. So, hope this helps to all of you out there who are like, “What in the hell? What? Don’t shoot the messenger, my friends. We’re just doing what we what we have to.” So, we can’t wait to see you and and sign an agreement with you. That’s right. That’s right. And we want to show you around our great town. Y. So, we hope to hear from you soon. Uh, if uh you’re looking for more information, the place to go is our free information site. That’s pickle411.com. Whether you’re a buyer, seller, or somewhere in between, there’ll be something there waiting for you that will amaze, astound, educate, and do all kinds of stuff to you. Perfect. And it’s all absolutely free. Yes. All right. Have a great rest of your day. Bye. Bye.
Worried about signing a contract that locks you into a bad situation? Watch now to find out why EVERY agent will ask you to sign a buyer-broker agreement (BBA).
Video Transcript
Hello. Hello. Hello. Hello peeps. This is Randal and Diane Breaux. We are here in Prescott AZ. We are. That’s right. Yeah. She’s the Prescott pickle lady. I am her sidekick. That’s right. That’s right. When you meet with us, you will get a jar of my famous pickles. And that’s why I am the pickle lady pickle lady. And uh it’s just part of our fun. and we’d love to share our New Orleans recipe with folks coming into Presskit. All right. So, uh, here today to discuss BBAs. BBA stands for buyer broker agreement. Yep. Uh, so some time ago, for those of you who don’t know, some time ago is sometime in 2024. Uh, I think it was summertime, July. July or August, it went into effect. went into effect that you have to have uh a BBA in place in order to show homes uh to buyers and uh a bunch of a bunch of paperwork, a bunch of rigor. In the end, not a whole lot changed. Uh but we thought we’d sort of uh check it out, tell you you guys who haven’t bought a home in the last year and a half, uh expect to sign a BBA. No matter what agent you you’re working with, you don’t have a choice. Yeah, unless you’re buying in Colorado. I think there’s like one or two states that did not This is a national It’s a national thing. Uh ruling by the National uh Realtor uh NRA, National Real Estate Association. Yeah. Um so yeah, you don’t really have much choice. A couple of states did say we’re not participating, but Arizona is one that does participate. So it basically indicates what our compensation will be should you purchase a home. Yeah. So, it’s a contract with buyers just like you have a listing contract with sellers. Listing contract with sellers. I mean, I don’t even know when that started. It’s well before our time. Correct. That’s been around a long time. You’re selling your home. You have a listing agent. You expect to have a listing contract. We didn’t have Well, they had buyer contracts, but not everyone used them. They weren’t that common. It wasn’t mandatory at that time. Now, it’s mandatory. Now, it’s mandatory. So it goes over commission rate which what what we would expect to be paid. If for instance a seller says I’m not paying the buyer’s agent then you it would be upon you to pay that fee. Uh of course then we would just adjust your offer to reflect that to make that up. It’s just another thing that you got to negotiate. It’s another form of negotiation. It’s kind of like an HOA initiation fee. It’s just something else that you have to initiate. Uh negotiate, right? uh is is is just part of the deal now. It really has not changed a whole lot. Uh the the pretty much the uh the the rates the commission rates that people are getting now has not really changed. No. And the seller is still vast majority sellers still paying both seller listing side as well as buyer. So maybe unless it’s a FSBO. We don’t have a whole lot of for sale by owners here. No. So very rarely. In fact, I can’t think of one seller who was like, “Yeah, no, I’m not I’m not going to do it.” Just because that that’s going to preclude them from finding a lot of buyers, you know. Now, that may not I’m sorry, that may not be true in other markets. Yes. Uh in Prescuit, it’s difficult to find buyers because you you have to advertise, you have to bring them in. Uh and so, you know, it it’s it hasn’t changed anything. Maybe in other markets where buyers just kind of show up because you put a for sale sign on your house. It may be different in your area. We’re just kind of telling you what it’s like in Pres. And this is only in Prescuit, correct? And then there’s another section in there that will say how many days after your buyer agreement. Yeah. Uh explain a little bit about that. Oh, well well it has a a term just like any contract. Uh there’s some protection. Uh so in our our contract it’ll say you know if the uh the contract is either cancelled or expires and you don’t uh you don’t go with another buyer agent uh but you buy a home that we showed you within 90 days. You still owe us the commission. That’s just to keep we’ve never had this happen. Never. It’s just to keep people from saying, “Okay, now that you’ve shown me what home I want, you’re gone and now I don’t have to pay your rent. I’ll just go directly to the seller. Yeah, that’s all that’s why that is in place. Um uh it’s never happened to us. Uh most of the people, in fact, all the people that we work with have a lot of integrity. Yeah. Um but our broker has suggested that because in the past there are some people who will do that. Say, “Oh, thank you. I signed. I’m going to cancel it now and now I’m going to go directly to the seller and try to save some money.” And try to save try to get a lower price. try to get a lower price. And so that’s why that verbiage is put in there, not to hold your feet to the fire, but we do spend a lot of time and effort and we spend a lot of money in advertising. And so it’s just uh kind of um you respect us as professionals as we respect you as buyers. Absolutely. And so I just don’t, you know, when you read that people are like, “What does this mean? What does this mean?” That’s all it means. Has anyone ever done that to us? I hope not. I don’t think so. Well, I guess if you did Well, I I would have it at least one or two that maybe tried, but So, we we just appreciate that you understand why that verbiage is in place and what the BBA is all about. It’s to protect all of us, not just us, but you as well. Yeah. You know, and pretty much all agents just use sort of standard forms brokerage. Correct. This is a standard Arizona attempt and it was imposed on the industry. This isn’t something that real estate agents thought was a good deal. No. Yeah. A good idea. Uh, one thing I should I I should mention, uh, people who buy in Prescuit, it is not unusual at all for their home search to take years. Yes. We have sold homes to people after 3 years, five years of searching. Correct. That’s just because, you know, you have to relocate. They may not be retired yet. We’ve had clients who have, you know, ailing family that they kind of have to stay with until they kind of move on to the next uh until the beyond. They’re not really free to move until that happens. That’s right. You’re not allowed to kill them. So, you kind of have to wait, you know, until until nature takes its course. And there are all kinds of things that happen that that it is not unusual at all. Yeah. For uh for people to take quite a while. So we we we typically we uh we do agreements for a year. Um you know for that very reason. So every time we see you you don’t have to sit and resign and resign and resign. Um there’s a reason behind uh our why we like to do it for a year. Sometimes we do six months. We have some people who are very scared and they only sign three months. That’s fine. We understand. We would prefer a year because we know how long it typically does take. Yeah, it’s a process and we understand that. It’s not local buyers, it’s people from out of state and this takes there’s a lot of maneuvering with that and we understand that and we appreciate that. And we have to manage the whole database of buyer broker agreements and when they’re expiring we’ll reach out to you and say, you know, it’s expiring. Do you want to extend? Uh it’s it’s and you know we are paid money for all of that work. No we’re not. No we’re not. We have to do all that work and we get no extra money for it. Yes. Just more stuff that we have to do for the paperwork. That’s right. But we’re happy. I mean we we comply. We will do what what we have to do. And I guess we really appreciate your understanding of why you know don’t shoot the messenger. We’re not trying to force you to do something or force you to work with us. Um, odds are you’re going to want to continue to work with us. We work really hard on your behalf. Uh, and we work beyond the close. People call us all the time and we’re always helping them with this, that, or the other. So, it’s really about a relationship. This is not a formal thing that we’re making you do this and D. Um, we’re all about forming a relationship and having a good relationship with you. Um, beyond the paperwork. Yeah. Oh, one tip. One tip. Uh so we’ve been doing this for a year and a half now. So we’re starting to figure some things out finally uh like expirations and things like that. One thing the contract will tell you what areas you are under contract. Uh don’t sign yeah don’t sign a what we do uh the it’s called the quad city area. So that’s Prescott Prescott Valley and we also do a little business in Chino Valley and Dewey-Humboldt. Um, don’t sign a statewide right agreement with an agent. That’s right. And if an agent tries to get you to do that, you you might want to say, “Look, you know, if I go to another market, uh, I’m probably going to want another agent.” Uh, just something to be aware of. Absolutely. We would never say we represent the whole state of Arizona. First of all, that’s ridiculous. Yeah. Uh, I cannot be in all places at all times. I want to specialize just in my areas. Yeah. And so you should get an agent. You know, that’s our value is that we know this market and that’s what you’re getting from us, right? And so if you sign up with somebody who happens to say, I represent Phoenix and this one and that one and this one. It’s very difficult to have a Phoenix agent really know the market and press it and really be able to find you the home. Plus, they have to drive up here. Yeah. You need a local. Yeah. Just like I would never go down to Phoenix and try to represent somebody in Phoenix, although I could. I don’t know that market. I don’t know the neighborhoods. I want to speak to someone who’s in authority and really knows their stuff. Yeah. If you if you keep that in mind. Yeah. If you’re looking for a place in Phoenix, Sedona, Flagstaff, we can help you find another agent who really knows those markets. We won’t try to do that. Definitely. So anyway, so when you’re presented with this BBA or buyer broker uh agreement, don’t panic. Uh don’t think we’re being hard and we’reird. It’s weird and I don’t feel comfortable. It is scary. I get it. But it is uh something that we are required or we could be fined heavily. We don’t have a choice. Yeah. So, we appreciate your understanding and we just wanted to give you a little education about it so that you would feel comfortable when you do see it. So, hope this helps to all of you out there who are like, “What in the hell? What? Don’t shoot the messenger, my friends. We’re just doing what we what we have to.” So, we can’t wait to see you and and sign an agreement with you. That’s right. That’s right. And we want to show you around our great town. Y. So, we hope to hear from you soon. Uh, if uh you’re looking for more information, the place to go is our free information site. That’s pickle411.com. Whether you’re a buyer, seller, or somewhere in between, there’ll be something there waiting for you that will amaze, astound, educate, and do all kinds of stuff to you. Perfect. And it’s all absolutely free. Yes. All right. Have a great rest of your day. Bye. Bye.
