What is the primary purpose of a buyer's representation agreement?

The primary purpose of a buyer's representation agreement is to establish duties and compensation between a buyer and an agent. This agreement outlines the responsibilities of both parties, ensuring that the buyer understands what services the agent will provide during the home-buying process. It also details how the agent will be compensated, whether through a commission based on the sale price of a property or other means. This clear delineation of expectations helps to create a professional relationship built on trust and accountability, which is essential for effective real estate transactions.

In contrast, finalizing the sale of a property involves many steps that occur after an agreement is already in place, and the buyer's representation agreement itself does not negotiate property prices directly but rather lays the groundwork for how the agent will advocate for the buyer in the negotiation process. Similarly, while inspecting the property is a crucial part of buying a home, it is not the main focus of the buyer's representation agreement but rather a task that the agent may assist with as part of the services provided under the agreement.