Know Your EXIT with an agent
I have a couple of operating principles that I developed over my time in real estate. I call them my 804-Maxims. One is: know how you get out before you get in. With that in mind, the first form I hand a prospective buyer is the "Release of Exclusive Right to Represent Buyer Agreement," or in other words, "How to Fire A Real Estate Agent."
Essentially, I do not want to work with people who do not want to work with me, and I want to give you an Easy Out that most agents would never consider. If I am not returning your calls, not delivering, or not fighting for you, you will know exactly what to do. I would appreciate the opportunity to make corrections or adapt where you feel your needs are not being met, but in the end, I will not hold you hostage.
Can I look at the exit form?
Absolutely! It's Form CVR 307, the Release of Exclusive Right to Represent Buyer Agreement, and you can read it first. One copy is blank. The other has my brokerage information filled in, so you can see what it looks like when it is ready for you.
Do I have to commit before I see a home?
You do need to make a commitment, not a long-term commitment. Think of it as a test drive, with both of us in the driver's seat. Virginia law (§ 54.1-2132 and § 54.1-2137) requires us to have a written agreement in order for me to show you homes or give you advice. This protects both you and me. So I offer a One-Tour Courtesy.
Sign one simple, time-limited form
Virginia law requires a written brokerage agreement before an agent shows you a property. So we sign a limited agreement that covers only the homes we see that day. There's no long-term commitment and minimal risk for both of us.
Tour a home (or two)
The first home tour is our mutual job interview. You see how I evaluate a property, how I communicate, and the things I look at when touring homes. And I get to see what matters to you, the types of homes you like, and what you like about them.
Decide
If it is not a fit, we shake hands and go our separate ways. If it is a good fit, we sign an extended agreement and start our working relationship. If we decide to work together, you still have the easy exit: the "How to Fire Your Real Estate Agent" form.
Can I read the Buyer Agency Agreement (CVR 310) before I sign?
Yes, I encourage you to read anything before you sign it. This is the sample CVR 310, the Exclusive Right to Represent Buyer Agreement. My brokerage information is filled in and everything else is blank. Read it alongside the paragraph-by-paragraph explanation below.
What is it like to work with 804-Michael?
You get my direct line, my priority, and a plan built around you. Once we sign the full agreement, here is what that looks like:
- Direct access. You go into my phone contacts. No spam filter, no assistant, no phone tag. You are in my contacts, so during business hours your call or text reaches me. If I cannot answer your call, my goal is to respond to texts and phone calls within an hour, though sometimes I am in a class or teaching one, and a reply may take a little longer.
- Priority showings. When a good home hits the market, waiting 48 hours or until the weekend can mean losing it. Active clients get scheduled as fast as access and schedules allow, sometimes the same day, depending on property availability.
- Custom searches. Saved searches in the Central Virginia Regional MLS, adjusted as often as you like, one for your strict criteria and others for the wildcard ideas that consumer apps are slow to show.
- Contract and contingency strategy. I teach agents the Virginia purchase agreement, and I walk you through our plan for repair credits, radon testing, well and septic due diligence (with inspections you order, so you are not relying only on the seller's), and appraisal gap protection.
As part of that, I charge a $500 engagement fee.
Other professionals, including builders, architects, accountants, and attorneys, ask for a retainer before they start, and real estate agency done properly is no different. Here is how the fee works:
- It is earned when paid, for setup, data tools, hard expenses, and consultation time. You can still use the How to Fire Your Real Estate Agent form at any time, but the fee is not refundable if you cancel.
- It stays as long as our agreement does. When we sign the extended agreement, I like to make it a 12-month term to simplify paperwork. If we extend the agreement, your fee carries forward with it, with no new fee, even if the search runs 18 months or longer. If the agreement ends and we sign a new one within 30 days, there is no new fee. After 30 days, a new agreement starts with a new fee. I want you in the right home when the timing fits, and this is not a gym membership or a streaming service.
- It is a commitment on both sides. An agent is typically paid only when a transaction closes, so the fee is a modest way to share the investment I make in your search, and it helps me focus my time on people who are ready to buy.
- It comes back to you at the closing table. The $500 is credited to you on the settlement statement. If the seller pays my entire fee, the $500 reduces your other closing costs or prepaids instead, as your lender and title company allow. If a credit at closing is not possible, we will work out another way to return the $500 to you, such as paying for your inspection or appraisal directly, documented as your lender and title company require.
- It is waived for repeat clients and long-standing personal relationships.
Who pays my commission?
On paper, you do. In practice, it depends on market conditions. Gone are the days of a guaranteed commission published in the MLS. Compensation is now a term of our agreement with one another, and I will work very hard to make the case for a seller to pay all or most of it.
The short version: you owe it on paper, who pays it in practice depends on the market, and I can never collect more than we agreed.
- It is written down. The form states the exact amount, a percentage of the price, a flat figure, or a combination of the two. No hidden fees, no surprise charges, and no separate transaction fee. Some agents add this junk fee and often give dubious reasons for it; I do not charge any additional fees on top of my commission.
- It is negotiable. The form says so up front: no law, MLS, or REALTOR® association sets any commission amount (minimum or maximum).
- The seller can be asked to pay. In an offer, we can ask the seller to cover all or part of my fee as part of the settlement charges. Whatever they pay credits against what you owe, dollar for dollar. If they decline or cover only part, that is one more piece of the price and terms we negotiate, and you already know your baseline.
- It is capped. I cannot accept more than the amount in our agreement, whoever offers it.
- There is a timeline. A start date and an end date, never an open-ended lock-in.
What are we each responsible for?
You agree to
- Work only with me during the term.
- Check with me before going to open houses, model homes, or builder trailers, or contacting sellers directly.
- Tell any other agent or seller right away that you are represented.
I agree to
- Keep your information confidential, including after closing.
- Evaluate market pricing and negotiate for you.
- Put your interests first.
Do you represent both sides of a sale?
No. I do not practice dual agency, because I pick a side and it is yours. Virginia allows one agent or firm to represent both the seller and the buyer if both consent in writing. In that setup the agent cannot advise either side on price, terms, property condition, or repairs, and cannot advocate for either in a dispute. If you want a home I already represent the seller on, I will not take on both roles, because then neither of you would have an agent advising you. You keep full representation.
Why don't we talk about offers inside a home?
Because the home may be recording. That doorbell is watching and the smart speaker on the counter is listening, so assume any home we walk through is capturing audio and video. We never discuss offer strategy, your budget, or how much you love the place while inside or on the porch. We talk in the car or on the phone.
What does each paragraph of the Buyer Agency Agreement (form CVR 310) say?
Here is the form in order (open the sample), each with a one-line translation. Open any paragraph for the detail.
1. Appointment and scopeWho I work for, and where we are looking.
You hire my brokerage to represent you in acquiring real property. We name the type of property and the general area of Central Virginia, so the search has a clear focus.
2. TermStart and end dates. A relationship, not a timeshare.
The agreement begins on an agreed date and ends at midnight on a set date. It is never open-ended.
3. Broker's dutiesWhat I owe you. Short version: I am on your side.
My obligations as a standard agent under Virginia law: find suitable properties, keep your personal and financial information confidential (even after closing), and negotiate for you alone. I do not represent the seller.
4. Buyer's dutiesWhat you owe me, mostly loyalty and a heads-up.
- Work only with me during the term.
- Provide the information needed to keep the transaction moving.
- Pay the agreed broker compensation.
- Be reasonably available to tour homes.
- Check with me before open houses, builder trailers, or contacting owners or other agents directly. That prevents confusion over who represents you and accidental fee liabilities.
- Tell other agents and sellers right away that you are represented.
5. Broker compensationThe money, and who covers what.
- Negotiable. Not fixed or mandated by law, the MLS, or any REALTOR® association.
- The agreed fee. The exact amount, stated up front.
- Who pays. After crediting anything received from a seller or another source, you pay the balance.
- Protection period. If I show or describe a home to you during the term and you buy it within an agreed number of days after the agreement ends, the fee is earned, unless you have signed with another licensed firm.
- Cap. I cannot accept compensation from any source above the agreed amount.
6 and 7. Dual and designated agencyWhy the form talks about dual agency. I do not do it.
Required language, because Virginia allows dual agency with written consent. Paragraph 7 says that in dual agency an agent cannot advise you on price or terms, on property conditions or repair requests, or advocate for either side in a dispute. I do not offer dual agency. We will discuss designated agency if it ever comes up.
8. Audio and video recording in propertiesThe house may be listening.
Assume any home is recording. Keep offer talk for the car or the phone.
9 and 10. Miscellaneous and electronic signaturesI am your agent, not your inspector, and you can sign from your phone.
Confirms that my expertise is real estate brokerage. I am not a home inspector, structural engineer, real estate attorney, tax professional, or surveyor, and when a technical or legal question comes up, we bring in a licensed expert. Paragraph 10 lets us both sign electronically.
11. Other termsAnything else we agree on, in writing.
Blank lines for any other terms we agree to. Paragraph 9 says the signed agreement is the whole deal and can only be changed in writing signed by both of us, so anything not written down does not count. If it matters to you, it belongs here.
General information, not legal advice. The signed agreement governs, so read the form itself and ask an attorney about anything specific to you.
Ready for a test drive? Your next three steps
- Pick one or two (maybe three) homes to tour. We sign the limited single-day agreement and treat the tour as our job interview. Sample form
- Read the exit door. Look over the How to Fire Your Real Estate Agent form (blank or filled out for 804-Michael) so you know how it works before you commit to anything.
- Decide after the tour. If we both want to continue, we sign CVR Form 310, the $500 engagement fee starts your day-one tools and direct access, and your search is running. Then we go find your house.
Real Life Real Estate. Let's chat.