Posted by Bruce Lawson on September 04, 2003 at 19:24:41:
Hi Marcos,
No offense taken.
The major benefit to the buyer when the buyer hires a realtor via exclusive right to represent contract is due dilligence, what I mean is when the buyer agrees to sign a contract with a realtor that realtor now owes his/her new client (COALD)care and confidentiality, obedience, accountibility, loyalty and disclosure. We have fiduciary responsibilities to our clients, therefore everything we do is for our clients best interest and we work with due dilligence to service the client and satisfy their real estate needs. When you work with a realtor you should go back to their office with them and watch exactly what they do to service their clients. Many people think we sit in an office and wait till someone comes in and wants to buy a house, and our job is so much more than that.
What I am saying is you will get a whole lot more satisfactory service from a realtor you actually hire. Now if you have one and the relationship is good and the trust is there then that situation would not need a contract because you are getting the service and the realtor has your loyalty. Until you walk in a realtors shoes and work the business in total compliance to the code of ethics that all realtors swear to at orientation you may never realize how huge it is to have a real estate professional working exclusively for you, and you will see your job as investor will become easier.
Buyers agent contract questions - Posted by SuperMega
Posted by SuperMega on September 04, 2003 at 07:23:25:
I am meeting today with my soon to be buyers agent and he will be asking me to sign a contract to work with him. I was planning on putting in some changes. I dont want him to represent me on any FSBO deals. But are their any other deals I can handle on my own. I have just begun to entertiain the idea of foreclosures and auctions, hud, …
Would I be better off just using a good real estate lawyer for these deals. Also what have others put into their contract with a buyrs agent?
Re: Buyers agent contract questions - Posted by Bruce Lawson
Posted by Bruce Lawson on September 04, 2003 at 11:29:22:
The realtor wants you to sign an exclusive right to represent contract. This is just as it sounds it gives the realtor exclusive right to deal with you and no other realtor can solicit your business without violating ethics. If you find a FSBO and the realtor did not show you that property nothing prohibits you from working a deal directly with the owner. The realtor probably will ask the owner if he will co-op with him if he brings a buyer and that is only if you bring it to his/her attention. If the realtor shows you a house and you work directly with the owner and buy it then the realtor can be compensated. Any board will support the realtor in that case.
If you try to work with multiple realtors each one of them will or should ask you if you are working with a realtor, be honest with them and say you are shopping and they will decide if they want to work with you (most will as long as you are not signed to another realtor).
As a realtor I always ask for a signed exclusive right to represent contract if they hesitate I still work with them as long as they have not chosen someone else, and I show them great service and I almost always get them exclusively. Remember selling houses is part of our business and we need to be careful to protect our business. The Exclusive right contract is also to benefit the buyer because now you have the realtor bound to your housing needs and they are required to work within the contents of the contract. We have fiduciary responsibilities to our clients.
Re: Buyers agent contract questions - Posted by Marcos
Posted by Marcos on September 04, 2003 at 09:45:00:
I have never personally seen the need for a buyer’s agent contract. Why are you signing one?
My recommendation to you would be to not sign it, and instead work with an agent that won’t require a contract. It’s a lot of trial and error getting a good agent. And the last thing you want to do is sign a contact and find out you’re incompatible with the agent.
For instance I once had an agent, I told them I wanted to look at homes in the $40-50k range, but made the mistake of telling her that I was preapproved for up to $150k. I never again got a listing under $120k. She didn’t get it.
The real estate lawyer will be good for closing, but won’t be much good in finding the properties.
So, get an agent and leave the contract at home. There are too many agents hungry for your business to complicate things with a contract. Lord knows there are enough contracts to fill out when you actually get one.
Just my opinion.
Marcos
P.S.- In case I wasn’t clear, name me ONE advantage to YOU for signing the contract? Buyers agent contracts in my opinion are totally biased in favor of the agent, with little or no benefit to their client.
Re: Buyers agent contract questions - Posted by Marcos
Posted by Marcos on September 04, 2003 at 14:30:21:
Sorry Bruce, nothing personal, but I have to ask.
What benefit would there be to me by signing an exclusive contract?
“…benefit the buyer because now you have the realtor bound to your housing needs and they are required to work within the contents of the contract.”
If I sign a contract to purchase a particular property through you, I have those same rights. I don’t need to sign away all my rights for that to be in effect.
I completely understand from your viewpoint why they are beneficial, then you have someone who is going to waste your time, and then work a deal directly with the owner, etc. But, I don’t see any benefit to me the ultimate consumer. If you are a good realtor, and if we have a good working relationship, I trust that you would work on my behalf diligently with little need for an exclusive contract.
Re: Buyers agent contract questions - Posted by Linda Simms
Posted by Linda Simms on September 04, 2003 at 10:18:22:
Marcos is right! You should have little need for a buyer’s agent. Just work with other realtors, if you need a realtor, but don’t get tied up in a contract with just one. A title company can handle all your closings, pick a good one that understands investors. You should have little need for a attorney unless something out of the ordinary happens.