Posted by Marc Massis on September 15, 2004 at 09:42:43:
Hi Vlad,
I am a full time licensed Realtor in the state of Virginia - very active in the relocation business. What you described about the Realtors request for compensation is not normal atleast in our market. It should be based on a percentage basis and the realtor will get paid only when there is a closing. Moreover, a one year agency agreement is really too long - not normal. Most I have seen is 6 months. So be careful before you sign anything and interview a few other agent/brokers in your area. I will be happy to refer a reputable broker if you wish. Good luck to you.
Is This Agent Trying to Pull a Fast One? - Posted by VlaDE
Posted by VlaDE on September 14, 2004 at 18:59:11:
I am interviewing a broker/agent in PA (as a buyer agent).
Some red flags:
-Had to ask her 3 times to send me the agreement (twice it was sent without the page addressing compensation - on that in a minute).
-Have been urged all along to “just sign the papers and return to her, so we can get going”
-Agreement is for a full year
-And the kicker: She has a fixed dollar amount ($2,500) as a minimum for received compensation. If the commission collected from seller is below $2,500 I have to foot the difference. And finally, she gets paid whether or not her side was involved in the property acquisition/negotiations!!!
So, I go out, find a motivated seller, arrange everything and write her a check for $2,500? Don’t think so!
Is this something standard, or am I getting my leg pulled here?
Posted by E.Eka on September 16, 2004 at 12:39:26:
Why again do you need an agent? WHy are you wasting your time with this person? If you need their services, you go find one and do the deal with them. Do everything on a deal by deal basis. DOn’t waste your time trying to set up a “team” when you don’t have a deal in place.
Re: Is This Agent Trying to Pull a Fast One? - Posted by Anne_ND
Posted by Anne_ND on September 15, 2004 at 08:42:44:
Vlad,
I’ve successfully used real estate agents as both seller and buyer. Good for you for reading the docs so thoroughly- so many people do not.
If you want to work with this person, just amend the docs as you prefer before you sign them (initial your changes) and send them back.
For instance, I only sign docs with an agent for one specific property at a time. And if you want them to take a percentage, not a fixed amount, then put that in there too.
Good agents have to work as hard on the a cheap property as an expensive one (maybe harder!), yet their compensation is dependent upon the price. It seems reasonable to me that they’d want to be paid for their time.
I’ve recently bought two properties through the most successful agent in our city. In each case his compensation was less than $200 based on the percentages. I think he enjoys working with a fellow investor and he knows I’ll do more deals with him. Also our deals tend to have lots of problems with them- title problems or other issues- and he knows I’ll do all the legwork, he just gets his check in the mail when we close.
I think the best agents for an investor tend to be the smart new ones who are hungry or the smart and succesful ones who don’t need the money.
Re: Why Even Use a Buyer’s Broker? - Posted by Cheryl Lopez
Posted by Cheryl Lopez on September 14, 2004 at 23:27:40:
Why even use a Buyer’s Broker and you have to pay the commission?
MLS does have public access for buyers to review listed properties. That way you will contact the listing agent and receive direct info on the property from the listing agent.
You can call the local board of realtors in your area and they will provide you with the website.
I also entered “public access MLS” in the browser and several options came available. Helpful to enter the town and state.
Being a broker myself … sounds like this agent does not review paperwork and documents completely and missed some simple notations.
Posted by Jim V on September 14, 2004 at 22:25:59:
If you are going to produce several transactions a year, I’d say look elsewhere for an agent.
On the other hand, if you have no track record, and want her to do a lot of background work before you potentially start submitting offers that will close, it might not be a bad deal.
If you are going to find the sellers on your own, and negotiate deals on your own, you don’t need a buyer’s agent.
Re: Is This Agent Trying to Pull a Fast One? - Posted by A Former Agent
Posted by A Former Agent on September 14, 2004 at 22:11:10:
She’s definitely working things in her favor. Just based on what you’ve
written, I’d think seriously about saying “no thanks” and finding
someone else. What exactly was her role going to be in your deals?
Finding them? Just handling the paperwork? ???
When I hear things like: “Just sign the papers and…” I tend to
wonder what I’m getting myself into.
GB
Always, first and foremost remember…EVERYTHING is completely negotiable. In this instance, two people agreeing on terms of compensation.
You are not limited to only one agent right? Work on terms that are in your favor.
Best wishes,
Paul