Question about using r.e. agents for flipping. - Posted by Jack Z.
Posted by Jack Z. on April 06, 1999 at 13:02:29:
Hopefully someone will be able to help me out on this one. I called a broker a few days ago who had a listing on a fix-up. After I asked him to fax me the info on it, I asked if he’d be willing to search the MLS for me with certain criteria. He agreed, and I met him the next day to pick up my packet of info: a list of 74 houses fitting my criteria, and the data sheet on each one. He then put a contract in front of me which was titled “Buyer-Broker Exclusive Employment Agreement”, saying I had to sign it in order for him to make offers for me. Although I had done a fair job to that point of sounding like this flipping business was “old hat” to me, I stumbled on that one, and I told him I’d take the contract with me, read it, and consider.
It seems to me that he can’t “need” me to sign this, only that he “wants” me to sign it, so he can tie me up and cover his a** so I don’t abuse his services. As I understand it, he’ll get his 3% on every junker I buy, and that should be enough. I’m new at this, but I’m not stupid; no way do I want to constrict myself to this one broker, unless I HAVE to. I will deal in good faith with the broker. I have no intention of going around him; he might as well make half the commission-he’ll be that much happier to help me in the future.
It isn’t a requirement for me to sign this contract, is it? By the way, I live in Arizona, if it matters.
All input would be greatly appreciated. I plan on going to his office today to submit my list of nine offers. I just don’t want to tie myself up unnecessarily.