Should I sign on the dotted line? Dealing with Buyers Agents

[dwilliams475]

I've been working with a buyers agent recently. It started out great but he wants me to sign an exclusive agreement, which I think will severly limit my flexibility. The last agent that I worked with went on vacation and I missed my first great opportunity to tie up a property. Should I sign on the dotted line? He has a real phobia about being crossed.

[Gold River]

Hi,

    So this agent wants you to sign a exclusive buyers agency agreement which he wants you to sign, but what you want to know is this for one house, one block or one square mile????

As an investor I use a lot of agents, I use them according to the area they are based in, notice I did not say area of expertise as I only find 1 or 2 in 10 really have the drive and experience to potentially qualify at some level as an expert in there specific market.

Although most agents are professional in presentation and do well showing listings to home owner buyers, they are far from qualified to work exclusively for an investor! Most agents have no real estate investing education, no experience and no expertise to work on behalf of investors.

I don't know what state your in, but pick a town or city 2 or 3 hundred miles away and ask them to meet you there to look at a property, 99 out of a 100 will tell you "NO"!

I invest in Arizona and Nevada as primary markets, I use an agent for example who knows Chandler AZ for my investments in that area and if I want to invest in Peoria AZ I use an agent who is familiar with that area (Chandler & Peoria are 60 miles apart but part of the greater Phoenix area), and if I want to buy something in say Williams AZ (West of Flagstaff) i use an agent in that area.

I would simple tell this agent if you want to do business together great, but I buy real estate all over and I am not going to limit myself to one agent or agency, but don't stick yourself in a position to limit your ability to operate or function!

If this agent say's it's my way or the highway tell him goodbye, and find some other real estate agents to work with!

Good luck,

                GR

[gordo2417]

Agree with Gold River.  I have not and never will sign a buyers agreement.  I work with many realtors and my business does well because of this and having no ties to just one realtor,

Nate-WI

[kdhastedt]

Nor would I.  Advise that you not 'paint yourself into a corner'.  He just wnats a piece of ALL of your action.  Make him work for it!

Keith

[dwilliams475]

I recently spotted three properties in the mls that fit my criteria. I called the broker and asked for the info on the property. I gave him the MLS # for all of them. Their is one in particular that he is very excited about. My question is can this agent give my deal to one of his buyers if I don't have a contract with him, or have the property under contract yet?

[kdhastedt]

What is it that you're trying to do?

Keith

[dwilliams475]

Keith,

I'm trying to get into these properties view them, put them under contract and wholesale them. Yesterday I faxed over POF from a transactional lender. The Buyers Agent won't send it to the listing agent, because he says that it needs to be a bank statement or none intreset bearing Escrow. He says that they won't even allow a viewing of the property unless POF is provided. I think it's B.S! I tried contacting the listing agent no response.

[realestateconnector]

D - I mentioned in a previous post that I used to be a realtor - and as a buyer's agent on the retail side of residential real estate, early in my career I did have buyer's sign them.  I changed that real quick because I didn't want to be locked into them - and that's what an Exclusive Agency Contract does.  Like Gold River and all the others here are telling you, there is no need for that.  Take it from me, realtors, unless they are investors themselves, do not understand.  However, if you want to see a property, call the listing agent and simply tell them that you would like to see the property without going into any details.  They will show it to you.  If, after having done your due dilligence, you find that you have a buyer for the property, then submit an offer.  The listing agent must present the offer to the seller; however, the seller does not have to accept it.  Keep that in mind.

[Delondon]

  The listing agent must present the offer to the seller; however, the seller does not have to accept it.  Keep that in mind.

Very true. Also look at your risk reward ratio. How much risk are you putting down in binder deposit money and how much are you getting in return? Sounds a bit to risky here.