I am new to wholesaling REO’s in my area, which is a rather small town with a population of less than 200k. The realtors that consistently list REO’s are few and far between (about 3 in total). One of the realtors that I am working with has asked me to sign a buyers agency agreement to which I have declined. Can anyone tell me if there are any pros to signing one of these agreements? Also I am using transactional funding for the 1st part of my double closing, since I am not the end buyer how does a Buyers Agency Agreement apply to me? Thanks. :help
It’s basically worthless! When I first started I was of the position that I wouldn’t sign them because I wanted to work with different realtors submitting a couple of offers through each of them a week. Now that I understand things a bit better I can tell you it doesn’t really hurt anything to sign those things. No one ever checks to see if you have any signed with other agents. I probably have about 4 or 5 of thoses things signed with other agents!
The agreement basically says that that particular agent is the sole agent you will be doing business with. It’s a client agreement to keep all your business and offer submissions with that agent.
No one checks behind them. It’s basically worthless in my opinion.
I usually limit the agreement to the specific house that the agent is showing me at that time. I’ll sign one for every house they show me. And I’ll sign one for every house, limited to that specific house, that any other agent shows me.
If they have a problem with working with multiple agents, ask them how long a REALLY GOOD DEAL lasts at their agency (50% - 60% ARV) and it it ever even makes it into the MLS. Unless they’re lying, they’ll tell you they sell so fast it never makes it into the MLS. Then ask why you should limit yourself to only the REALLY GOOD DEALS their agency has.
jmd_forest
Puke on that realtor!!!
I’d work with a Realtor who didn’t ask for one. That’s crazy.