Hello all. I’ll try to keep this is brief as possible. I thank you in advance for your time.
I met with an agent today that is advertising distress sales in our newspaper. The agent has invested in a system that gets the info. This is a buyer’s agent and wants me to sign an exclusivity agreement. So, I obviously wouldn’t work with other agents. This would be for 6 months. The listing agent and buyer’s agent would split the commission. What do you think about this? We discussed FSBOs and how we’d handle that, the agent’s experience in this area (rehabs, investing), financing, submitting offers, REO’s, etc.,etc. He gets alot of rentals - landlords wanting to sell, and divorce sales. Overall, I was happy with what I heard. But I didn’t sign the agreement, as I wanted to mull it over and get advice - from y’all in the know. The agent was o.k. with this.
I have really come to the conclusion that to get started and get over the learning curve quicker, I need to work with an agent who has access to all the things that I don’t and know really nothing about at this point - financing, comps, apprasails, title. The question is - should I tie myself up like this? Can I still can market myself “on the side” as I plan to do?
The only things that I guess I took exception to a little were that 1) the agent said that most bank REOs are handled in house with people who know - at the bank -exactly who they want to try to sell to or thru - and that not alot of bank REOs end up on the MLS. . . which is the exact opposite of what I read in a post here (maybe it varies from state to state?), and 2) that the general impression was that "Sell to us today for cash " type companies were preying on the misfortunes of others and like bandit signs were evil (my take on what was said). I’m thinking these really mean nothing in the context of can this agent do the job, but just little things that stuck in my mind as I’ve been reading so much here and there lately to learn. . .
Am I on the right track here? Any advice? Please pour it on. I feel like I"m taking real steps to get started as per my short-term goals I’ve set for myself, but don’t want to jump the gun and overlook something major with this exclusivity thing.
O.K., so this is not so brief. . . but I did try!
Immy ???
I personally work with about 15 agents I think that by only working with one it really limits you to one person searching for you! On the other hand at one point in time I did work with only one and it did work for me! ask for referals how many other investors does he/she have signed up on the same agreement! Also keep in mind I find 95% of my deals without an agent! so its your call!
hope this helps even though I kinda said do it but don’t do it!
Ask for a 30 day agreement! see if they will do that!
I agree with reoconsultants - DON’T sign a 6-month agreement. For all you know, you’ll hate working with this agent after only 1 week, and then you’ll be tied to them for another 5+ months!!!
I signed an agreement per property until I got comfortable with my agent. It was a pain having to fill one out each time, but no way was I going to lock into an agreement without knowing how well she’d perform for me. After a few weeks (and several offers), I signed a 30-day agreement, which I’ve renewed a few times.
o.k. - I’m liking the 30 day part. Why didn’t I think of that? I have to get out of the non-negogiating mindset or I’m not gonna make it. . .
Can I still market myself and do my own thing on the side with finding leads/properties myself? Like if I do flyers and someone responds - do I have to then tell my agent if we’re doing the exclusive buyer’s agreement?
Do you have a good, comprehensive website that has paperwork/forms for things like this (i.e., contracts, etc.)
Thanks for the advice - would like to hear from more too!
From a Realtor perspective, if you care; I like 30 day rep agreements. Remember it obligates the Realtor as well, and I sometimes want to “fire” the client. Looking out for a clients best interst is quite a responsibilty if taken seriously. I will not work for someone who has other agents working the same market, then it is dumb luck rather than hard work that dictates who gets the paycheck. Renewing an agreement allows both parties to decide to continue the relationship. Find an agent you trust, and enjoy working with, but then treat them honestly and fairly and you will benefit from the relationship.
Thanks for all the good advice. I’m definitely doing a 30 day agreement; if this agent would agree I’m sure I can find one that will.
THanks again.