Just want to know if anyone else has this problem, It seems Every realtor I talk to want you to sign an exclusive buyers contract with them. Problem is I do not want to get exclusive with anyone. I want to work it so that multiple realtors are looking for properties that meet my criteria and whoever I get the lead from is who I purchase and then resell the house with after the Rehab is complete. Is this too much to ask?
When you’re dealing with RE agents, you have to realize that this is their job; it’s how they put food on the table. So understandably, they do everything possible to make sure they will sell houses. One thing they do is have you sign a contract. Basically, all the contract means is that they are entitled to the commission and that you must use them to make the offers. For example, imagine you use an agent to show you a property, they drive all the way out and meet you there. You seem to like the house, but then you use the listing agent to make the offer. This would cut realtor #1 out of the deal and there wouldn’t be any commission for them. A waste of their time. The contracts you sign are only good for one property at a time. It doesn’t mean you’ll be stuck with a certain realtor for multiple deals. I only use one agent to make my offers and then to relist my houses after they’re rehabbed. She likes working with me because I make money and she makes money. It works pretty smooth that way. Hope this helped.
The Contract is trying to lock me into using him Exclusively for 180 days. He may not be the only one I get leads from so I won’t sign it i don’t think.
I have never had a contract with a buyer’s agent. I usually just try to find the agent that I think will do the best job for me, tell them what I am looking for and ask them to try to help me find something. On my personal residence (bought over 20 years ago), I used the listing agent as my agent, and I swore never to make that mistake again. If the seller has an agent, I will have my own. Of course, the last 2 houses that I bought, neither the seller or myself had an agent. Just a closing company. ;D
I’ve never heard of the 180 day thing your agent is trying to get you to sign. I definitely wouldn’t do that. Sounds fishy.
An exclusive deal with a buyer’s agent? That sounds more like a listing agreement for a property you’re selling.
I wouldn’t sign it. I’ve got an agent that helps me find property. If she finds it, she get’s 3 percent when I buy it, and I list it with her. On sale, she get’s 1 percent, even if the buyer is unrepresented. She also does a lot of advertising and open houses before listing – trying to find unrepresented buyers.
But there’s nothing exclusive about our deal. If I find a property without her, she’s not in the deal.
Realtors that are not used to dealing with investors try to send you a buyer’s agent contract just like a listing agent would. This is typical of agents who deal with homeowners. It means you are going to use them as your agent (3%) for the next 180 days even if you find a house on your own you will have to use them for the purchase so they get their commission.
If you come across an agent like them just inform them of what you are doing and tell them how it works. They help you get properties they will get their 3% on the purchase. Then if they do a good job and you can’t sell right away FSBO then they can list it for you as well. Let them know you plan on buying SEVERAl houses not just one. This is why you will not sign an agreement with them exclusively.
Tell them 3% of something is better than 3% of nothing, which is what he will get if he won’t work with you. 8)
I agree with ARamirez,
The only thing I do a little different is I will not sign a buyers agent contract with just one realtor. I personally use twenty or so realtors.
Sorry if I was not clear. Yes, to NOT signing a contract. It does not behoove an investor to be contractuially obligated to any agent.
Come to think of it let’s say I met an agent that handled 100+ REO properties per month. (Not uncommon) and they asked me to sign one of those contracts… I woudl then ask them to sign one of mine where it states they must alow me FIRST DIBs on all the new listings prior to including them on MLS or sharing them with any other 3rd party. HEH!
See how well that goes over!
Oh yeah, do I get points for using the word behoove in a sentence?
Lets get this clear in order to get points for using the word behoove in a sentence you must use it twice!!
LOL I was tired when I posted that so I just did not understand it the first time from now on can you type it slow I really do not read that fast I guess!!!
GREAT ADVICE THOUGH!!! Have a great day!
The best advice I can give you is this…
Only work with the Very Best People.
Make sure you are one of those people.
Assure the Realtor if they do the work you will do the DROA with them and keep your word.
Your repretation is everything in RE.
Real Estate Investor
I would like to hear how anyone has found a good real estate agent to deal with, we have gone through (threw them away) several and disappointed in them all for their lack of insight and follow through.
I have found an excellent RE agent that I have been working with for about 2 years . He gives me first shot at any deals before he lists them on the market. I have purchased 6 homes with him. To show his appreciation for my business he has given me access to the MLS data base so I can do research from my home. When I first started with him he educated me on RE investing, took me out to listing appointments, let me sit in on contract preparations, comparative market anaylsis and closings. Told me about market indicators (buyers/sellers), how to do reseach as well as comps for rent and the best way to finance properties no money down. I was truly fortunate to find him. He has always, since day one, put my interest above commission…I’m sure there are others out there who are just as good…Good Luck!!!
These are all great posts! I personally would not sign an exclusive contratc with anyone. I do like the fact that Mr. Fancy pants understands the agent’s position though. I think the key thing is for the agent to know that you understand that. Also, you need to make sure you act (or keep your word) if the agent brings you awhat you are looking for. I, like REO, work with many agents, but they all know if they bring me a good deal…I am putting it under contract. That keeps them working for me. Also, the interview is important. If you don’t hit it off with them don’t use them. There are plenty of agents out there!
HOW DO YOU FIND AN AGENT.
I think every city (or major city at least) has a BOOK OF LISTS) at the local library. There you will find the top agents in your city. Network with them. Also, drive an area you are interested in. If you notice one person’s or team’s sign on a couple of properties give them a call.
I hope this helps!
Guys thanks for the Responses. I did not sign the agreement and have another appointment with him tomorrow to explain my position a little better. hope this works out because he is the top realtor in the area for the last 5 years.
He’s the top realtor for the last five years, huh? Top in exactly what, listing, selling, making $$$, pouring coffee?
I think that you’re wasting both his time and your time (the most important time). If this agent is a consistent top producer, then he is not likely to be the type of realtor that you need to get the best results, unless you plan on buying 20+ houses through him this year.
This guy is NOT going to be interested in presenting 50-100 of your offers every month, which is what you need to do if you’re primary leads are coming from the MLS. He simply has too much easier money coming in to be bothered with that stuff.
Hey, I could be wrong, but I doubt it.
I have to agree with Roger. The top money earners sell the most houses. Money motivates most people.
I have a great Realtor in NC and Hawaii that I work with on investment properties. I must to have went thru no less than 25 Realtors to find these people.
They are both RE investors. It does take time to find the right person but when you do they are worth their weight in gold.
I sent my Realtors very nice Christmas presents this year, I know their birthdays and their childrens and spouses names and what they like to do. Do you?
Always remember that people are more important than property or money and you will never go wrong.
Here’s one for the RE agents out there. I’ve made a few offers in recent weeks using a buyers agent and they’ve all been shot down. I’m trying to get a feel for what’s going on, on the other end of that fax line as the agent and HO review my proposals. How influential is the listing agent in determining whether an offer is accepted or not? I’m thinking that the fact I have a buyers agent is working against me. For 1. my offers have be lower than asking price and 2. the listing agent would then have to split the commisions with my buying agent. This has to make my offers look less attractive, right? (how much are typical RE sales commisions anyway?) Would a 100K offer from me w/ a buyers agt net the listing agent less commision that a 98K offer from someone w/o a buyers agt? If I approached the listing agent directly with a low offer would he be more apt to recommend the homeowner accept my offer, especially if I assured him the opportunity to sell the property after I’ve rehabbed it = 2 sales. Or would this be considered working in cahoots with me and somehow violating his contract with the HO. Do listing agents tend to be more desperate towards the end of their contract period with a home owner and if so, would it be appropriate for me to ask when his listing contract expires? I imagine a sell below value is better than no sell at all with the homeowner signing a contract with another listing agent. but once again this falls back on how much influence that listing agent actually has. You always hear about motivated sellers but what about motivated selling agents. Homeowners must rely on their agents expertise when it comes to accepting offers but to what extent? 60/40 HO/Agent? 30/70 HO/Agent? What other insightful tips do you have in dealing with agents and increasing the likelihood of offers being accepted? Thanks in advance!
I bought my first house without a buyers agent and decided then that if they HO has an agent, I will have my own. It is possible that the HO on the propeties that you have made offers on have not been motivated or at least not as motivated as you thought they were. Your buyers agent can tell when the listing on the property will expire, so you need not ask (it is in the MLS). I have read somewhere that on the average an investor will look at 100 properties, make an offer on 10 and buy 1 out of the batch. Don’t get discouraged if you offers are not getting accepted. Just think of it as headaches you did not have to deal with while you are hoping to make some money.
Here are my thoughts–I’m a real estate broker.
First of all, the MLS may or may not show the expiration date of the listing. It depends on the particular MLS. In my area, the MLS shows the date the property was listed and you only know it’s expired once it actually expires. Although you could ask the listing agent when the listing contract expires, I doubt that the agent would tell you.
Every state has laws relating to agency that spell out the duties that RE licensees have when they’re representing a seller or a buyer or both. If you choose not to have your own agent and use the listing agent, that agent would likely be considered a “dual agent” meaning that they could not divulge your confidential info to the seller and vice versa. So if the listing agent were to try to influence the seller to take your offer even if your offer might not be the best offer for the seller, the listing agent would be violating his/her obligations to the seller.
When you’re dealing with a dual agent, you don’t (legally) have an advocate. Having someone in your corner is the biggest advantage of having your own agent. In my area, most deals are done as co-ops (involve 2 different agencies). However, you do have the option of paying your own agent with the agent not collecting any commission from the seller. It would be up to the listing agent and seller to negotiate a reduction, if any, in the listing agent’s commission.
How much does the listing agent influence the seller? It depends on the agent and on the seller. If there’s a good relationship of trust and respect between the seller and the agent, the seller would tend to give weight to the agent’s recommendations. You can’t quantify it like 70/30 or 60/40. The percentages are all over the place because each situation is unique.
My recommendation in dealing with agents is to be up front, trustworthy and responsive (always return phone calls promptly, don’t fail to show up for property showings, etc.) Choose your agent carefully–you want somebody who is also trustworthy, responsive and well versed in the business and the area you’re interested in. That doesn’t necessarily mean you have to work with a “mega” agent. On the contrary, you might be better off with somebody who’s on the way up and still hungry.