I have a credit partner who is going to help me invest in rehabs. We plan on meeting with an investment realtor to devise a plan.
Should i always sign a buyers broker agreement when dealing with a realtor? And what other questions should i ask of the realtor?
Any suggestions are greatly apperciated.
There really isn’t much of a downside in signing the agreement, otherwise it means that he may represents the seller depending on what state you’re in.
If you’re not happy with the realtor, you can fire the current one and start working with another one. Just make sure that it’s just a buyer agency agreement. There are also other agreements that say that you will agree to work with that particular realtor and if you buy something you owe them a commission regardless of whether the seller is offering a commission or not. That one you might want to think about a little more.
Standard questions would be how long they’ve done it, what were some of the past deals like etc.
MHO - If you don’t HAVE to sign a buyers broker agreement - don’t. Then you can buy from whoever you want. Many RE agents require one to protect their commissions - that’s the point of it. It protects them, not you really.
And if you get into a situation where your RE agent finds the property and is representing both you and the seller - ask that one of you be represented by another RE agent. Too many ethics problems arise when a RE agent represents both sides.
Have fun investing and good luck.
As I said ealier, the buyer agency agreement means the realtor represents you as a buyer. I believe in some states if you don’t sign it, they represent the seller. In Massachusetts, agency laws changed so that by default most realtors only pay a buyer’s agent commission so most realtors here will be representing you as a buyer’s agent even if you don’t sign the form. You have a right to work with whoever you feel comfortable with so just signing the agency agreement form doesn’t lock you into one particular agent. It’s still procuring cause that get’s the agent’s commission paid and that usually means the realtor who shows you the place first gets the commission.
I read that somewere as well, but only if the seller is not represented by another agent, correct?
So what i gather is, not all buyers broker agreements are the same and that i should read my realtors B.B.A. to see if it’s worth signing.
Laws on agency are state specific. Here in Michigan agents represent the seller until a buyers agency is signed. Having an agency signed with an agent allows them to work in your best interest.
why always the antangonistic approach to realtors and their right to ask for compensation. my buyer’s reps that i require all buyer’s who wish to work with me do stipulate a 3% commission, which may be paid in full or in part by a seller. if the seller is not willing to pay the commission the buyer will be required to compensate me at closing as i have done the job they hired me to do. how many of you go to work every day, perform your job and then would allow the company/boss/client to say, you know what i appreciate what you did but not enough to pay you. if you do not want to work with a realtor dont, but if you utilize their service, compensate them. if you work with many agents at the same time, it is only diluting the value these agents are placing on you.
^^^^^^^
It works like this, every time a realtor finds me a good deal, i’ll put the offer through them, so they get the commissin. If their working with me, and i find a deal myself, i’ll still put the offer through them so they still get their commission. Whenever i want to sell something i’ve just bought, i’ll list it with them so they get another commission.
If a realtor works with me in finding and selling rehabs, than of course they deserve to be compensated!
I think we are saying is to choose your RE agent carefully and make sure that if you are signing a buyer’s broker agreement with them - you are certain this is the RE agent you want to work with. Due diligence, that’s all - nothing against RE agents - I have one in my family! ;D
^^^^ I agree.
Having a GOOD HARD WORKING agent on your team will make life a lot easier.