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I talked to a builder-owner a while back about buying one of their homes. We thought it was too expensive at the time and are reconsidering.
Fast forward 6 months and now we are under a buyers agreement with an agent. Our agent has never mentioned/talked about/dealt with the above builder-owner as it relates to us.
I am sure that the Buyers Agreement contains all kinds of legal-ease to give the buyers agency "exclusive right to represent buyer" whether it is FSBO or listed, so technically they could take their commission.
If we are trying to avoid paying the agents for a transaction they have really nothing to do with , what do I need to do? Wait until the end of the contract? Is there any chance the buyers agency would just let it go since we have a precedent in dealing with the builder, prior to entering agreement with the buyers agent?
I don't necessarily mind waiting but does that mean I have to wait 6 months to close on a home, or 6 months to enter a contract with the owner-builder? Yes--I should have thought more carefully before signing
Since you signed a contract you have to pay the commission if you buy a house. Yes even if you looked at a house before without this agent. It's what happens currently that is applicable. You would have to wait till the contract expires and make sure there is no clause that allows any rights to future commissions within x amount of time after the contract is terminated. I think this is more of a if you terminate the contract early clause to avoid the exact thing you are tryin to do.
On a more personal note can I ask why you don't want representation. I'm not a realtor. I'm just curious why on this particular sale?
I would have the agent call the builder. The agent can tell them you would feel more comfortable having someone on your side looking out for your interests. It's been six months, so the builder may be willing to cooperate with them in the hopes of having the sale.
First off, read your contract; it should explain exactly under which circumstances you would owe your agent their commission. If you don't understand what you signed, I strongly advise getting a qualified legal professional to explain everything in that contract to you.
Secondly, if you don't understand the buyer's agreement you signed, which should be a fairly simplistic contract, why do you feel you would be able to successfully navigate the home purchasing process, which is vastly more complicated, without someone knowledgeable advising you?
I agree with berniekosar19. Check the contract. It would be better if it stated something about homes looked at with this agent, not any and all homes every looked at. That said....who will help you with the next contract, the one with the builder?
Whether you signed the contract knowing the full implications of what you agreed to, or whether you didn't understand the contract that you signed...I have little empathy.
Any buyers agreement I ever read excluded anything the buyer looked at by themselves or previously to hiring the agent. It would have been good if you had listed everything you saw previous to hiring them. But the fact remains you did speak to this builder on your own before the buyers agent was in the picture.
You should be able to tell them that.
However of course what is actually in the contract is what is compelling, But there really should be something about prior contacts in there.
Our lawyer would help us on a FSBO. We have to have one anyway.
The reason not to use the agent would be to save money, assuming the owner/builder will sell for less when they are not paying the commission.
However, I can't see anything in the contract that suggests the broker doesn't get commission on a home we found ourselves/found previously .
As noted, I did not think we'd go back to the owner/builder, so yes we signed the document knowing the implications. Could have simply listed it as an exclusion if we did think that would happen.
I'll see what happens. Nothing is definite right now, i.e. waiting is always an option.
We've looked at 1 house. It was really more our own research over years of living here and our change in job situation, lifestyle and family situation (more kids) that prompted us to consider a more $$$ home. I don't think that entitles them to that much money (i.e. 3% ). I'd be happy to pay for the work they have done but that is not how it works.
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