Agent wants bonus (broker, homebuyer, new construction)

[TeeT]

Hello all I am a first time homebuyer. I was recently contacted by my agent and asked to sign a "form" at my preconstruction meeting. I questioned this form and learned that he was to receive a bonus for my offering of a contract.(beyond his regular percentage) I was told that I needed to sign this form so to show that I was aware of the bonus. Thing is tonight is the first I am hearing of this "bonus" offered by the builder and my meeting is tomorrow afternoon. I am hesitant on signing anything that says I was aware of something I was not aware of. Considering that I am overall unhappy with my agent. Seems all negotiating was done by me. So why does he get a bonus when Ive thought of releasing him? The feeling is that his loyalty is more with the builder than his clients. Understanding that myself and my friend are building with the same builders. So he is getting two bonuses and both of us are unhappy with his services. This request seems underhanded with me and makes me question the entire process. I am almost about to say "I quit" and walk away. I dont want to feel backhanded. any suggestions... ideas?

[faabala]

Is he your "buyers agent" or does he work for the builder? Dual agents have a narrow path to walk to represent both sides fairly.

Bonuses are common in new construction. NC just last year required buyers be informed of any bonus the agents may get before the offer is submitted.

It is up to you to sign or not.

[TeeT]

He's my buyer's agent. So he works for me but is "establishing" a relationship with the builder (his words). In his explanation of the paperwork he mentioned that if the builder makes a good deal then he gets a bonus. I took that to mean that he didn't negotiate for me in order to obtain his "bonus." I just seems fishy that at this stage... afer negotiations, he wants me to sign that I was aware of his incentive when I wasn't. I understand that as he jokingly mentioned "everybody has to eat" but its not my desire to "feed" everybody!

[projectmaximus]

Originally Posted by TeeT

I understand that as he jokingly mentioned "everybody has to eat" but its not my desire to "feed" everybody!

LOL. Maybe you can cook dinner for him in lieu of the bonus?

[c99]

Originally Posted by TeeT

He's my buyer's agent. So he works for me but is "establishing" a relationship with the builder (his words). In his explanation of the paperwork he mentioned that if the builder makes a good deal then he gets a bonus. I took that to mean that he didn't negotiate for me in order to obtain his "bonus." I just seems fishy that at this stage... afer negotiations, he wants me to sign that I was aware of his incentive when I wasn't. I understand that as he jokingly mentioned "everybody has to eat" but its not my desire to "feed" everybody!

Wow. I agree with you - seems underhanded to me. His words sound honest, yet naive. Why would you stick with him if "the builder makes a good deal?" I'm thinking, why didn't he work harder for you to get you a good deal? Probably because he was thinking of his paycheck - so obvious by his words "everybody has to eat."

If he were my agent, I'd not only back out, but I'd request a release of contract. If he won't give it to you, go to his broker and tell the broker what you posted here. It doesn't seem like this agent has your best interests at heart.

[Tchadly]

Originally Posted by faabala

Is he your "buyers agent" or does he work for the builder? Dual agents have a narrow path to walk to represent both sides fairly.

Bonuses are common in new construction. NC just last year required buyers be informed of any bonus the agents may get before the offer is submitted.

It is up to you to sign or not.

Very correct, sounds like to me, your agent probably is trying to befriend the builder in hopest to pick up his biz after your transaction