Real estate broker agreement (sale, renting, houses)

[nitynity]

What's the standard contract length with the realtor when purchasing a property in MD? We are moving from TX to MD and were given a 1 year contract agreement to sign. In my prior experiences, the contracts were only 6 months.



We did visit MD earlier this month for a short trip and started looking houses with the realtor, but won't be officially moving until this Summer. Also renting an apt is an option as well in case there is a delay in finding the right home. In our scenario, it might make sense to sign a 1 year contract since we are not locally available until Summer?

In addition 2.5% is the broker commission (standard I believe?)

[North Beach Person]

Three months, maybe six if you're looking for a unicorn property.

[james777]

Why are you signing a contract? Is it required?

[SaltwaterTherapy]

Originally Posted by nitynity

What's the standard contract length with the realtor when purchasing a property in MD? We are moving from TX to MD and were given a 1 year contract agreement to sign. In my prior experiences, the contracts were only 6 months.

We did visit MD earlier this month for a short trip and started looking houses with the realtor, but won't be officially moving until this Summer. Also renting an apt is an option as well in case there is a delay in finding the right home. In our scenario, it might make sense to sign a 1 year contract since we are not locally available until Summer?

In addition 2.5% is the broker commission (standard I believe?)

I typically do 6 months from the date I send it out. Different circumstances can change things. In your case, I can understand the 1 year Buyer Agency contract. The selling side sets the total brokerage commission and it's divided between the buying and selling side at closing. That should be marked on the BA contract as derived out of the transaction, whatever the seller and their agent agreed to before listing. So, the total commission paid to the sale of the home is probably 5% and is split, 2.5% seller's agent/2.5% buyer's agent.

[nitynity]

Originally Posted by james777

Why are you signing a contract? Is it required?

I thought that was standard.

[nitynity]

Originally Posted by SaltwaterTherapy

I typically do 6 months from the date I send it out. Different circumstances can change things. In your case, I can understand the 1 year Buyer Agency contract. The selling side sets the total brokerage commission and it's divided between the buying and selling side at closing. That should be marked on the BA contract as derived out of the transaction, whatever the seller and their agent agreed to before listing. So, the total commission paid to the sale of the home is probably 5% and is split, 2.5% seller's agent/2.5% buyer's agent.

Thanks. That's what we end up doing as well.

[SaltwaterTherapy]

Originally Posted by james777

Why are you signing a contract? Is it required?

A Buyer Agency Contract is a standard practice. It establishes the working relationship between the brokerage and client, outlining duties and commission structures. It's the Seller equivalent of signing a listing agreement.

Originally Posted by nitynity

Thanks. That's what we end up doing as well.

My pleasure