Buyer rep agreement (new home, construction, closing)

[amindu]

Is it standard protocol to sign a buyer rep letter for one year for new construction? Realtor is giving a rebate as well. Thanks

[tcualum]

My realtor provided all sorts of support and help when we bought a new construction spec home. She had experience with the onsite builder rep and knew who I needed to call during different points in the process. Sometimes she stepped in and got things resolved when I couldn't. They were more concerned about not upsetting her because they wanted her to continue recommending their company to her clients. She came with me to the final walkthrough and noticed problems that needed to be fixed before we took possession that we didn't see. I was very glad that we had her as our advocate during the process.

I would ask what sort of help your realtor provides during the build process before you sign it.

[jbleioje]

No it's not standard to sign an agreement. Find a better realtor.

[amindu]

Originally Posted by jbleioje

No it's not standard to sign an agreement. Find a better realtor.

Would your response change if she was providing a 1% rebate and it’s outlined in the agreement that Her commission would be 2%?

[dallas_cowboy]

Originally Posted by amindu

Is it standard protocol to sign a buyer rep letter for one year for new construction? Realtor is giving a rebate as well. Thanks

one year is too long no matter what kind of cashback you get. What if you hate this realtor 30 days into your agreement and want to switch? Well you will be stuck for 11 more months unless realtor agrees to void the contract. 6 months is standard practice.

If the whole purpose of signing this is just to get 1% cashback, then let me tell you that there are cashback realtors who will charge flat rate commission and give you lot more than 1% but they won't provide any service. Their name will be on the contract and you do all leg-work.

[amindu]

Originally Posted by jbleioje

No it's not standard to sign an agreement. Find a better realtor.

Originally Posted by dallas_cowboy

one year is too long no matter what kind of cashback you get. What if you hate this realtor 30 days into your agreement and want to switch? Well you will be stuck for 11 more months unless realtor agrees to void the contract. 6 months is standard practice.

If the whole purpose of signing this is just to get 1% cashback, then let me tell you that there are cashback realtors who will charge flat rate commission and give you lot more than 1% but they won't provide any service. Their name will be on the contract and you do all leg-work.

Yea I think we want to have that option should issues arise that she is there for us, given how the market is and with supple and labor shortages I imagine there will be. We thought about the flat rate or even others who’d give 1.5-2:5% back. She has already driven out to check out other builders for us vs the one we are looking to go with and do a virtual tour. I am going to ask her if she’s designating one year because that is how long it takes a new home build so she can represent us along the way or does that not matter as long as her name is on the builder contract paperwork that she can represent us. If so then 6 months should be sufficient why 1 year.

[dallas_cowboy]

Originally Posted by amindu

Yea I think we want to have that option should issues arise that she is there for us, given how the market is and with supple and labor shortages I imagine there will be. We thought about the flat rate or even others who’d give 1.5-2:5% back. She has already driven out to check out other builders for us vs the one we are looking to go with and do a virtual tour. I am going to ask her if she’s designating one year because that is how long it takes a new home build so she can represent us along the way or does that not matter as long as her name is on the builder contract paperwork that she can represent us. If so then 6 months should be sufficient why 1 year.

She does not need 1 year agreement just because building a house takes 1 year. Once her name is on the contract, then she is entitled to get buyer's commission at the closing. Is this your 1st home?

[amindu]

Originally Posted by dallas_cowboy

She does not need 1 year agreement just because building a house takes 1 year. Once her name is on the contract, then she is entitled to get buyer's commission at the closing. Is this your 1st home?

2nd home, however first agent was useless and added no value. I don’t remember if we ever signed a rep agreement.

[jbleioje]

Originally Posted by amindu

Would your response change if she was providing a 1% rebate and it’s outlined in the agreement that Her commission would be 2%?

No, my realtor rebated >1% with no contract.

[jbc12345]

Is it common for realtors to offer rebate? Ours hasn't mentioned anything and can't say they provide much help.