Exclusive buyer's agreements common in Twin Cities? (St. Paul, Edina: for sale, real estate)

[chicagomama17]

We are looking in fast-moving areas (Highland Park area of St. Paul, Edina, St. Louis Park), and I am wondering how common it is to have a realtor ask you to sign an exclusive buyer's agreement for 6 months. I have asked friends and family who have bought recently, and most have not done that. I am wondering if it is more common in certain markets, or what the main watch-outs should be in such a contracts (eg, ease of getting out of the contract if circumstances change). Thank you so much.

[golfgal]

No, not common but not unheard of either. I wouldn't sign one, especially for 6 months.

[ocsid]

Don't sign. Most realtors won't ask this.

[StilltheSame]

I looked in SLP and had realtors request that I do so.

[billhelm]

if a realtor has to do this, I question how good they are...

[golfgal]

Originally Posted by billhelm

if a realtor has to do this, I question how good they are...

I could see it go both ways that they are excellent realtors and put a lot of time and effort into the process or they aren't very good and need to hang on to their clients. I have heard from a few realtor friends where they will spend a lot of time with clients, especially higher end clients and when it comes to making an offer they have a friend or relative step in and do the actual sale--and get the commission. I still wouldn't sign an agreement either way though.

[WoodburyWoody]

Originally Posted by golfgal

I could see it go both ways that they are excellent realtors and put a lot of time and effort into the process or they aren't very good and need to hang on to their clients. I have heard from a few realtor friends where they will spend a lot of time with clients, especially higher end clients and when it comes to making an offer they have a friend or relative step in and do the actual sale--and get the commission. I still wouldn't sign an agreement either way though.

Doesn't seller pay commission, not the buyer? That is how it was when we have bought (and sold and bought again).

[golfgal]

Originally Posted by WoodburyWoody

Doesn't seller pay commission, not the buyer? That is how it was when we have bought (and sold and bought again).

Yes, but only if someone buys the house

[mnmarina]

For most buyers it is in their best interest to sign an exclusive buyer agreement. It protects you because without it signed the Realtor that you are talking to can share your price, terms, motivation with the seller or the listing agent

If signing a 6 month agreement is to much of a commitment- change the term to 3 months -the start and end dates are filled in by the Realtor.

I always ask my buyers to sign an agency disclosure statement(explains the different types of agency relationships), and an exclusive buyer agent agreement. If they don't like me or want to hire another agent they simply need to tell me or my broker and the agreement is terminated.

Here are the most common types of Agency-(without that form signed ,your agent may be acting like a buyers agent but in fact is not and cannot perform 100% for you.

Sellers Agent

The name should tip you off that this is not the type of relationship you want with your REALTOR when buying a home.

Dual Agent

A dual agent attempts to represent both the seller and the buyer, or attempts to represent the buyer while another agent licensed to the same broker represents the seller.

Common sense suggests that having a single agent or agency represent opposing interests can bring trouble. Making things worse for home buyers, the law of agency , licensing laws and the REALTOR code of ethics put the dual agent's fiduciary duties legally and ethically with the seller. And that's just one reason home buyers should beware dual agency.

Almost all agents work this way and unless a real estate agency advertises that it is one of the few that represents home buyers exclusively, you're safest if you assume it is a dual agency.

Two of the five options described by the Minnesota Associations of REALTORS could, more or less, fall into the dual agent category: A "subagent" works with a buyer but, as far as the law is concerned, represents the seller. A "facilitator" might work with both seller and buyer on a real estate transaction, but remains aloof from fiduciary representation.

Buyers Agent

Because buyers agents act solely for the interests for the buyer, this is clearly the type of relationship you'd want when buying a home.

Making things even less complicated, a few agencies have gone the next step. They reassure, providing full representation to the interests of the home buyer by working as exclusive buyer agents and never listing homes for sale.

This the type of REALTOR home buyers will want to seek.

Originally Posted by golfgal

I could see it go both ways that they are excellent realtors and put a lot of time and effort into the process or they aren't very good and need to hang on to their clients. I have heard from a few realtor friends where they will spend a lot of time with clients, especially higher end clients and when it comes to making an offer they have a friend or relative step in and do the actual sale--and get the commission. I still wouldn't sign an agreement either way though.

[ocsid]

I think part of it depends as well on if you are selling a house and looking to buy at the same time. When we bought our first house, we had a buyers agent. She was a family friend I'd known for years - she did nothing to find the house for us, but the seller and her agent were scumbags who tried to pull a fast one at closing (we were young and naive) and our agent really went to bat for us.

When we sold our next two houses, our buyers agent was also our selling agent, so they were already helping us with our sales, so the situation was a little different. We weren't asked to sign an exclusive buyers agreement since we were already in business with the agent to sell our existing property.

We dealt with the dual agent situation when we bought our cabin. We did not hire a buyers agent, and allowed the listing agent to represent both parties, knowing that her main priority was to the seller. I was fine with that because we weren't in a position where we had to make a purchase, and every demand we made was accepted by the seller. Had there been any serious pushback from the seller, we'd have just walked away, and they knew it, so it worked out fine.