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Here is my situation. I planned to build a house and went to some open houses. I was satisfied with a lot and asked the seller's agent to hold it (verbally). After that I started to search for a buyer's agent since this is the first time I buy a house and I know nothing about it. Here are my questions.
Q1. Do I even need a buyer's agent after I have already found the lot by myself?
Q2. The agent gave me a "Exclusive Buyer Agent Agreement". I felt uncomfortable after reading it. What if I don't sign it? How about I sign it but specify the "Desired Property" as the lot I want? In this way if I am not satisfied with the agent in the future I can make this agreement invalid by switching my lot. If I do sign the agreement, when should I make it expire?
Q3. I am going to see the seller's agent to put the deposit on the lot and discuss different plans. The buyer's agent first suggested me to not tell the seller's agent that I had an agent until we meet. But later on she changed her mind and told the seller's agent herself. What do you think about this? I remember she told me that she would only talk to seller's agent when she negotiate a price.
A1. It sounds like you want a buyer's agent to answer questions and get you over the rough spots. You may do as well with an informed friend + a lawyer. A2. You don't gotta sign it. If you have any doubts, don't.
Here is my situation. I planned to build a house and went to some open houses. I was satisfied with a lot and asked the seller's agent to hold it (verbally). After that I started to search for a buyer's agent since this is the first time I buy a house and I know nothing about it. Here are my questions.
Q1. Do I even need a buyer's agent after I have already found the lot by myself?
Q2. The agent gave me a "Exclusive Buyer Agent Agreement". I felt uncomfortable after reading it. What if I don't sign it? How about I sign it but specify the "Desired Property" as the lot I want? In this way if I am not satisfied with the agent in the future I can make this agreement invalid by switching my lot. If I do sign the agreement, when should I make it expire?
Q3. I am going to see the seller's agent to put the deposit on the lot and discuss different plans. The buyer's agent first suggested me to not tell the seller's agent that I had an agent until we meet. But later on she changed her mind and told the seller's agent herself. What do you think about this? I remember she told me that she would only talk to seller's agent when she negotiate a price.
Thanks for your suggestions in advance.
John
1. You can purchase the home through the seller's agent, who will work as a "dual agency" meaning they represent both the buyer and seller, but you can always just get your own realtor.
2. Realtors will make you sign a contract stating to the extent you are working with them exclusively so you don't leave or buy a property out from under them, plus so they get paid for their work when you buy. Usually contracts are from 3-6 months but vary.
3. Sounds like you have a realtor now and she's informing the sellers realtor of this so you don't sign a contract with them and that they are informed they will be representing you.
There's nothing that says you have to sign the buyer's agency agreement and appears to be a moot point now. If you do, it can be for as short or long as you wish. I've had a few be for one day or a particular house.
Personally, I would NEVER buy any property without a buyer's agent. Not that they are infallible, but they are held to a different standard than a seller's agent in a dual position. That is like hiring a lawyer to sue your neighbor and your neighbor hiring the same lawyer to defend him.
Someone has to be checking the sales contract for YOUR benefit, OP - and the seller's agent is not - especially in the case where the seller may also be the contractor. NOPE, NOT EVER! Don't do it.
Here is my situation. I planned to build a house and went to some open houses. I was satisfied with a lot and asked the seller's agent to hold it (verbally). After that I started to search for a buyer's agent since this is the first time I buy a house and I know nothing about it. Here are my questions.
Q1. Do I even need a buyer's agent after I have already found the lot by myself?
Q2. The agent gave me a "Exclusive Buyer Agent Agreement". I felt uncomfortable after reading it. What if I don't sign it? How about I sign it but specify the "Desired Property" as the lot I want? In this way if I am not satisfied with the agent in the future I can make this agreement invalid by switching my lot. If I do sign the agreement, when should I make it expire?
Q3. I am going to see the seller's agent to put the deposit on the lot and discuss different plans. The buyer's agent first suggested me to not tell the seller's agent that I had an agent until we meet. But later on she changed her mind and told the seller's agent herself. What do you think about this? I remember she told me that she would only talk to seller's agent when she negotiate a price.
Thanks for your suggestions in advance.
John
1. You don't need a Buyer's Agent, but I would definitely suggest one. A Buyer's Agent will work solely on your behalf and will be able to help you with negotiations as well as with the closing process.
2. If you want a Buyer's Agent working for you, you will need to sign a contract with them before making an offer on the property. However, you have a lot of options that you should be aware of. Here are a few...
a. sign an Exclusive Buyer Agent Agreement for a single property (you'll only work with this Buyer Agent on this one property, they will be compensated when you close on the property)
b. sign an Exclusive Buyer Agent Agreement for a specified period of time (you'll only work with this Buyer Agent, they will be compensated for any property you end up closing on, regardless of how you were introduced to it)
c. sign a Non-Exclusive Buyer Agent Agreement for a specific period of time (you can work with any Buyer Agent, they will only be compensated if they introduced you to the property that you end up closing on)
3. The Seller's Agent should have discussed the different forms of representation to you at first substantial contact. If you have decided that you want your own representation with a Buyer Agent, you'll need to let that agent know. You will also need to be very careful about anything that you might disclose to them. It is the Listing Agent's job to tell their client (the Seller) anything that you might share with them. (Unless they are working as a Dual Agent, in which case, they will not be able to share anything with either of you... this could be good if you want to tie the Agent's hands when it comes time to negotiations, but bad if you want assistance with the negotiations yourself...)
Sounds like you're building new, so if you plan to use a buyer's agent, make sure that person is experienced with new home construction, builders contracts and working with builders in general, otherwise he/she will basically just sit there (if they bother to show up at all), do nothing of any value for you and collect a nice fat check from the builder at close.
Sounds like you're building new, so if you plan to use a buyer's agent, make sure that person is experienced with new home construction, builders contracts and working with builders in general, otherwise he/she will basically just sit there (if they bother to show up at all), do nothing of any value for you and collect a nice fat check from the builder at close.
Aint that the truth!!
just kidding guys.
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Aint that the truth!!
