Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My wife and I have purchased three homes (all in different states) and sold one. We worked with three real estate agents so far. In hindsight, the first two agents weren't so good. At that time we were unhappy on many occasions, but because we were inexperienced, we thought that was how it should be and didn't make big deals. Now, 12 and 7 years later, we sometimes resent over what they did to us. The third one, however, was good. After talking to us, she figured out our needs and our finance and gave us suggestions based on them---all of which were quite good and it only boiled down to what exactly we preferred. We were and still are happy. She also represented us when we sold it.
The interesting thing here is the first two asked us to sign the exclusive buyer's contract/agreement when we first met. We just signed it because we were told that that's the way it was. However, the third agent did not ask to sign anything. We were just happy. I think she is a real professional that doesn't need a legal contract to bond with her clients. But I am not sure how much of this is regional differences vs. individual differences.
Now, my real question here is---
I have rather a strong opinion about signing a buyer contract with a realtor. I would not do it, if at all possible. If he/she is competent and once good bonding is established between us and the agent, we don't need a contract. I would not sign a contract on the first day we meet the agent.
We are soon beginning our house hunting in this new location we just moved into. Can I refuse to sign the contract early on and let the agent know that we do not sign it unless we are sure...so please first show us that you are good with us....
Will this approach be OK? What is your perspective as a professional on someone with this approach?
The areas that we have been through are CO, UT and OH (in that order) and now we are in the Washington DC area...if that helps.
One more thing---we will be looking for a home anywhere in 3 states or district (VA,MD,DC). Right now we live in VA but we still see all pros and cons in each of these localities. Real estate agents here seem to be working in only one locality. I basically want to have 3 agents in each of these to help us and whenever a good home is found in any of these we will consider and make an effort to make a deal, so these agents need to sell their case strongly, then we will pick one..... Am I dreaming too much?
Maybe if this is too much and makes you professionals frown, I would be just happy to find someone (that doesn't need a contract on day one) and ask him/her to search for homes in all three states. What do you think?
(edit) Actually we did sign buyer's exclusive agreement with the agent in OH, but it was when we made an offer. Also, when she represented us as seller's agent, we signed the exclusive agreement from the beginning, which we didn't have any problem. So, I am not really against signing the agreement itself, but just don't like to sign it too early on.
We have signed agreements in the past, but our realtor during our recent purchase did not ask us to. He says he never does, and if he's not doing the job the client should be free to go elsewhere. He did a great job and I can see why he gets plenty of work.
With the three areas: because they're not in the same state, I'd use three agents and let them know upfront that I'm also working with two other agents. Because so much can be done online by the buyer, I wouldn't bother the realtors to do anything that I could do myself until I'd narrowed it down to one area.
Another possibility is to look in one area at a time, if your time-frame allows.
I'd also be careful not to let it become, "May the best agent win." You're trying to find the home that is best for you, not trying to reward the best agent.
I use buyer agency agreements, but I don't require them on day 1. I do a buyer consultation before we go out and we go over the agreement, my business practices, and agency stuff. After that I will give buyers a one day trial trip with me to see if my style works well for them. After that I ask for it to be signed. Most clients do it for 90 days, but I've had clients agree to just 30 days. That's fine too. An agent who used to participate on here would do one day agreements. I know an agent that does two week agreements.
It isn't the agreement that is the issue, it is the terms in the agreement. Just don't agree to be locked in for a crazy long time, like a year or something. Read the termination clause carefully. I don't use the REALTOR generated one in my state as I think it isn't a fair contract, but you can negotiate the terms of the contract.
I also think you might find an agent that does all three areas out there. I know some agents will cover that much territory because buyers tend to go back and forth all over out there.
It changes the relationship to a lawful client relationship. If I show you one of my companies listings (which we have thousands), without a Buyers agreement I represent the seller who has a Listing Agreement and do not represent your best interests.
The agent has many more legal responsibilities when you and they have signed a joint agreement for legal representation.
Each state has different agency laws as well. You want to make sure they are representing "you" and not a sub agent for the seller. Ask each agent in each state what their law is (hopefully they know it). VA just had a huge change in Agency Law on July 1, 2012.
It changes the relationship to a lawful client relationship. If I show you one of my companies listings (which we have thousands), without a Buyers agreement I represent the seller who has a Listing Agreement and do not represent your best interests.
The agent has many more legal responsibilities when you and they have signed a joint agreement for legal representation.
That really depends on the location. Here, we have a separate disclosure form that defines the legal agency/client relationship, and it's not an employment contract. We also have an optional broker-buyer employment agreement. If I were to show one of my companies listings, then I would need both buyer and seller to sign a limited dual agency agreement.
The OP should check each state for what agreements and disclosures are required vs. optional and the implications of signing or not signing.
I have rather a strong opinion about signing a buyer contract with a realtor. I would not do it, if at all possible. If he/she is competent and once good bonding is established between us and the agent, we don't need a contract. I would not sign a contract on the first day we meet the agent.
We are soon beginning our house hunting in this new location we just moved into. Can I refuse to sign the contract early on and let the agent know that we do not sign it unless we are sure...so please first show us that you are good with us....
Will this approach be OK? What is your perspective as a professional on someone with this approach?
It depends on state standards. Technically by SC laws I'm not supposed to show buyers any listings but my own companies unless they are client. They can only become a client by showing a buyer agency. Now of course agents break this one constantly but technically they should have a signed BA.
My suggestion is to just sign one if required for a specific action or time-either for a single day or a specific address. That way you fulfill obligations if the state is a written agency state, you have recourse as a buyer, and the agent gets some protection for their time.
Thanks a lot. Your explanations help me better understand the process.
Then it seems that I could actually approach an agent and ask him/her to show me some properties listed by the office that he/she belongs to without worrying about signing the form, right? As long as I acknowledge that he/she can represent/work for the seller and not me because I did not sign it. Correct? Maybe I could bring a pre-approval letter and tell them I am a serious buyer but haven't narrowed down the area so I need to explore a little bit without committing to one area or one agent. Then hopefully they will be OK, right?
(I know... in the end, I would like to have someone represent us, through either dual agency or we could our own agent that we signed with).
Hey, I've got a lovely house in Hagerstown I can sell ya
Sorry, that would've been lovely but that seems too far. We want something inside the beltway.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Sorry, that would've been lovely but that seems too far. We want something inside the beltway.
