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Are there any items one has to watch out for in them?
1) Make sure that any excess commissions, or "buyer agent bonus" comes back to you. It's sad, but those 8% builder commissions really do motivate some agents to bring you to the properties that pay a higher commission. We write into our buyer rep agreement the amount that the buyer agrees to pay us (which is covered by the listing broker 99.99% of the time) and agree to pass through any excess to the buyer at closing, and the buyer agrees to pay any shortage if the listing offers a smaller commission than the buyer rep agreement.
2) The agreement should define a geographic area. Make sure, if you plan to look over a large area, that you limit the agreement to that agent's area of expertise. Let them refer you to someone else if you decide to look elsewhere.
3) Make sure you can terminate with written notice at any time, as can the agent. Our agreement allows the buyer to cancel immediately with written notice, though nobody ever has. This way if you determine that the agent isn't a good fit for your needs, you can go find another one without having to wait for the first agreement to expire.
As others have stated, some agents never ask buyers to sign a buyer rep, or do so only when writing an offer. Others won't put you in their car without one. Find out what the norm is for your area so you'll know what to expect.
1) Make sure that any excess commissions, or "buyer agent bonus" comes back to you. It's sad, but those 8% builder commissions really do motivate some agents to bring you to the properties that pay a higher commission. We write into our buyer rep agreement the amount that the buyer agrees to pay us (which is covered by the listing broker 99.99% of the time) and agree to pass through any excess to the buyer at closing, and the buyer agrees to pay any shortage if the listing offers a smaller commission than the buyer rep agreement.
2) The agreement should define a geographic area. Make sure, if you plan to look over a large area, that you limit the agreement to that agent's area of expertise. Let them refer you to someone else if you decide to look elsewhere.
3) Make sure you can terminate with written notice at any time, as can the agent. Our agreement allows the buyer to cancel immediately with written notice, though nobody ever has. This way if you determine that the agent isn't a good fit for your needs, you can go find another one without having to wait for the first agreement to expire.
As others have stated, some agents never ask buyers to sign a buyer rep, or do so only when writing an offer. Others won't put you in their car without one. Find out what the norm is for your area so you'll know what to expect.
steve
So, you would allow a client to fire you after you are under contract?
1) Make sure that any excess commissions, or "buyer agent bonus" comes back to you.
steve
Some states don't allow rebating, so in Oregon an agent would be waiving their bonus and the seller's broker would be agreeing to alter their listing agreement with the seller. This would get negotiated outside of any other contracts since you are asking the listing agent to redo their listing agreement.
Basically, make sure your agent explains to you their state laws.
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