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We have arrived in NC having sold our AZ home. Now we are on the buyer end of the spectrum with new challenges. But I am the same old grumpy curmudgeon who questions everything and wants to do it my way.
We have an agent we like very much. He was born and raised in Brevard and knows that area exceedingly well. He also claims to know South Asheville down to Hendersonville. Now he wants us to sign an exclusive contract with him but I have (at least) four concerns. Can you help?
1) The contract length is one year. That seems WAY too long to be fair to us. I believe 90 days with the option to renew is far better. Since this is a "fill in the blank" part of the contract, I know we can change it, but those buyer agents among you can tell me what length of time is fair to both parties.
2) The contract area is listed as "Western North Carolina." I prefer to put "Brevard and a 20 mile radius around Brevard" as the area. The reason for this is that agents know their areas very well, but perhaps not areas 40 miles away (like Asheville). If we wish to search Asheville, too, we prefer a local agent. Again, this is a "fill in the blank" part of the contract, so I know we can change it - but is it reasonable for us to do so?
3) The contract is "exclusive," meaning he would be our only agent. I assume this means exclusive for the area chosen and the time frame we agree upon. But I do not like anything that ties my hands so much that I am without choice. I prefer a contract that allows us to dismiss him as agent at any time, with a 14 day notice. This would give us some freedom while being reasonable to him. I don't know how to do this or even if we can.
4) The contract says that if the commission from the seller is less than a certain amount (three percent to five percent for the buyer agent), that we, the buyers, will pay it. I will not agree to this. I doubt it would come into play, but it gives too much leeway (is it 3 or 5%) and leaves all control in the hands of the agents.
In short, the contract is extremely one-sided and gives us nothing beyond a promise of service. Performance matters, not talk. If, a week in, we wish to get another agent, we should be allowed to without having to sit on the sidelines for months. To say, as some will, that any good agent won't want to work with people who choose not to work with him and so will cancel such a contract is just another promise. I want it in writing.
In NC, the agents are REQUIRED by law to represent the seller in all transactions unless signed to a contract as a buyer agent. This is a despicable law, forcing people to sign buyer contracts, but it is the law and a reality of buying. So we must have a contract. But it doesn't have to be the one he handed us, unaltered, does it?
1 and 2 are reasonable requests. 3 you should leave alone. 4 ask him to let you know before you see which properties this might be in play. If you like a house and let's pretend it's offering 2.5% to your agent- you can ask the seller to contribute towards your "closing cost" to pay this or you can decide to pay it to your agent at closing. On a $200,000 home we are talking about $1000.
Real Estate is a game, you play to win. He is your partner not an adversary.
1 and 2 are reasonable requests. 3 you should leave alone. 4 ask him to let you know before you see which properties this might be in play. If you like a house and let's pretend it's offering 2.5% to your agent- you can ask the seller to contribute towards your "closing cost" to pay this or you can decide to pay it to your agent at closing. On a $200,000 home we are talking about $1000.
Real Estate is a game, you play to win. He is your partner not an adversary.
This, right here, is what I think a lot of people on here - not so much in actual practice, in my experience - tend to miss as far as their relationship with their agent is concerned.
Hi Guy! Good to hear from you again. I agree that 1 & 2 are reasonable as you indicated. #3, I always write in that the buyer or myself can terminate with written notice. I don't want to lock in a client that does not want to work with me and vice-versa. Typically, there is a section in the agreement to write in other terms like this, don't know if NC has it. #4, I don't understand why there isn't a fixed amount. I specify a fixed minimum % the buyer will cover if not paid by seller.
Of course, this is all from my AZ perspective, and expectations and norms in NC may be different.
I would not sign. I had a verbal agreement to use my agent and only my agent no matter what.
That was enough for both of us until it came time to put in an offer. Then I signed an a basic buyers agent agreement. No way would I have agreed to #4 on your list.
And 90 days is reasonable in terms of length. Anything more is a joke.
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In NC, the agents are REQUIRED by law to represent the seller in all transactions unless signed to a contract as a buyer agent...
Quote:
Originally Posted by NatasNJ
I would not sign. I had a verbal agreement to use my agent and only my agent no matter what.
That was enough for both of us until it came time to put in an offer....
That may not fly in NC. As a buyer, I would not want to work with an agent even before making an offer that was obligated to the seller. That would limit the information and advice the agent could give me.
Real estate laws are state specific. OP says that unless he has a written agreement for a buyers agent - the agent he uses represents the best interests of the seller.
Logic says sign the document. What you don't know will cost you.
3-5% - I am guessing 5% commission or a bonus or a HUD home.
It is reasonable to know before you look at a specific house whether the commission offered is acceptable to the brokerage or not. And if not, you chose how to proceed.
It is reasonable to know before you look at a specific house whether the commission offered is acceptable to the brokerage or not. And if not, you chose how to proceed.
Exactly! I communicated to the agent this morning that if the compensation is less than he (Firm) expects, he will inform us before any offer sheet is signed. That protects us both.
I made the changes as in 1 and 2 of the OP and sent those, too, to the agent.
For 3, I inserted a phrase to indicate that agent is is the exclusive agent only for the time and area specified.
I am the oddball agent who does not go for longer term contracts.
I do not understand it taking a year to buy or sell a property. Longer term contracts imply, by their very nature, a lack of motivation.
If I recall, you are now renting. Not sure if you have a lease or are month to month. If you found the perfect home, tomorrow, are you ready, able and willing to go to contract, right now?
Trust your Agent. I cant speak for all Realtors but a good agent puts in alot to being informed about his or her current market. With that knowledge he or she can aid their clients. It is a buisness an yes we like to help people but it cost to be the best. Myself I attend Town Hall Meetings an Commerce meetings, not to mention veiwing properties everyday an keeping up with the latest Mortgage loan tools an Downpayment assistance programs. We wear many hats. Are questions being answered. Are options being offered. If so you are probably in good hands. Remember though its just as if not more important to shop around for your mortgage tool than the house itself. Be sure to put much effort into looking for the mortgage you will use!! Best of luck with your home search. If your thinking about the East Wake area (East side of Raleigh NC) you know who to talk to.
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