"Exclusive Right to Work-With Agreement" question

[Mike Bonadies]

Hi fellow BiggerPocket colleagues! 

I'm very new to real-estate investing and I have a question about Real-Estate Agents and "Exclusive Right to Work-With Agreements."

The other day I met with a Real-Estate broker in Baltimore to discuss possible working with them to help me find a Multi-family house for me to personally live in and rent out the other unit. Right off the bat they bought up that I would need to sign an "Exclusive Right to Work-With Agreement" and pay a broker fee of $345 before they could get me any "in-depth" information about potential houses. I said I would think about it but I still wanted to know more about them before proceeding. They gave me a decent run down, but I wasn't 100% sold on their enthusiasm. They sent me an email with the agreement in it and in this agreement it essentially outlines that I am giving the broker the exclusive right to work with me for one year.

This all seemed a little off because I have been working real estate agents in NJ and I haven't been asked to sign any agreements or pay any brokers fee's up front - but at the same time I had built relationships with all of the agents.

Are Exclusive Right to Work-with agreement common?

If I sign it am I unable to work with any other real-estate professionals?

If I sign it and it bars me from working with others will it also bar my LLC as well?

In the DMV tri-state area what is the market rate brokers fee I should be prepared to pay?

Are these agreements only good for one state or do they have a larger reach?

I welcome any professionals help!

Best,

Mike Bonadies

[Ned Carey]

@Mike Bonadies I have never signed an exclusive buyers agent agreement.  I have also never heard of a fee just to work with you. 

What might be acceptable to me is to sign an agreement that I will only work with one agent. But I would insist can be terminated at any time without penalty. I might also agree to a clause that says the agent is due a commission if I purchase a property where he was the "Procuring Cause" for 60 days after the agreement ends. 

Personally I would be a smart *** and say "Hmm, $345 fee, OK because I normally charge a $400 application and reference check, for for people who want to be my agent. I'll credit you the $345 and it will only cost you $55 to be my agent.