Should I Sign An Exclusive Buyer Agreement w RE Agent?

Question

I've been talking to a RE agent who wants me to sign an exclusive buyers rep agreement with them. Good idea? Bad idea? Thoughts?

Chris Mason · Answer

Most realtors that are confident/competent in their ability to deliver a high level of service, information, etc, from start to close do not feel the need to ask folks to sign these.

Most homebuyers are also reasonable/intelligent enough to know that if their realtor spends a large amount of time on them and does their job well, switching realtors at the last second is a total dick move.

I've seen little old lady homebuying cases wherein it takes the realtor a year to sell her a house she likes, and no exclusive agreement is signed. I have in fact also seen cases where a realtor invests countless hours in a homebuyer, only to be cut out at the last minute by someone trying to bribe a listing agent by letting them double-end it (...and then they want me to step up and do realtor stuff. Nope. You f-d your realtor, you're not going to F me too by roping me into doing things that I'm not licensed to do).

So it's a two-way street. Have you given your relator any reason to believe you might cut him out at the last minute after he's spent a lot of time on you? Have you said anything indicating that you think realtors are over-paid, a waste of time, etc? I'm not a realtor, but those are the sorts of things that would make me want to have someone sign exclusive buyer's representation agreements prior to me spending time on them.

Time is the most valuable commodity a realtor has. Ultimately time that is what these agreements are about.

Lynn McGeein · Answer

I would never sign a blanket exclusive buyer broker agreement.  I will sign one that lists the exact properties the agent showed me and that any offers for those specific properties are with them as buyer broker.   I will walk away from any agent who wants a blanket buyer broker agreement.   If you find a FSBO that they won't show you or the agent isn't any good, you are still obligated to pay them?  No, thanks.

Jake Thomas · Answer

@Jesse Danzig as a Realtor I don't make any clients sign exclusive agreements. I don't feel either party should be obligated to the other if they don't feel the relationship working out. If you get into the process of looking and realize this agent doesn't have time to show you houses now what? You have to get a mutual release agreement signed by both parties and sometimes the broker. It's easier to quit your W2 job and file for unemployment ( btw don't do that yet) than get the deadbeat agent to release you. If they won't work with you because you won't sign then they truly are not a good agent and you should keep looking.

Jesse Danzig · Answer

thanks everyone for the advice, very helpful!

Assaf Furman · Answer

@Jesse Danzig Everyone that commented here are correct about working with a realtor who's good for you, and an exclusive agreement (or the lack thereof) shouldn't impede on their ability to help you.

I'm not a realtor and I don't plan to be one, but here's how it looks like from their side: I'm working hard trying to find the right property for my buyer, going back and forth on opportunities only to put a bid that's too low to even to be considered, spending a lot of my time with them not knowing when my payday will come. Point being, if you had the right type of exclusivity with them they would keep going forward knowing that this time-intensive process would pay off. If it doesn't work well, they would be the ones to offer a termination.

Bryan O. · Answer

When looking for an investment property I would NEVER sign an exclusive agreement.

If you are looking for a primary residence, then it depends on what you are after. A crap agent doesn't do much more than make an MLS search for you, but a good one will constantly be looking, working their network, etc. For a good agent, I would sign because they are worth it. For the other 99% I wouldn't bother.

Should I Sign An Exclusive Buyer Agreement w RE Agent?

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