Fire my buyers agent?

Question

Hey BP, would love some insight.

I’m new to real estate investing (currently looking for my first deal in Kansas City) and the agent I’ve been looking at homes with doesn’t know anything about investing. He has shown me a handful of properties but it’s pretty much just open the door and that’s it. I was setup with him through Zillow. I went to my first investment meeting on Saturday and was introduced to an agent who is an investor himself and works with investors. Do I let go of my current agent and go with someone new? Or keep looking? I ask this because my current agent just sent me paperwork to lock me into representing me for any property I buy, even off market or from a wholesaler. I feel bad for letting him go after already using their portal and having him show me a few properties. I want to do the most ethical thing, and I also want to do what is best for my business. Thanks for any insight.

Leah Stuever · Answer

Dont sign that. A good agent (like me) doesnt use those. He knows he sucks and is trying to force you into working with him.

Politely decline and tell him it isnt working out. Just leave it at that and find an agent that works better for you.

Frank Wong · Answer

Hi Noah,

There is nothing wrong with switching agents. If the new agent provides you with what you need then move on.

Saying only a bad agent will make a client sign an exclusive contract is false.  Sometimes a new buyer can be fickle and jump from agent to agent. An agent that respects their own time will ask for an exclusive agreement.  The agent commits to you and you commit to the agent.

Logan Freeman · Answer

@Noah Gouldsmith I represented buyers on over 120 transactions last year and had 0 exclusive agency agreements. If he is confident in his abilities and has brought you enough value - you wouldn't have posted in these forums. Do not feel bad about "firing" the agent.  Just politely say I am not interested in signing that type of agreement. I agree with @Frank Wong as well - I DO have exclusive agreements with some of my clients because the transaction size is over 1MM and they have asked me to be their fiduciary.

Robin Hunter · Answer

I have a couple investors who have reached out to me with that same issue. They have an agent they've been working with but they are not really finding proper investment opportunities. What I will say is that I won't make them sign an exclusive agreement with me until we are making an offer. But then I trust that buyer to be ethical and not turn around and take the property that I introduced him to and have the other agent transact the deal. I know a lot of investors don't like to sign exclusive agreements because you never know where the next good deal is going to come from. If you're open and honest with your first agent and let them know the situation, that you'll work with whichever agent brings you the right deal, maybe they will put in more effort to learning what actually makes a deal work for you.

However, going off of what @Nathan Roberts said, if I know you're exclusively working with me, I will work harder to find you a deal over those who will just take a deal from whoever brings it. Working without exclusivity is a risk to the agent, even if I trust that you aren't going to go behind my back and work the deal with someone else.

Jacob Sampson · Answer

My agent and her husband used to own a construction company and also she owns rental properties.  That experience has been incredibly valuable to me.  As an investor, if you are going to use and agent, you need one that understands investment property.

The caveat being, if your agent invests themselves then what stops them from scooping up all the best properties and sending you all the second best.  In my case, I just had a discussion with my agent and we agreed that she would give me first chance at any property she was going to offer on.  It's never been an issue because we shop in different areas, but that is an example of an agent I can't afford to be without.

Kanwar Sodhi · Answer

If you have a contract with the first agent, don't JUST break it because you have a new one. You can get sued.

Talk to them and let them know it's not working -> don't burn bridges

Nathan Roberts · Answer

Hi @Noah Gouldsmith,

I think @Frank Wong said it perfectly! If your agent doesn't satisfy your needs and also knows little to nothing about real estate investing, you need to find someone that works best for your particular situation. I'm sure you may feel bad about wanting to let him go but he has the potential to cost you money down the line. If this happens, you will be regretting you didn't let him go sooner. Also, great agents are going to make their clients sign an Exclusive Buyer Agency Contract. This will allow for both the agent and the client to mutually respect each other's time. All agents will work harder for their clients who sign an exclusive agency contract over a client that signs a non-exclusive or no contract at all. I hope this helps you out Noah!

Lien Vuong · Answer

Find the agent that will fit your goals the best. Contract or no contract it looks like he is not fulfilling your needs and you should probably move on to one that has your specific metrics in mind.

Dan Krupa · Answer

@Noah Gouldsmith if you signed an agreement, cancel it. I am a broker with agents. Primarily I use my license for our flipping business and to buy rentals.  98% of RE agents are clueless when it comes to investing. Good ones can get you an ARV/comp it and give you a few recommendations. But you need an investor agent. Who understands rehab numbers, has a network of contractors who work with investors and not home owners, and understand your goals and can help guide you. If you aren't getting those things then they aren't earn their 3%. Find a new agent. PM me if you have questions.

Lynn McGeein · Answer

I've had agents ask me to sign where they list the specific property they've physically shown me, and I am fine with that.  If you're putting an offer in, it is usually mandatory, at least in our state, for a buyer's agent to have a buyer-signed document declaring representation, so I have to have them sign a buyer broker agreement before writing an offer, but it is non-exclusive.  I never make my clients sign an exclusive agreement as I, myself, would never sign one.

Fire my buyers agent?

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