If I sign with a Realtor as a buyer, am I obligated to use them?

Question

If I sign with a Realtor as a buyer, am I obligated to use them if the house I end up purchasing isn't on the MLS?

Joni Renee · Answer

You are obligated, yes, though I do not show properties to people if they do not sign a Buyer's agreement as it shows they're not committed - and I do not want to commit to them.  When someone signs the BA, I'm full-on finding them a home... we get clear about their criteria and I am able to find them something in a short period (within a week), whereas when they do not sign the BA, I am not able to find them what they want and they eventually wander.

Mindy Jensen · Answer

@Jacob Eddy , read the language in the contract you're signing carefully. It can be amended to say what you want it to say, but only BEFORE you sign it.

If you only want to be obligated to use the agent for deals they bring you on the MLS, then make sure that is reflected in the contract.

If you sign an exclusive agency contract with a buyer's agent, it means they will get paid for any home you buy, even FSBOs. If the FSBO seller isn't willing to pay a commission, then the agent can come to you for it.

This isn't set in stone, all 50 states are different, yada yada but this is a general scenario.

Dawn Brenengen · Answer

@Jacob Eddy Assuming you signed the NC Association of Realtors form, then yes, you owe your buyer agent a commission, even if you buy an off market property.  However, you can make exclusions in the contract before signing it to tailor it to your situation a bit better.

Lucas Machado · Answer

@Jacob Eddy I'm not realtor, but a GOOD realtor, when taking on your property, will do marketing, perhaps arrange showings, e-mail you to update, set-up lockbox, use their marketing network, etc.  I certainly understand a realtor requesting an exclusivity period - why would the agent put effort into marketing your property if you are just going to go off on your own to sell to another person?

You and your realtor are, at least to my mind, working as a team.  Not: let me enter an agreement with my realtor, then make massive efforts on my own to cut the agent out of the commission.

You can learn a lot from a well informed realtor.  I recently listed a large rehab project with a realtor.  She did an amazing job: kept us informed the whole way and managed it from A - Z.  I learned a considerable amount about various financing options, appraisal.

Joni Renee · Answer

You can write in the "additional provisions" that if there is a property NOT found on the MLS that you are not obligated to use them.  Many times I write, "If Buyer is not happy with Agent's services, then Buyer must tell Agent immediately.  If it is unable to get resolved, contract will terminate in 14 days, assuming there is no pending contract."

Mindy Jensen · Answer

@Jacob Eddy , technically, if you are receiving listings from the MLS, it IS the agent who is bringing them to your attention.

They aren't going to call you whenever a house gets listed on the market, they will send an email so you are alerted. You can look at it at your convenience.

And it sounds like you're really hung up on this commission thing. Sellers typically cover the entire commission - it is very rare that a buyer would write a check to their agent.

If this is a first time purchase, you definitely need an experienced agent helping you out. The Colorado contract to buy and sell is 17 pages long (at least last years, was - I don't know how many more clauses they added this year.) and every year it changes, I take an 8-hour class to learn how to properly fill out all the sections.

The agent showing you the house is only the first step. They will keep you on your timeline - which is extremely important - and can recommend things you wouldn't even know to consider.

Jay Hinrichs · Answer

@Jacob Eddy  this really depends on what your looking for.. if its a personal resi or your first investment prop...

price range  etc etc.

where a buyers broker is warranted is when an agent is asked to go find that needle in a haystack or very specific property type.. and generally used on higher end commercial deals that take a lot of time.

if your just looking at some sub 100k rental in rural NC  then probably not necessary  or a SFR for yourself...   Now if you have an agent that is say the go to HUD agent in the area or reps other banks you may want to rethink that to get on HIS buyers list... these are critical contacts and in that situation buyers broker is what you want for sure.. Other wise you will not be feed the best deals like we get and my vendors get who are known buyers in certain markets .  and again this is distressed OREO type proeprties. with those its who you know that's critical....

Jacob Eddy · Answer

All of this is wonderful information and just what I was looking for so, thank you!  Mindy, mentioned only being obligated to the ones the realtor brings to me... Does this mean that if I sign with a realtor, yet I'm the one that finds the house that we like on the MLS, I don't have to pay them the commission?  In other words, I could spell out that I'm only willing to pay them, if they bring the house to my attention first?  Just wanting to clarify...

James Mc Ree · Answer

I wouldn't sign unless the agent is offering consideration, which I don't think they ever do.  The client/customer gains nothing in the agreement and the agent has a locked-in client/customer.

Motivated agents are hungry.  Good agents are smart.  Any agent that demands a contract be signed as a precondition to just showing a property is neither.  There are a lot of agents out there.  Just choose another unless you have a special attachment to this one.

It is reasonable to sign such a contract when submitting an offer.

Gregory Chadwell · Answer

In my state (WI) a buyers agency agreement spells out what is included or excluded for a commission payable during the agreement.  Our's includes fsbo's too.  Read it over carefully.

If I sign with a Realtor as a buyer, am I obligated to use them?

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