Should I sign a exclusive deal with the RE AGRNT

Question

￼￼I’m a new investor starting the process to purchase properties but a agent wants to sign a exclusively deal should i

Russell Brazil · Answer

Just be aware that many top agents wont work with your otherwise.  Why spend countless hours working hard for someone if they may in the end screw you and use another agent to buy.

Austin Steed · Answer

@Damein White in residential/owner occ RE things are usually more emotional. And I see Exclusives more often in residential RE not REI. This may mean you're working with more of a residential agent, not guaranteed though!

Remington Lyman · Answer

I think that depends on the agent. Here in Columbus, Ohio I make my clients sign if I have to leave my office to do work for them. If I can write offers while sitting in my office then I do not make them sign. I do not want investors to be required to get deals from one source.

Steven Foster Wilson · Answer

What is a RE AGRNT?

Just kidding, an exclusive just means that you will only use him to purchase a property. To me that sounds lazy, I never have my clients send an exclusive because I know that I am going to be the best agent they will work with and I am going to bring them the best deals. Why would I need a paper saying they won't use others when I am clearly the best choice.

Just a thought, not sure where youre looking, but here in Columbus it can be pretty competitive.

Chance B. · Answer

Thank you Emily, I have received tons of amazing feedback from everybody including the new post I made since this one was a little older.

Steve K. · Answer

Trust is a two-way street. If you're a serious buyer, have found a great agent you want to work with, and would like that agent to take you seriously, then sign the exclusive so they know they'll be compensated for their efforts. If you want to work with several different agents, shop around, maybe roll the dice by going straight to the listing agent if you find a deal on your own, etc. then don't sign it. Agents probably won't work as hard for you without an exclusive though.

If I'm just meeting a client, showing them one or two properties while getting to know them, still feeling out whether or not we're a good fit in terms of working together, I won't ask for one. But if it gets to a point where I'm clearly working for a client, I definitely like to have one.  My broker requires me to have an exclusive signed before writing any offers, so at the very least I get one signed then. In general, if a client doesn't want to sign an exclusive, I'll be less likely to work as hard for them as I would if I knew I was going to be paid for that work. Nobody wants to work for free.

Steve Morris · Answer

'm a new investor starting the process to purchase properties but a agent wants to sign a exclusively deal should i

NO - If it's a buyer representation.  Once they get it, they get a commission if they do nothing or bust their butts as long as you buy.

Klint Ruud · Answer

Hey Damein, I'm not sure at what stage you are in your buying/selling process or if you are looking into retail or wholesale real estate... But if you have already found a retail property and would just like to have an agent represent you for just that one deal, I don't think it would be necessary... If you need someone to help you find property then it is pretty standard to sign an exclusive agreement. The seller is paying your agents commission... so it is free representation for you. If you are looking into wholesale, I would encourage you to have an agent that you have an agreement with to run comps on properties for a fee but it is not necessary for to have representation when coming to the closing table. It is also likely that you will be paying their commission. Now if you are looking for an agent to LIST a property, being that inventory is so low you may have to sign an exclusive agreement BUT I would absolutely encourage you to negotiate the commission. It could save you money on the back end if you fix and flip homes.

Joe Villeneuve · Answer

Not in this century or the next 5.  If one asks you to, walk away...but on your way down the road, ask them if they would be willing to sign an exclusive agreement with you that says they will only sell your homes

Emily Howlett · Answer

@Chance B. - Yes, typically the seller pays for the buyer agent's commission, but that's not always the case. If you fall into that category of "the seller won't pay that part of the commission", then yes, you as the buyer will be responsible. That said, you can negotiate the final number that goes into the contract before you sign. As for the recording without your permission, my initial take on it is that some homes that you tour will have security systems recording you and they don't always disclose that. That said, you can ask the agent. Short version: that part doesn't sound fishy, but ask more questions to see what the deal is.

Should I sign a exclusive deal with the RE AGRNT

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