New Investor in Maryland - Are Exclusive contracts good?

[Dan Collier]

Hi everyone! This is my first post. I just finished reading the beginner Bigger Pockets book and I am excited to get started! I own my home free and clear and am now looking to upgrade to a bigger house, and turn my current home into a rental.  I was referred to an agent that is a friend of a friend.  They have asked me to sign an exclusive buyer's contract.  And my question is: is this necessary?  Is this standard practice for buying?  It seems to have overly burdensome items in it, like if we drive by an open house in a new development, we can't even stick our heads in for a peek.  We have to wait for our broker before we can even do an initial visit.  That doesn't sound right to me.  Can someone please help me understand? 

Thanks!

P.S.  I am looking to learn and network with other investors in the area.  I'm still a newbie, but I am a hard worker and eager to learn.

[Stephen Kehoe]

Welcome Dan.

Yes, it is standard practice. No, it is not necessary. 

The agent doesn't want you taking up a lot of his/her time looking at houses and then them not getting paid because you used the selling agent to buy. 

As long as the agent is available to let you into houses when necessary, signing this shouldn't be a problem.

FYI if you plan to turn your next place into an investment also it will be worth using an investment friendly agent. PM me if you need a recommendation.