Broker Exclusivity Agreements and Investors

[Gabrial Carter]

Hi All -

I was recently in a discussion with a broker about single family investment properties. They'd indicated that they would go to work once an exclusive agreement was signed. I hadn't heard about this before; and was wondering if this is a common thing our if anyone has any insights on this. I had a couple of concerns:

- I've commonly seen advice to work with a few agents if possible, not necessarily for MLA listings but for other leads that individual brokers could generate. This would prevent that I think

- This seems like a cart before the horse situation. I don't think an investor would want to commit to working with an agent until there is a some track record of property transactions

Any thoughts would be appreciated!

[William C.]

the fact this broker is asking you to sign this agreement doesn't make them a bad realtor, in fact it proves they know the business and that their time is valuable and only want to commit to working with buyers who will commit to working with them. With that said, They may not want to work with you if you don't sign, but I don't know that they are the right type of agreement to be made between a broker and investor. For a normal homebuyer, 100% absolutely. I'd convey to them your goals. Let them know you are willing to be a loyal buyer in the event they bring you a deal, or are the result of you finding an investment to purchase. I would have to see the language in the agreement that to know what you cohld and couldn't do. But if you plan on getting your deals from the MLS it shouldn't hold you back next anyway. You should still be allowed to purchase deals that are brought to you off market, but it doesn'sound like you have the type of relationship with other brokers where that would be the case. If they don't understand where you are coming from, find a broker that will.