I signed an exclusivity agreement with a broker when I started looking for houses. Can I break it?

Question

When I signed we verbally agreed I can get out of it if I want. I usually contact him when I find houses online but Im the one always finding the houses to look at. Correct me if I'm wrong but I feel like having him call these agents will end up in me paying more for the house since they are splitting the commissions. Do I have to honor this agreement?

Answer 1

Any house he showed you is off limits if you switch agents. There is this thing called a procurement clause that real estate agents rarely tell you about. If this guy showed you a house, then you decide you want to use another agent to help you buy it, than guess what the agent you first used gets the commission. Obviously no agent is going to touch it because the second agent coming along will end up getting nothing. I went through this myself before I got to know the real estate business. I called an agent from the company that was listing the house. I made an appointment to see it. He showed up 45 minutes late for our appointment. Rushed us through the house and didn't really let us stop and look at anything. It was a mess from start to finish. So, myself and my fiance decided to use an agent from a different company. When I told agent #1 this I got a furious e-mail saying that because he showed me the house that he can hide behind the procurement clause so he still gets paid. It's a way for horrible real estate agents to get paid no matter what. He probably showed a ton of properties that day, and when no one was satisfied they were stuck paying him any way. I ended up not getting the home I wanted because of it. But it was worth it to leave that guy and work with an awesome agent who really was there to help me. So, long story short, if your agent feels burned that he isn't going to get the commission, than guess what, he WILL pull out the procurement clause, and that verbal agreement will be he said, she said. Good luck. Hope this helps a bit.

Answer 2

Do not look at what all is happening there. As you can see they do not want you to look els where do to there commissions. That is there best interest not yours.

It is very apparent that they do not have a listing of all what is for sale, and they may tell you that they have the "inside scoop on some home" As a buyer you want to see what is all for sale.

Do you see how this and all the other brokers have shorted the market and thus drove up prices? This game of not see what is out there for sale has been played over many times and now there is a bubble.

http://www.breakingbubble.com/

This web site tells of other games and shorting of the housing market and why it may be a good time to hold or to deal hard so you can get a fair deal. Also there are several MLS and many hidden homes that they are trying to hide from you.

One day if there is be a fair housing market.All that is needed in a mandatory complete, publicly assessable MLS that is ran by a third party such as the county assessor office.

Then there may be a open honest and transparent housing market.

Answer 3

Usually the seller is the one who pays the commission.
Breaking a written exclusive agency agreement with a broker who has been showing you houses is not a good idea. It is best not to buy a house with another agent until, you resolve this in writing. It is best to not to sign this agreement at all, if you don't intend to stay with the same agent who has been showing you houses. You could end up owing a commission to this agent. This is not the same agreement as the listing commission with agent/seller. A (Buyers agent agreement) may include buyer staying with the realtor with whom he has a written contract. There is a difference... Do not sign unless you understand.

The commission on the home's (sell's price) has already been decided upon by the seller and the listing agent in writing, before the houses are ever showed. The homeowner will have to pay the same commission percentage no matter what price you may end up giving for the house.
(This has nothing to do with an exclusive agency ageement between you and another agent or broker). The seller will only have to pay whatever commission percentage he contracted with the "listing" (agent/broker).

It takes money to advertise and show property. A Real Estate Agent is educated in property values and he knows what your home is worth on todays market. He is worthy of his hire, his knowledge could make a big difference on your overall return of profit. He has to keep up with the housing trends and stay familiar with Real Estate law and updates on continuing education. It helps to be familiar with what is going on in the market. Working with a realtor can provide helpful information for your investments.

Answer 4

yes you can break the exclusive agreement- but WHY? By your agent contacting and representing you you actually stand a very good chance of getting the house for LESS. The house for sale is under CONTRACT meaning the price is SET. Just because there are commissions involved is NO reason to let the Realtor go. The seller is paying the commissions and your agent is negotiating in and on YOUR behalf.

Answer 5

Guy,
You can brake the contract with your Realtor, it has to be documented. Even though it really is at no cost to you, there is a chance that he or she still may get paid from your purchase if he or she was the original Realtor that introduced to you the property that you purchased. Having a Realtor represent you is not a cost to you as far as I know, here in Florida the Seller is the one that pays for the commission out of his proceeds. The only thing that you might get charged is for a processing fee, which usually is anywhere from 250 to 500, it shouldn't be more than that. Hope that I helped you a bit. Oh, by the way, if you are the one searching for the house... than your Realtor is not doing his or her job.

Answer 6

Verbal means nothing , it is what is in writing that holds true, and yes it will cost you more , Agents today are worse about trying to hoo doo people than the dayum back alley crackheads .... when he comes up with something to look at or for you to purchase , keep acting like you can not afford it , after all when they figure out your debit ratio to see how much you can afford to pay the rate is normally inflated to make you feel confident about your purchasing ability , but there are so many now realizing they can not afford it after the purchase , because they did not allow for unexpected bills , and or savings , the agents really do not care if you can afford it or not , as long as they get their money , they remind me so much of crackheads , talk to a real estate attorney , most of the time such contract have an expiration of 60 , 90 days etc.. it is not a life time contract , just kind of turn the nose up at what he shows you until you consult the attorney , most lawyers will not charge you to talk to you about this ,and most are willing to give you the answer....

Answer 7

Hello, that is there job and remember the seller pays this commission not you if it is listed with a Realtor, they will split the commission. Don't worry, if your Realtor has shown you a property and you close on that home with another Realtor than you would have issues. Keep calling him unless you have a breakdown in communication then change for his lack of response. good luck

Answer 8

No you will not pay more for the house. If you're looking for houses on line then you are probably finding outdated homes and your pissing your realtor off making him/her do the wild goose chase. He/she has the most current listings on the MLS. Aside of you driving around and going into an open house or finding a For Sale By Owner, your realtor is on top of it.

Don't burn the realtor who is working on commission for you.

Answer 9

i'm guessing you're no longer at present in a financial subject the place you will detect a clean place to hire and pay a down fee on or you will possibly have talked on your landlord approximately this already. better than probable your landlord forgot it became a quick term hire and is questioning it became a a million year settlement on account that that's what he/she in all risk many times signs and symptoms. Take your hire settlement on your landlord and confer with him. tell him which you found out that the hire is up and you're searching for a clean place to hire commencing next month. you extremely would desire to have carried out this in February. Why did you wait? you ought to prefer to resume your hire for yet another 6 months which might in basic terms tie you in for yet another 3 months on account which you have already had 3 months previous your first hire. Your landlord should be on genuine of those issues. at present you're no longer decrease than settlement and in all risk do no longer even would desire to furnish word of emptiness apart from easy curtosy. for the time of January your land lord would desire to have approached you approximately your upcoming hire expiration yet you're only as to blame on account which you of course knew the hire became going to run out quickly and did no longer physique of concepts your land lord. confer with the land lord and artwork some thing out. look for a clean place speedy. if your land lord would not have every physique wanting to hire the placement quickly he would settle for a greater low-value hire fee untill he can locate an occupant. it incredibly is greater advantageous for him to make a million/2 of what he's making now than no longer something in any respect.

Answer 10

You wont pay more then you offer when you find what you like. The seller pays the commission..not the buyer.