Should we sign a realtor agreement?

Question

We have been working with a realtor for the past 6 months... she had been assisting us in our search for a home. Recently, she has asked us to sign an agreement with her. It states that if we purchase a home... she's our realtor for that transaction, no matter how the home was found. Our question is... should we sign an agreement like that? Does it help us in any way? Do most buyers realtors ask their clients to sign an agreement with them?

Thanks in advance for any advice! :)

Answer 1

That's a standard clause under an EXCLUSIVE LISTING (sales) agreement. But NOT a search (purchase) agreement.

You don't HAVE to sign it. It's your choice. I would strongly suggest against it. She is trying to guarantee herself a commission even if a better agent shows you something you like. She seems more interested in benefitting herself than you.

Dump her.

Answer 2

I always use buyer agency agreements. If a customer won't sign one, I send them to work with someone else. Sounds harsh ? Yes, it IS a bit harsh, but the reason that I do it is that, under my state law, I must represent the SELLER unless the buyer client signs such an agency agreement.

The same situation may exist where you are. If it does, you will gain a far more honest opinion from your agent, including information about values, and so forth.

Ask the agent about the need for the agreement and why it would benefit you. I venture that you will hear what I have just told you.

Handymam (above) has incorrect information. While a buyer is technically responsible to pay the buyer agent commission, in most cases the buyer agent will accept the commission split offered by the listing agent. In fact, I put this proviso into my buyer agency contracts. You're not going to save a penny by representing yourself, since the commission structure is determined by the LISTING agent, who will gladly keep the entire commission for him/herself if you elect to represent yourself.

Answer 3

NO.

Read this:

http://www.longislandbubble.com/sheeplesguide.html#buyers_agent

If after this you choose to use her, tell her she can keep your business by continuing to do good business for you. We are in a buyer's market and you as a buyer (read the rest of that site before buying since it is NOT a good time to buy unless you have money to lose) anyways, YOU, as a buyer, are an extremely RARE commodity!

Don't be sucked into the misnomer that the seller pays for a buyer's agent's commission either. A Buyer pays the commission! If you represented yourself OR used a discount brokerage agent (found at ziprealty.com and other places like that) you could then offer even less for a house since the seller wouldn't see that commission coming off his/her profits.

I would read all of the info offered on this page and the links too:
http://www.longislandbubble.com/sheeplesguide.html


Read the links and you will be much more savy about how the real estate industry works. Best of luck!

Answer 4

The agent is protecting herself, as an agent I would and do have my clients sign an agreement. If you have used her for a 6 month period and she has performed for you then it is ethical and honest for you to sign. Handyman does NOT have the correct information so please discount what he has to say- it is INCORRECT.

Answer 5

We have purchased and sold eight properties and never signed one of those. If you like and trust her, go ahead. I don't see how it really hurts you, but I REALLY don't see how it helps you. Realtors are hurting these days after flying high during the boom. She is protecting herself.