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- Jessica Foote, "jessicafoote"
- Contributions:9
Hi SoCal Engr, SURE!
It's all about transparency these days. You can find the agreement on my blog. Make sure to take a peek at my recent post "why you shouldn't cheat on your Realtor". It explains why I recommend making a commitment to one agent. Click here to see the agreement and post referenced: http://jessicafoote.posterous.com/.
Back to the representation agreement - It's not about commission for me, it's about declaring on paper that I am working for my client and that my client is committed to me. It's a proper way to do business, especially when you have an agent who has committed to a set of Broker Duties, Responsibilities, and a clear scope.
Quite honestly, you probably have run into agents desparate for commission who are improperly using the document. It's a standard California Association of Realtors contract.
Here's an additional point of transparency - in almost every standard transaction a buyer's agent is paid by the seller's commission paid to the listing agent. The only item that is out of pocket for a buyer (which is always negotiable) is a low fee that could include a transaction coordinator or flat fee.
All the best!
Jessica Foote
It's all about transparency these days. You can find the agreement on my blog. Make sure to take a peek at my recent post "why you shouldn't cheat on your Realtor". It explains why I recommend making a commitment to one agent. Click here to see the agreement and post referenced: http://jessicafoote.posterous.com/.
Back to the representation agreement - It's not about commission for me, it's about declaring on paper that I am working for my client and that my client is committed to me. It's a proper way to do business, especially when you have an agent who has committed to a set of Broker Duties, Responsibilities, and a clear scope.
Quite honestly, you probably have run into agents desparate for commission who are improperly using the document. It's a standard California Association of Realtors contract.
Here's an additional point of transparency - in almost every standard transaction a buyer's agent is paid by the seller's commission paid to the listing agent. The only item that is out of pocket for a buyer (which is always negotiable) is a low fee that could include a transaction coordinator or flat fee.
All the best!
Jessica Foote
- SoCal_Engr
- Contributions:5399
@Jessica...
Thanks for sharing.
@Others...
If you follow the link, the document doesn't show on the initial load. However, if you click on "download" it will open in a new window.
Thanks for sharing.
@Others...
If you follow the link, the document doesn't show on the initial load. However, if you click on "download" it will open in a new window.
- Jessica Foote, "jessicafoote"
- Contributions:9
@SoCalEngr - you are most welcome. Make it a GREAT day!
- hpvanc
- Contributions:2296
FYI, I cannot read the 1st page.
I was hoping that Socal would read it and make comments first but here are my observations. There are numerous clauses that I would have to discuss with the agent and possibly modify before signing this agreement. However there is something that jumps off the contract and tells me that I would be better off going unrepresented than agreeing to the services of a Buyers Agent that uses this contract as currently written. The issue is the in the first two sentences of Section 8.A.
"Buyer agrees to timely view and consider properties selected by Broker and to negotiate in good faith to acquire a property. Buyer further agrees to act in good faith toward the completion of any Property Contract entered into in furtherance of this Agreement."
Even if the clause is unenforceable, which I suspect it is, I would not sign an agreement with someone who has the arrogance to represent themselves as a buyers representative and still expect their represented to sign a document that included a clause like that.
I was hoping that Socal would read it and make comments first but here are my observations. There are numerous clauses that I would have to discuss with the agent and possibly modify before signing this agreement. However there is something that jumps off the contract and tells me that I would be better off going unrepresented than agreeing to the services of a Buyers Agent that uses this contract as currently written. The issue is the in the first two sentences of Section 8.A.
"Buyer agrees to timely view and consider properties selected by Broker and to negotiate in good faith to acquire a property. Buyer further agrees to act in good faith toward the completion of any Property Contract entered into in furtherance of this Agreement."
Even if the clause is unenforceable, which I suspect it is, I would not sign an agreement with someone who has the arrogance to represent themselves as a buyers representative and still expect their represented to sign a document that included a clause like that.
- Jessica Foote, "jessicafoote"
- Contributions:9
If one was truly in the market to buy a home and had selected an agent to work with, why would they not agree to view and consider any properties that a broker selected to show a buyer? In theory, you could take a peek at a listing sent over and then say no... It's not about arrogance, it's about committing as a buyer to act in good faith. As a real estate professional, if my client refused to sign this document based on aforementioned clause, I would be concerned. Just as I act in good faith, I would hope for the reciprocal from my buyers... Just my thoughts!
Ok, this has been fun and in the spirit of transparency, I'm going to drop off this post now to spend time with my family. Although I am a devoted Realtor and take care of my clients, I have two young sons and an amazing husband that I enjoy - which is why I only work with buyers who show "good faith". ;)
I hope you both have an AMAZING weekend.
All the best!
Jessica
- Michael Helton
- Contributions:456
For Nevada, agents are supposed to give this disclosure form to each client. I walks through the multiple disclosures and forms which should be covered. Pay attention to the section called "Duties Owed By Nevada Real Estate Licensee."
http://red.state.nv.us/forms/525.pdf
There is also the Consent to Act form:
http://red.state.nv.us/forms/524.pdf
http://red.state.nv.us/forms/525.pdf
There is also the Consent to Act form:
http://red.state.nv.us/forms/524.pdf
- Michael Helton
- Contributions:456
As far as the contract, I like the idea of protecting the commission of the agent from unscrupulous buyers as well as protecting buyers.
However, I never have (nor will I ever) sign a contract locking me in past the time of service with an agent. I would also reserve the right to negotiate the commission.
However, I never have (nor will I ever) sign a contract locking me in past the time of service with an agent. I would also reserve the right to negotiate the commission.
- derek zasaretti, "Derek_Zasaretti"
- Contributions:261
Personally , I do not believe in binding a person to an agreement longer than necessary. The agreement is binding on both parts. So lets say the buyer and I aren't getting along. Why tie them down for 3 months extra. Sometimes extensions are needed so closings do not always happen when they are suppose to. And also sometimes it can take longer to find a house.
There is a lot of research time and costs with taking a person out looking , printing property info, gas etc.
There is a lot of research time and costs with taking a person out looking , printing property info, gas etc.
- SoCal_Engr
- Contributions:5399
Just FYI...
I asked REAs to post their forms for us to look at. Not much reason to post if it's just an invite to get picked apart. While I generally don't believe the forms protect the consumer, I really want to see enough to try and find one that looks good - not to pick apart the oens I don't like.
Sometimes, we're all just a little too ready to challenge - myself included.
I asked REAs to post their forms for us to look at. Not much reason to post if it's just an invite to get picked apart. While I generally don't believe the forms protect the consumer, I really want to see enough to try and find one that looks good - not to pick apart the oens I don't like.
Sometimes, we're all just a little too ready to challenge - myself included.
- Roberto Ribas, "azrob"
- Contributions:10246
Arizona buyer broker exclusive employment
I'm going to give a bit of my own opinion. I'm not going to waste my time showing $50K homes to someone month after month, and writing the often dozens of offers needed to get a deal in our fast market here, if they don't trust me enough to agree to work with just me. And seller picking other higher offers hardly counts as a failure by me, which I would say is 95% of the time the buyers reason to be angered.
I'm going to give a bit of my own opinion. I'm not going to waste my time showing $50K homes to someone month after month, and writing the often dozens of offers needed to get a deal in our fast market here, if they don't trust me enough to agree to work with just me. And seller picking other higher offers hardly counts as a failure by me, which I would say is 95% of the time the buyers reason to be angered.
- Dan, "the_country_hick"
- Contributions:4419
Jessica, "If one was truly in the market to buy a home and had selected an agent to work with, why would they not agree to view and consider any properties that a broker selected to show a buyer?"
Do not assume that every property a broker suggests is one the buyer would like. As a buyer I might reject many houses a broker suggests for reasons I consider to be solid.
Maybe the house is purple with pink polka dots and it has overgrown shrubs. There is nothing really wrong but it does not fit my style. Maybe I see the neighborhood it is in and refuse to even drive there. Maybe the house is not what I want. There is no way to say that a broker will show me what I want and not show me houses I would never accept.
Besides, I do NOT want the broker sending me their idea of houses that fit what I want. I will get my own from realtor.com and potentially other sites so I can see all the houses for sale. That will include the houses that only offer a 2% commission that the broker might never show me.
The paragraph should state that the broker will show me all of the properties I bring to them that are for sale. I am under no obligation to look at every house a broker chooses for me. If anyone thinks otherwise we will be going separate ways. I may reject 100 listings outright then see one that gets me to move fast. Do not hurry me. I will move when things work right for me. It is about my timetable not yours.
Do not assume that every property a broker suggests is one the buyer would like. As a buyer I might reject many houses a broker suggests for reasons I consider to be solid.
Maybe the house is purple with pink polka dots and it has overgrown shrubs. There is nothing really wrong but it does not fit my style. Maybe I see the neighborhood it is in and refuse to even drive there. Maybe the house is not what I want. There is no way to say that a broker will show me what I want and not show me houses I would never accept.
Besides, I do NOT want the broker sending me their idea of houses that fit what I want. I will get my own from realtor.com and potentially other sites so I can see all the houses for sale. That will include the houses that only offer a 2% commission that the broker might never show me.
The paragraph should state that the broker will show me all of the properties I bring to them that are for sale. I am under no obligation to look at every house a broker chooses for me. If anyone thinks otherwise we will be going separate ways. I may reject 100 listings outright then see one that gets me to move fast. Do not hurry me. I will move when things work right for me. It is about my timetable not yours.
- shasta_steve
- Contributions:448
I understand that many times realtors get screwed over and I also understand Roberto's position but I still never will ever sign one. I have bought four houses in California and have never once been even asked to do it. Trust is a two way street. The realtor has to trust me to stick with him and I have to trust him to do a good job for me. In reading Jessica's papers there are just too many things that could come back to bite me. First and foremost is the guaranteed 3% when many houses are only offering 5% total. With a 200k house I could very easily end up owing my agent $1625 just to close the deal.
I also want the ability to buy a FSBO, if the opportunity presents itself, and not have to end up paying the whole 3% myself.
Look I understand why an agent would try and protect themselves but, here in California anyway, there are tons who will not ask you to sign one. I just don't see how it would help me and in the end it is just business. I will never sign one unless every agent out there requires it. Just too much liability for no benefit.
I also want the ability to buy a FSBO, if the opportunity presents itself, and not have to end up paying the whole 3% myself.
Look I understand why an agent would try and protect themselves but, here in California anyway, there are tons who will not ask you to sign one. I just don't see how it would help me and in the end it is just business. I will never sign one unless every agent out there requires it. Just too much liability for no benefit.
- Roberto Ribas, "azrob"
- Contributions:10246
Shasta: some people I read as trustworthy, and I don't have sign a buyer broker agreement. Others you can tell will waste tons of your time, then get a friend to write up the deal for a discount at the end of the day...
- sunnyview
- Contributions:24167
I understand your argument Rob and I feel that it is valid in the scenario that you present. The problem I have is agents that ask for a buyers agreement right out of the gate without having done anything for the buyer, without knowing the buyer at all and who still feel entitled to a clients first born child and a guaranteed commission for the next 12 months just for sending sending one MLS list by email.
When I bought my first house, the first agent I had asked me to sign one after about a week, I declined. She was not listening to the neighborhoods that I wanted and kept sending me listings from starter neighborhoods with marginal schools 15-20 minutes from my target city. I took the MLS emails she sent and drove neighborhoods on my own. After a month of not asking to see any houses inside from listings that she sent, she pressed me again to sign an agreement. I thanked her for the emails, told her that she didn't not have a good idea of what I was looking for and I did not want to waste her time when she was not listening to what I wanted to see as a buyer. We parted ways without her showing me one house.
Personally, I have never signed a buyers representation agreement, but there are agents that I would feel comfortable signing one with for set term with clear goals. It is all about the agent in my book. If I am not sure about their smarts, professionalism and track record upfront, I'm sure not getting legally married to them without further proof, but I will not waste their time showing me properties week after week either. It's about respect and trust. In my book, that's something that is earned not signed away to anyone with a license. I have met many agents on Zillow that I would consider signing with because I have seen their track record over time, but most clients do not have the advantage of knowing their agent when they are presented with a buyers agreement.
When I bought my first house, the first agent I had asked me to sign one after about a week, I declined. She was not listening to the neighborhoods that I wanted and kept sending me listings from starter neighborhoods with marginal schools 15-20 minutes from my target city. I took the MLS emails she sent and drove neighborhoods on my own. After a month of not asking to see any houses inside from listings that she sent, she pressed me again to sign an agreement. I thanked her for the emails, told her that she didn't not have a good idea of what I was looking for and I did not want to waste her time when she was not listening to what I wanted to see as a buyer. We parted ways without her showing me one house.
Personally, I have never signed a buyers representation agreement, but there are agents that I would feel comfortable signing one with for set term with clear goals. It is all about the agent in my book. If I am not sure about their smarts, professionalism and track record upfront, I'm sure not getting legally married to them without further proof, but I will not waste their time showing me properties week after week either. It's about respect and trust. In my book, that's something that is earned not signed away to anyone with a license. I have met many agents on Zillow that I would consider signing with because I have seen their track record over time, but most clients do not have the advantage of knowing their agent when they are presented with a buyers agreement.
- hpvanc
- Contributions:2296
Since I am the type that would not subject myself to the chore of shopping and the irritation of dealing with an agent if I did not intend to buy, if I am talking to an agent to look at something I am in the market. What I resented so much about the CA contract was that it has a clause that attempts to obligate me to buy if the agent can send me listings within my price range.
It would definitely depend on the agent, if I were working with the type of agent that had someway earned my trust through their actions (not talk) over time, then I would be willing to sign an agreement with them. Of course if they had earned that level of trust I would still prefer to pay them a retainer for their services and have the full commission rebated or negotiated out of the contract when I bought.
It would definitely depend on the agent, if I were working with the type of agent that had someway earned my trust through their actions (not talk) over time, then I would be willing to sign an agreement with them. Of course if they had earned that level of trust I would still prefer to pay them a retainer for their services and have the full commission rebated or negotiated out of the contract when I bought.
- SoCal_Engr
- Contributions:5399
@Hpvanc...
"What I resented so much about the CA contract was that it has a clause that attempts to obligate me to buy if the agent can send me listings within my price range."
Can you point me to that clause? Maybe by para/clause number? Not sure if cut-and-paste may violate any copyright.
"What I resented so much about the CA contract was that it has a clause that attempts to obligate me to buy if the agent can send me listings within my price range."
Can you point me to that clause? Maybe by para/clause number? Not sure if cut-and-paste may violate any copyright.
- hpvanc
- Contributions:2296
8.A. Seems to allow the agent to contractually pressure the buyer to consider and pursue properties selected by the agent within the price range in paragraph 4. While it uses the phrase "good faith" an agent could attempt to force a buyer to buy even if properties do not meet their needs and seems to preclude the buyer upon learning more about the market a contractual ability to withdraw from the search and pursuit of a purchase agreement for the term of the contract.
I seriously doubt that it would be enforceable as I am interpreting it, but I still would not sign it.
I seriously doubt that it would be enforceable as I am interpreting it, but I still would not sign it.
- SteadyState
- Contributions:763
The document does not appear to be assessable on Windows 7 with either IE (9.0) and Firefox (5.0). Can people still download/read this document?
At any rate based on the comments this particular agreement does not appear to be "buyer friendly".
At any rate based on the comments this particular agreement does not appear to be "buyer friendly".
- Pasadenan
- Contributions:20384
I wouldn't sign that contract regardless. It needs such major revisions in most paragraphs, that I would insist on starting from scratch.
But the biggest issues to me are the invasion of privacy issues. The agent and broker have absolutely no right of any kind for any information about my finances except the letter of qualification from my lender.
And that paragraph about fees is supposed to say that they will rebate the fees to me, not that I will pay them a minimum of 3% plus $625 regardless.
As for services?
1) I don't want them searching for me
2) I don't want them "pre-screening" for me
3) I don't want them "negotiating" for me
4) I don't want them doing any finance coordination for me
5) I don't want them providing any list of vendors to me
6) I don't want them providing any "guidance" to me regardless if they think it is "professional" or not
7) I don't want them to do a credit check as that is done by the my lender's underwriter.
8) I don't want them ordering reports
9) I don't want them acting as a middle man for all communications and disclosures, even though there likely is no way to avoid that.
10) I don't want them interpreting disclosures nor reports.
The only things I want them to do are:
1) schedule access to let me and my inspectors in at times convenient to me and my agents.
2) Use of their lockbox code to let me and my inspectors in
3) Be on time to site visits to let me and my inspectors in
4) Write what I want on the offers and counter offers; no feedback and not objections.
5) Submit my offers and counter offers within 24 hours of the time I contact my agent about making the offer or counter offer, and pay me $300 per day penalties for being late or unavailable.
6) Provide CMA's for properties I ask to see, with a minimum of 8 comparables for each, with detailed line item adjustments for each comparable.
7) Preliminary title check to make sure I'm not on some wild goose chase for a property that cannot be sold.
8) Provide an alternate in the office for offer submittals and property access if the agent will be unavailable in the required time frame.
But the biggest issues to me are the invasion of privacy issues. The agent and broker have absolutely no right of any kind for any information about my finances except the letter of qualification from my lender.
And that paragraph about fees is supposed to say that they will rebate the fees to me, not that I will pay them a minimum of 3% plus $625 regardless.
As for services?
1) I don't want them searching for me
2) I don't want them "pre-screening" for me
3) I don't want them "negotiating" for me
4) I don't want them doing any finance coordination for me
5) I don't want them providing any list of vendors to me
6) I don't want them providing any "guidance" to me regardless if they think it is "professional" or not
7) I don't want them to do a credit check as that is done by the my lender's underwriter.
8) I don't want them ordering reports
9) I don't want them acting as a middle man for all communications and disclosures, even though there likely is no way to avoid that.
10) I don't want them interpreting disclosures nor reports.
The only things I want them to do are:
1) schedule access to let me and my inspectors in at times convenient to me and my agents.
2) Use of their lockbox code to let me and my inspectors in
3) Be on time to site visits to let me and my inspectors in
4) Write what I want on the offers and counter offers; no feedback and not objections.
5) Submit my offers and counter offers within 24 hours of the time I contact my agent about making the offer or counter offer, and pay me $300 per day penalties for being late or unavailable.
6) Provide CMA's for properties I ask to see, with a minimum of 8 comparables for each, with detailed line item adjustments for each comparable.
7) Preliminary title check to make sure I'm not on some wild goose chase for a property that cannot be sold.
8) Provide an alternate in the office for offer submittals and property access if the agent will be unavailable in the required time frame.
- Roberto Ribas, "azrob"
- Contributions:10246
Pasa:
I usually write in 3% or per cobroke. If the cobroke is less I simply take less. Asking the buyer for an additional lump sum is over the top...
I usually write in 3% or per cobroke. If the cobroke is less I simply take less. Asking the buyer for an additional lump sum is over the top...
- Dan Kingsley, "TheRealEstateRanger"
- Contributions:106
interesting
- Pasadenan
- Contributions:20384
By the way, paragraph 9 regarding mediation or arbitration has to be totally removed. The errors and omissions insurance is of absolutely no use the way it is written. The way it is written is that the buyer is 100% responsible for all of the agent's errors, whether intentional or careless, and that neither the agent nor their broker nor insurance company will provide any compensation for damages to the buyer/client regardless of cause.
- Brigett Minnerly, "Brigminnerlycb"
- Contributions:6
I think some of these comments are perhaps getting a little defensive. As an agent (and I imagine most agents feel the same way) I'm simply trying to help you find what you want. Just like you expect to be paid for the work you do at your job, agents expect to be paid for the work they do for you, assuming they do what you ask and you're able to accomplish what you want with their help.
Personally, if I had a client who didn't want all of the services I offered them, I'd be happy to do only the ones they wanted. I doubt you'd find a single agent out there who would insist on doing busy work the client doesn't want or need. I'd be happy to show you the FSBO properties just the same as if they were listed in the MLS because many of them are realtor-friendly and will still pay the commission for you. Even if they didn't, if push comes to shove, I'd show it to you anyway because even if I'm not paid for the transaction, hopefully you'd remember my service-oriented attitude and you'd call on me next time or refer me to your friends and family.
What seems to have started this entire debate was a clause saying you agreed to look at all the properties presented to you. Nowhere did it say you had to go there. What she was saying was that she wants you to glance at an email and if the house truly offends you or is just horrible because of the polka dots or landscaping or for whatever reason you deem appropriate, you just reply "Nope, not this one, thanks." If you're actively searching for a property, why would anyone decline to at least check their email? That's all she's asking. And as far as acting in good faith to get to closing, it just means that if you're supposed to apply for a mortgage, you will.. if you're supposed to schedule an inspection and you refuse to let me help you, you'll handle it in time... if you're supposed to show up at the closing to sign the papers, you'll do so, barring an unforeseen emergency. .
Personally, if I had a client who didn't want all of the services I offered them, I'd be happy to do only the ones they wanted. I doubt you'd find a single agent out there who would insist on doing busy work the client doesn't want or need. I'd be happy to show you the FSBO properties just the same as if they were listed in the MLS because many of them are realtor-friendly and will still pay the commission for you. Even if they didn't, if push comes to shove, I'd show it to you anyway because even if I'm not paid for the transaction, hopefully you'd remember my service-oriented attitude and you'd call on me next time or refer me to your friends and family.
What seems to have started this entire debate was a clause saying you agreed to look at all the properties presented to you. Nowhere did it say you had to go there. What she was saying was that she wants you to glance at an email and if the house truly offends you or is just horrible because of the polka dots or landscaping or for whatever reason you deem appropriate, you just reply "Nope, not this one, thanks." If you're actively searching for a property, why would anyone decline to at least check their email? That's all she's asking. And as far as acting in good faith to get to closing, it just means that if you're supposed to apply for a mortgage, you will.. if you're supposed to schedule an inspection and you refuse to let me help you, you'll handle it in time... if you're supposed to show up at the closing to sign the papers, you'll do so, barring an unforeseen emergency. .
- Pasadenan
- Contributions:20384
The question was whether there was anything in any buyer's contract that protected the buyer. And it is not a question of "intent" of the document; it is how it would be interpreted in court or in arbitration.
So far, only one buyer's agent contract has been offered for review. We need to see others, but the agents don't want the general public to see them.
It is not a question of being "defensive"; it is a question about what the contracts say and who it protects or favors.
An agent that wants me to sign that contract would also have me sign a contract to pay for a house and leave the title in the sellers name, and to leave 10 existing liens on the property in my name.
Besides, if an agent can't be trusted to not post their phone number in a discussion post in violation of the terms of use of the website, they can't be trusted to fill out the blanks in a standardized contract form for a house purchase for me either.
So far, only one buyer's agent contract has been offered for review. We need to see others, but the agents don't want the general public to see them.
It is not a question of being "defensive"; it is a question about what the contracts say and who it protects or favors.
An agent that wants me to sign that contract would also have me sign a contract to pay for a house and leave the title in the sellers name, and to leave 10 existing liens on the property in my name.
Besides, if an agent can't be trusted to not post their phone number in a discussion post in violation of the terms of use of the website, they can't be trusted to fill out the blanks in a standardized contract form for a house purchase for me either.
- Pasadenan
- Contributions:20384
Two other things I expect from a buyer's agent:
9) Access and ability for me to look up things in the local MLS. (Not the agent doing it for me).
10) Agent lookup of MLS information about selected properties when those data fields are not part of the public view, upon my request.
9) Access and ability for me to look up things in the local MLS. (Not the agent doing it for me).
10) Agent lookup of MLS information about selected properties when those data fields are not part of the public view, upon my request.
- John McFarland, "JohnBuyerSideRealty"
- Contributions:23
My contract is as transparent as it gets. In fact, it's invisible. In the state of Arizona, a real estate employment agreement is not necessary to represent a party in a transaction; so unless a buyer requests to have an agreement with me, I do not require any of my clients to enter into one.
It's my expectation that they will want to take advantage of my expertise and work with me to pursue the purchase of any of the MLS homes that I send to them. After all, there is no charge to them for my services because I work for the commission split offered by the listing agent to the buyer's broker; and there's no chance that they will have to settle for dual-agency because I only work for buyers.
I offer my services on FSBO's at 3% should the buyer wish to involve me in the transaction. In the case of a FSBO, an additional provision of the purchase contract is that the offer includes a 3% commission payable to me at close of escrow from the seller's proceeds.
It's my expectation that they will want to take advantage of my expertise and work with me to pursue the purchase of any of the MLS homes that I send to them. After all, there is no charge to them for my services because I work for the commission split offered by the listing agent to the buyer's broker; and there's no chance that they will have to settle for dual-agency because I only work for buyers.
I offer my services on FSBO's at 3% should the buyer wish to involve me in the transaction. In the case of a FSBO, an additional provision of the purchase contract is that the offer includes a 3% commission payable to me at close of escrow from the seller's proceeds.
- sunnyview
- Contributions:24167
Thumbs to your transparency and the trust you place in your clients to find tangible value in your services without a legal tie. Not to say it never happens, but I think that satisfied clients are grateful for good representation and that they rarely jump ship in the middle.
- Pasadenan
- Contributions:20384
John -
Is the 3% for a FSBO a written contract, or verbal?
What if the FSBO lists a buyer agent fee paid by the seller?
What if you have already shown 20 homes from the MLS, and have written 3 offers for the client, but the client finds a FSBO and writes the offer themselves without your involvement? You wouldn't feel cheated out of a commission?
Is the 3% for a FSBO a written contract, or verbal?
What if the FSBO lists a buyer agent fee paid by the seller?
What if you have already shown 20 homes from the MLS, and have written 3 offers for the client, but the client finds a FSBO and writes the offer themselves without your involvement? You wouldn't feel cheated out of a commission?
- John McFarland, "JohnBuyerSideRealty"
- Contributions:23
At the time the client expresses an interest in seeing a FSBO, we have an understanding that any offer I write will include the additional provision that the buyer's broker fee of 3% payable at close of escrow from the seller's proceeds is included as an additional provision in the purchase contract.
If a client buys a home without me (which has only happened once to my knowledge), then c'est la vie.
If a client buys a home without me (which has only happened once to my knowledge), then c'est la vie.
- Michael Helton
- Contributions:456
Thumbs up to you John.
Any buyer agents open to a "transparency exercise"?
One of the key arguments from the peanut gallery is that these agreements typically do not provide any real protection for the buyer, but do a lot more to protect the REA and their ability to extract a commission.
Would any REAs be willing to post a link to their agreement form so that forum contributors can look at them and verify/validate the consumer protections that are provided by the agreement?
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