"Buyer Representation agreement"?

[Phitor]

DW and I are still about 6 months away from shopping for a new home, but we will have the opportunity now to check out a few listed homes with a Realtor, just to see what types of homes are available in the area. We were notified that we will have to sign a "Buyer Representation agreement", which apparently: 1) allows them to show us property not listed by [Real Estate Agency], 2) will be in effect only on the day we are shown property, and only for the properties shown, 3) dictates that [Real Estate Agency] will be getting the paid commission from the listing agency if we do decide to purchase any of the properties shown, and 4) we will not be responsible for paying [Real Estate Agency's] commission.

Will signing this pose any risk to us as buyers? The chance of us actually buying a home next summer that we are seeing this winter is pretty low, but I thought I would ask, and about any other relevant information on this type of agreement.

Thanks...

[wednesdayaddamsd]

I am looking for a home as well and the real estate agent that showed me one of her listings wanted me to sign this. I refused. When signing this, you are then bound to use that realtor to look for homes.

I want to be in a position where I am able to better negotiate because I can use the listing agent of a home I may want to purchase because the listing agent then gets 100% of the commission, and might be more inclined to help you get a better deal such as seller's agreeing to pay closing costs, etc.

The agreement my agent wanted me to sign said that she had to get paid regardless of what home I bought, even if it was for sale by owner, and if the sellers didn't pay her for any house I bought, then I would have to!

I ran away FAST from this woman and there is no reason you have to sign an agreement like that. That agent has the option of walking away if you don't sign the agreement, but in essence they're trying to contractually obligate you to stay with them, whether you want to or not. I would NOT sign the agreement.

Just my humble opinion!

[Phitor]

Thanks for the input. Based on their description, it didn't sound as dire as your experience. They were very specific on the agreement description. Mainly that we would be locked into working with that realtor if, next summer,  we decided to purchase one of the properties we looked at this week. And in that event, the listing agency would be responsible for paying the realtor commission, not us. On the surface, this doesn't sound that bad. However, if you think their description is being intentionally deceptive or misleading, that would be important to know as well.

[Jazzzy]

You will be asked to sign an agreement no matter where you go. Just make sure it covers only specific properties that you will see with that realtor and that it has an expiration date. Don't commit yourself for other properties in case you decide to go out and look during open houses.

[Jazzzy]

---

@wednesdayaddamsd wrote:

I am looking for a home as well and the real estate agent that showed me one of her listings wanted me to sign this. I refused. When signing this, you are then bound to use that realtor to look for homes.

I want to be in a position where I am able to better negotiate because I can use the listing agent of a home I may want to purchase because the listing agent then gets 100% of the commission, and might be more inclined to help you get a better deal such as seller's agreeing to pay closing costs, etc.

The agreement my agent wanted me to sign said that she had to get paid regardless of what home I bought, even if it was for sale by owner, and if the sellers didn't pay her for any house I bought, then I would have to!

I ran away FAST from this woman and there is no reason you have to sign an agreement like that. That agent has the option of walking away if you don't sign the agreement, but in essence they're trying to contractually obligate you to stay with them, whether you want to or not. I would NOT sign the agreement.

Just my humble opinion!

---

I use this tactic as well. Whenever I call about a property, I ask for the listing broker. Some will tell you that this is a conflict of interest on the part of the broker...that he/she can't represent both sides of the transaction. They can, however, if it is spelled out to both parties. I can take care of myself, and I want to work with the guy/girl who has the incentive of getting both sides of the commission.

[PixieQueen80]

---

@LynetteM wrote:

You will be asked to sign an agreement no matter where you go. Just make sure it covers only specific properties that you will see with that realtor and that it has an expiration date. Don't commit yourself for other properties in case you decide to go out and look during open houses.

---

Actually, I did not have to sign an agreement.  Most realtors want and encourage you to however if you are willing to walk away from the property they will sometimes work with you with a contract or this is how it worked in my case.  I was not willing to bind myself to one agent  regardless of how short the time period was/is.

[PixieQueen80]

---

@PixieQueen80 wrote:

---

@LynetteM wrote:

You will be asked to sign an agreement no matter where you go. Just make sure it covers only specific properties that you will see with that realtor and that it has an expiration date. Don't commit yourself for other properties in case you decide to go out and look during open houses.

---

Actually, I did not have to sign an agreement.  Most realtors want and encourage you to however if you are willing to walk away from the property they will sometimes work with you with a contract or this is how it worked in my case.  I was not willing to bind myself to one agent  regardless of how short the time period was/is.

---

Should say without a contract.

[Jazzzy]

In our case, we were only willing to bind to an agent for a specific property for a specific period of time. It did not cover other properties. We wanted the agreement because it binds the realtor to certain stipulations as well. The agreement protects both parties.

[Scope27]

---

@LynetteM wrote:

In our case, we were only willing to bind to an agent for a specific property for a specific period of time. It did not cover other properties. We wanted the agreement because it binds the realtor to certain stipulations as well. The agreement protects both parties.

---

Much agreed.  I signed one a week ago only because it's not limited to specific properties and the sellers pays her commission.  Either way you look at it, she is really working for the seller not me.  Her commission is based off the price of the house. But when you go with a double agent you have to question who the agent is really working for?  Sometimes you can have the nicest agent that may have you offer much more due to them working for either the seller's interest or their own pockets. 

[PixieQueen80]

---

@Scope27 wrote:

---

@LynetteM wrote:

In our case, we were only willing to bind to an agent for a specific property for a specific period of time. It did not cover other properties. We wanted the agreement because it binds the realtor to certain stipulations as well. The agreement protects both parties.

---

Much agreed.  I signed one a week ago only because it's not limited to specific properties and the sellers pays her commission.  Either way you look at it, she is really working for the seller not me.  Her commission is based off the price of the house. But when you go with a double agent you have to question who the agent is really working for?  Sometimes you can have the nicest agent that may have you offer much more due to them working for either the seller's interest or their own pockets. 

---

All realtors get paid a percentage of the sale regardless of who they represent so in esssence the more they sell it for the more they make.  Using a dual agent can work in your favor because in this case they don't share the commission versus them pushing an offer to the seller that have a commission split.  Its all about how you look at it.  The buyer is generally at a disadvantage because all parties except for the buyer earn more the higher the sale price is.