I came across a real estate agent that I meetup with in person and wants me sign a "Exclusive right to represent buyer for residential property". I told her that I do work with other agents. As a new investor should I sign it or not. Yes or No, why and please advise.
I came across a real estate agent that I meetup with in person and wants me sign a "Exclusive right to represent buyer for residential property". I told her that I do work with other agents. As a new investor should I sign it or not. Yes or No, why and please advise.
The agent only gets paid if you buy something through them. There's no point in spending time/energy/money working with you when there's a chance you could make the offer through another agent and leave them hanging high and dry.
If you aren't willing to commit to me as your agent, I'm not going to put any effort into working with you.
Lender · 92703 · Member since 2022 · 326 posts · 538 votes
3y
I can see why the agent is asking you to sign an Exclusive right to represent. I'm sure they are afraid of your loyalty. I would personally not sign as an investor for looking for investment properties. I Would not like feeling limited to whom represents me. Maybe if your just looking to buy your primary home in that scenario it might not matter as much. If you believe this agent is that valuable to work with then go ahead and sign the exclusive right to represent the buyer. Those are my thoughts I hope that helps.
Real Estate Agent · Winston Salem, NC and surrounding · Member since 2022 · 8 posts · 8 votes
3y
If you don't feel comfortable signing it, then don't. In NC, we have a "non-exclusive" buyer's agency form. Some firms really push the exclusive. If they don't offer that or won't work with you unless you sign it, I would move on and work with the ones you have that don't require it. Hope that helps!
I came across a real estate agent that I meetup with in person and wants me sign a "Exclusive right to represent buyer for residential property". I told her that I do work with other agents. As a new investor should I sign it or not. Yes or No, why and please advise.
The agent only gets paid if you buy something through them. There's no point in spending time/energy/money working with you when there's a chance you could make the offer through another agent and leave them hanging high and dry.
If you aren't willing to commit to me as your agent, I'm not going to put any effort into working with you.
I came across a real estate agent that I meetup with in person and wants me sign a "Exclusive right to represent buyer for residential property". I told her that I do work with other agents. As a new investor should I sign it or not. Yes or No, why and please advise.
The agent only gets paid if you buy something through them. There's no point in spending time/energy/money working with you when there's a chance you could make the offer through another agent and leave them hanging high and dry.
If you aren't willing to commit to me as your agent, I'm not going to put any effort into working with you.
I came across a real estate agent that I meetup with in person and wants me sign a "Exclusive right to represent buyer for residential property". I told her that I do work with other agents. As a new investor should I sign it or not. Yes or No, why and please advise.
The agent only gets paid if you buy something through them. There's no point in spending time/energy/money working with you when there's a chance you could make the offer through another agent and leave them hanging high and dry.
If you aren't willing to commit to me as your agent, I'm not going to put any effort into working with you.
I think I look at this in a different way (maybe I don't know the definition of exclusivity, but sounds like he can't work with another agent). How does the OP know if this agent is any good or not? They met at a networking event. Why would the OP tie himself down to an exclusivity agreement. If the agent brings him a good deal he will buy, this does not require an exclusivity agreement. Is the agent only working for the OP exclusively, no, seems to be a one way street to me. If the OP doesn't like the deal the agent can take it to someone else. But as I said, maybe I don't know the nuances of what the exclusivity agreement entails.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
3y
I recommend this: before having anyone represent you, make sure that they are an expert in what you're trying to achieve. You don't need 10 realtors out looking for properties; you're wasting everyone's time. Find a realtor who works in the investor segment and has a track record in your market. Look up their reviews, property sales, and background. When you find the real deal, sign the agreement and expect results. My firm is private client so I don't have the 'stranger danger/wannabe/time waster clientele that most have. Look at it as creating a team of experts in real estate, lending, insurance, inspections, trades - that are focus on the creation and development of your empire. If you're transaction oriented, you're better suited for a non-investor/general realtor. Be more and get more...
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
3y
@Silo Mansaray I sign one of those with my Realtor but it is specific to a house that they are showing me. It's not some blanket form that ties to me them indefinitely. And I think that's a fair way to do it. If they take their time to find and show me a property, I'll use them if I make an offer. If I find a property on my own or with another Realtor, they have no expectation of anything.
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
3y
I can see the point the realtors are making. On the other hand, it seems more like an lopsided commitment. Will they sign a form that every good deal they get they’ll bring it to you first? What is if the Realtor does not return phone calls? What if they get some money from their grandmother and goes on a six week vacation around the world? What if they work three hours a week and the rest play video games or message friends on FB? I had a realtor that we have bought multiple properties through that never required such an agreement. There was another area that we were looking To make an offer on, so we reached out to a realtor there and they wanted us to sign an exclusive agreement. I didn’t see the reason to sign the agreement whereas if this realtor was making offers for us in this geographical area, we were not looking over her shoulder for another realtor in that area.
P. S. Keep in mind. This is simply my opinion and insights and if I was a realtor, chances are high I could be singing a different song. Lol
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
3y
When I was first getting started, my biggest advantage was working with a really good agent who was also an investor herself. She was referred to me by another very successful investor. Committing to work with her exclusively up front was well worth having the mentorship that came along with being her loyal client through multiple transactions. I for sure would not have gotten nearly as far along on my investing path as quickly as I did without her help. Plus she brought me off market deals exclusively, shared things like lease agreements, connected me with lenders, tradespeople, helped me structure creative financing, advised me on self-managing, partnered on opportunities, taught me some "tricks of the trade", etc. She wouldn't have provided any of that and helped me get going the same way if I had refused to sign an exclusive with her. She would definitely have worked with someone else instead. That's how the true professionals operate in the industry (in my area and in my experience at least) so it's definitely worth committing to a great agent if you can find one IMO. Now I try my best to provide that same value for my clients, and also to vet them carefully the way she vetted me. One of the ways we vet clients is by discussing our agency relationship and getting an agreement in writing.
Make sure you pick a great agent, though (ideally one who also invests themself or at least specializes in the type of investing you plan to do and has a lot of experience, does a lot of transactions, has a good network for finding deals, etc.). It's also technically a requirement in my area to have an agency agreement in place. If we don't have one then we're technically supposed to treat that person as a customer and not a client, as the default relationship here is transaction broker which means we're not representing either side of a deal. We're not supposed to negotiate on your behalf or be your advocate until we're actually working for you, as defined by the agency agreement. The regulations and best practices around these agreements vary from place to place and person to person but loyalty is a two-way street everywhere and with everyone. A smart agent typically won't invest their time and expertise (or share their best opportunities) with someone who is unwilling to commit to use them for the transaction up front. That's a red flag for sure and they'll bring those deals and spend their time helping someone else who reciprocates the same level of commitment (and who they know has a history of closing deals and being good to work with).
However keep in mind that some of the contract terms are often negotiable: if there's something in the agreement you don't like or for example you may want to work with different agents for different property types or different locations, that can often be written into the agreement as necessary. You can also write in that the relationship can be cancelled at any time by either party. As an agent I obviously don't want to work with anyone who doesn't want to work with me, but I also want to get paid as well as comply with my brokerage and state regulatory requirements. I'll usually show a few properties to a new client or have a lunch meeting to make sure we're a good fit to work together and then discuss our agency relationship moving forward, once we've determined that our mutual goals are realistic and achievable together.
If you try to "work" with a bunch of different agents but don't commit to actually working with any of them, none of them will take you seriously. The very best ones will simply blacklist you immediately and move on with their day, while those who don't have many other leads to chase may string you along just like you're stringing them along, hoping maybe something will come from it despite putting in an amount of effort commensurate to your level of seriousness in working with them. So the end result will be you'll end up working with agents who probably aren't among the top producers. Remember that a small number of agents typically do a high percentage of the transactions in a given market. This is probably why investors sometimes complain about agents in general (garbage in, garbage out), and bounce from agent to agent. Once you find a great agent, stick with them would be my advice. Or just get your own license if you're going to "work with multiple agents" but not actually work with any of them for real. You might as well represent yourself with that approach IMO. Good luck!
I came across a real estate agent that I meetup with in person and wants me sign a "Exclusive right to represent buyer for residential property". I told her that I do work with other agents. As a new investor should I sign it or not. Yes or No, why and please advise.
I do not have my clients to that because I know I can get them a killer deal and I am not worried about that. Personally, I feel like agents often do that if they are not confident or if they are scrambling for business thus they rope you in. I am confident in my ability to bring my clients the best deals and make them the most money. I would not do it but that is just me.
Real Estate Agent · Cincinnati, OH · Member since 2020 · 169 posts · 145 votes
3y
I personally do not have my clients sign one of these but definitely understand when agents ask for it. I would go with an agent that you can trust and is very communicative with you. No need to be chatting with multiple when majority of them have access to the same deals. I would be up front with agents when you are talking with them as well.
Chicago, IL · Member since 2020 · 184 posts · 182 votes
3y
I have never, nor will ever sign that garbage.
A real estate car salesman is not needed in this day and age, except to get access to list on MLS, if you are a seller.
They typically bring nothing to the table, and you will do all the work. My most recent " investor recommended" agent in Chicago had me on his own MLS search and redfin was sending me properties before his own MLS search was.
I have never worked with an agent that hasn't lied, or played games. Most people dont know any better so they can scam those people. Its sad.
And Ive worked with local and out of state real estate used car salesman/women to the tune of 6-8+
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
3y
I have my clients sign an off market exclusive, meaning when I send them off market deals in Cleveland, Columbus, and Cincinnati they can't use another agent or go direct to seller (Which has happened before, hence the need for the document).
However for on market stuff I don't require my clients to sign this because I know I can out hussle every other agent, and if I can't, they deserve the business.
Your agent wants to ensure they'll be paid if you end up purchasing a property that they've already put time and energy into showing to you, but there's something in it for you, too. Your agreement can provide when and how you can end your contractual relationship with them if you're unhappy with their service for one reason or another.
Many agents will accommodate this type of guarantee request if you ask. You'd be released from the agreement if either of you were to decide that the relationship isn't working out, or that your personalities clash. You're not cemented to a business arrangement if the agent is too pushy or stubborn, or just doesn't seem to be hearing you when you try to explain the type of property you're looking for.
Many agents will accommodate a guarantee request if you ask for one. You'd be released from the agreement if either of you were to decide that the relationship isn't working out or that your personalities clash. You're then wouldn't be bound to a business arrangement if the agent is too pushy, too argumentative, or too stubborn.
Investor · Bemidji, MN · Member since 2016 · 23 posts · 6 votes
3y
I work with many different realtors and it has worked out well over the years. Whoever brings me the deal I am 100% loyal to them for that project. There are many times I will only hear from one of them. If I was to sign that document I feel it is very possible I could and would have missed deals. I also know that realtors work with a number of investors. Are they willing to sign a similar document that says they will bring me and only me each and every deal first? So I wouldn't sign a document like that, although I promise I will work with them and only them on any deals they send my way.
I came across a real estate agent that I meetup with in person and wants me sign a "Exclusive right to represent buyer for residential property". I told her that I do work with other agents. As a new investor should I sign it or not. Yes or No, why and please advise.
I have my clients sign an agreement of exclusivity for Off Market ONLY. I have a lot of offmarket deals that i cold call and dont want to get cut out. I wouldnt sign an exclusive right to represent though. Like mine only applies to my offmarket deals, and they can still work with other agents for other on and off market stuff.
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
3y
I've never used one before. Agents like them because in theory they tie the client to them so it's supposed to reduce wasted time that doesn't result in a paycheck. I don't dig it and it doesn't play out that way. I just charge up front for my time much like a lawyer does. Works much better for all involved in my opinion.
I came across a real estate agent that I meetup with in person and wants me sign a "Exclusive right to represent buyer for residential property". I told her that I do work with other agents. As a new investor should I sign it or not. Yes or No, why and please advise.
Heck no, also why are you using a realtor, they do not have the great deals, they are off market,
Investor · Atlanta, GA · Member since 2020 · 294 posts · 142 votes
3y
@Nathan Gesner
I think it makes sense not to be elusive with an agent. Instead, any agent who brings and/or shows property would be elusive on that specific property. They would manage the contracting, showing and get the commission.,
People are talking about two different things. If he is just waiting for any agent to bring him a deal, then a contract is not necessary because they aren't really working for him. If he wants an agent working to specifically help him find a property, then he should sign a contract.
People are talking about two different things. If he is just waiting for any agent to bring him a deal, then a contract is not necessary because they aren't really working for him. If he wants an agent working to specifically help him find a property, then he should sign a contract.
Why would an investor want 1 agent working for him? Instead of working with several agents? Do agents not have multiple clients? Investors should have multiple agents who know what the investor is looking for. When agent(s) notice a potential property on mls or other source, they call on investor and set the ball rolling on that property and should get all the credit for that specific property.
Likewise, if investor finds a property, they call on one of the agents. If agent is too busy with other clients or other commitments, investor should call on another agent.
Real Estate Agent · Ridgewood, NJ · Member since 2013 · 10 posts · 5 votes
3y
@Silo Mansaray
That’s a great question
Without getting into too long of an explanation we always use exclusive buyer agency agreement with a residential buyer.
However, as an agent who specializes in investment property and development I have to be flexible and earn their trust first.
Most investors are buying where it makes sense not in a specific area and they may already have relationships.
I’m OK with that and if I do require any exclusivity it’s very narrow when we start.
However, my goal is to earn their trust and their allegiance through my knowledge, hard work and hustle so that I am their go to.
That being said in every relationship I am always looking out for their best interest so if a situation arrises and they have the opportunity to find a deal from someone else. I’m going to work with them to figure it out for everyone.
If you don’t feel that with this agent yet Then, maybe that’s not the right time to do that. Best of luck!
Real Estate Agent · Member since 2022 · 31 posts · 25 votes
3y
As an agent, I can see why they are asking for it. I work with a lot of out of state investors here in Cleveland and I spend a good portion of my day driving around, sending videos of properties, etc. All I want to know is that we are working together exclusively, and you're not wasting my time. I tell all of my clients to interview agents and make a decision on the one you want to work with. But just choose one....if I find out they have another agent I usually just bow out. There are good and bad agents, if you find a good one I would hang on to them!
District Invest Group546 Reviews
Home to Investments Group - eXp Realty565 Reviews
NETWORTH BUILDERS5236 Reviews