Signing a contract with a real estate agent

[Larry Russell]

How common is it to sign a 6 month contract with a real estate agent? Would the seasoned real estate investor recommend a newbie to use this sort of arrangement to find investment properties?

My concern is by signing up with one real estate agent you limit your options/potential deals. And my second concern; would a non contract agent provide the necessary comps.

[Troy Weygandt]

From an agent standpoint, the contract you would sign basically says the Realtor is going to get paid if you buy a house in the next 6 months.

If I'm going to work for you, find leads, houses, deals, I want to make sure I'm paid. I won't get paid until you close on a deal. If for some stupid reason you cut me out and go straight to the listing agent, I did a good deal of work for nothing. Or if i show you the house and you use your brother, who happens to be licensed, I don't want to get cut out. @Darren Sager said it better here.

Now, before everyone jumps on me for not using a buyer's agent let me explain. The listing agent has a legal obligation to get the seller the highest price, period. They have absolutely no reason and its illegal to pass along any info from the seller to potential buyer.

The buyer's agent has a legal obligation to the the buyer the lowest price. Of course you want to work with a buyer's agent. Doesn't cost you anything and you have someone who has to legally fight for you. (There is more than just price, but for simplicity sake...)

@Curtis C. As a licensed Realtor you could collect the commission. Why would the listing agent get both sides? You would be acting as the buyer's agent and therefore would be entitled to the commission.

Thanks,

Troy Weygandt