Buyer Agency Rep Agreement - Addendums
As an investor, I'm preparing to select an agent in Little Rock. I'd like to modify the standard Buyer Agency Representation Agreement in a couple ways, and am looking for feedback to identify if these amendments may be agreeable to an agent, and if so, what the unintended consequences might be to me as the customer.
First, I don't want to stand in the way of an agent earning 3%, but I don't want to pay for a shortfall. My addendum will state a rate of 3%, with a shortfall waiver for the difference between 2.5 and 3%.
Secondly, I'd like to offer a price-reduction incentive. I'm aware that negotiating a price downward is reducing the income for my agent. I'd include an addendum providing a 10% incentive fee to my own agent, separate and distinct from base fee (and shortfall waiver), calculated as the difference between the lowest advertised price of the property and the final accepted purchase price. In other words, if the agent helps me get a price reduction of $10,000, they will receive an extra $1,000.
If I presented these addendums to you as an agent, would you be offended? balk? would it leave a negative impression on you? Are you open to negotiating the agreement?
Your thoughts are welcome.
First, I don't want to stand in the way of an agent earning 3%, but I don't want to pay for a shortfall. My addendum will state a rate of 3%, with a shortfall waiver for the difference between 2.5 and 3%.
Secondly, I'd like to offer a price-reduction incentive. I'm aware that negotiating a price downward is reducing the income for my agent. I'd include an addendum providing a 10% incentive fee to my own agent, separate and distinct from base fee (and shortfall waiver), calculated as the difference between the lowest advertised price of the property and the final accepted purchase price. In other words, if the agent helps me get a price reduction of $10,000, they will receive an extra $1,000.
If I presented these addendums to you as an agent, would you be offended? balk? would it leave a negative impression on you? Are you open to negotiating the agreement?
Your thoughts are welcome.