Been working with agent, but recently found off market deal...

8 Replies

Hello everyone.

I have been working with an agent for 2 or 3 months now. She's shown me 9 or so properties and has submitted 3 offers for me. Got one offer accepted and she helped through the inspection process (where we found issues and backed out). It's been a good business relationship. 

I've recently stumbled into an off-market triplex I might move forward with purchasing. Before the numbers discussion comes up with the seller, I'm curious how to proceed in relation to my agent. I certainly don't want to burn any bridges, but the seller isn't using an agent and I feel like I can get a better price and such by handling this without an agent. 

I understand that my agent doesn't get paid until we close on a property and excluding her from the discussion on this potential deal would prevent her from getting paid. So I thought if things move forward with the triplex that I'd give her $500 or $1000 of my own money as a thank you for her help thus far. 

What are your thoughts on this? This is my first time working with an agent and this would be my first real estate purchase so this is new territory for me. I don't want to ruin a business relationship. Your advice is appreciated. 

Thanks,

Nicholas 

@Nicholas Morgan Since it's your first purchase, you're going to want to keep your agent. There will be some of those same pitfalls along the way with this property that you ran into in your last one. Additionally, you'll need someone to walk you through all the paperwork, etc. so why not just pay your realtor the commission so she can do that for you? I had the same issue a month ago when I bought a duplex and though it probably cost me a little more, it saved me time, stress, and helped maintain a great relationship with someone who could potentially steer future investments my way. Just my 2 cents

You are correct your agent wont get paid -- but there are sooo many more reasons to use an agent then money.  They are there to help and to protect your interests - to ensure things are legally done and to ensure the deal closes.  She won't take your own money - or shouldnt.   There is alot of work a realtor puts in way before they even show you a house.

What type of contract do you have with her -- some contracts are held even if you find the house and not the realtor.  You will want to know that too.

Thanks both of you for your advice. Unfortunately, the deal fell through. The seller decided not to sell. However, I think that is a good point about all the paperwork that I'm unaware of. I think having her help me with this first deal whether it's on or off market is a good call. Thank you! 

@Nicholas Morgan Just realized how what I said sounded. Let me expand on that. Do you have a buyer broker agreement in place that whatever you decide to buy that you will use them? If you do, and it doesn't specify that it's only if they find you the deal, then legally, you have no choice but to use them for the purchase. If you have no signed agreement, then you're not obligated to use them as your agent. I agree with the guy above too, if you've never purchased property before, you'll want to use an agent. Also, the seller has to agree to pay the agent's commission. If they refuse, and you have a signed buyer broker agreement, then I believe you would need to pay their commission if you want to close the deal. If you decide not to use an agent, I would at least do the closing with a real estate attorney to make sure all the paperwork is on the up and up.

If you value a good relationship, like a good friend, I would communicate this concern with them and work out something that truly is fair to each of you. 

One deal does not supercede a strong player in a long term plan. 

Thank you everyone for your input! I really appreciate it. Yesterday I got a duplex under contract using my agent so it'll all work out now. Thank you for the advice!