Can I use several realtors concurrently
Investor · San Diego, CA · Member since 2017 · 107 posts · 35 votes
Can I use several realtors concurrently
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Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
9yIf a buyer has no loyalty to a broker/agent then the buyer can expect no loyalty in return with their time and ambition finding that buyer a deal. It's a 2 way street. I know as I am a principal commercial broker and an investor myself.
If a buyer is all over creation talking to tons of brokers/agents each with an opinion and the buyer gets confused and is all over the place we call those (flakes) in the business and it is bye,bye time.
Another buyer/lead is just like another property. There is a new one just around the corner. NOW having a buyer become a client where you both mutually respect each others time and are responsive and 100% open and honest with each other (no games) can create a relationship that works well.
Anytime I catch a buyer in deception or a lie it's bye,bye time. They have shown their true colors and how they choose to conduct business and it's not something I want to be part of or associated with.
Established brokers/agents have a solid pipeline of leads coming in and can craft their business model to how they want to operate. The newer agents tend to fall for anything to get started. A new agent and a new buyer learning off of each other can be a somewhat crazy experience as they tend to be both green.
21 Replies
- Flipper · Grants Pass, OR · Member since 2017 · 52 posts · 26 votes9y
There is no need to sign the contract - hopefully you didn't as it will lock you into a deal with them.
1. If you didn't sign the contract then feel free to work with every agent in town. Shop around for the best few and give them all the business with no contract.
2. You can still find houses outside of the agent but anything on the open market will have to go through them.
3. Each side of the transaction usually makes 3%, so 6% is possible if the agent represents both people. If you signed a contract to give them 6% on every transaction then you are being robbed.
- Investor · San Diego, CA · Member since 2017 · 107 posts · 35 votes9y
@Account Closed, I have not signed the contract yet and I wanted to run this on here. Thanks for your advice and reply. I did not know that I could work with an agent without a contract. Good to know that. The 6% on the agreement really bothers me as it is stipulated that for each transaction he needs to get his full 6% meaning if only 3% is paid by the seller, I would have to pay the remaining 3%.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes9y
If a buyer has no loyalty to a broker/agent then the buyer can expect no loyalty in return with their time and ambition finding that buyer a deal. It's a 2 way street. I know as I am a principal commercial broker and an investor myself.
If a buyer is all over creation talking to tons of brokers/agents each with an opinion and the buyer gets confused and is all over the place we call those (flakes) in the business and it is bye,bye time.
Another buyer/lead is just like another property. There is a new one just around the corner. NOW having a buyer become a client where you both mutually respect each others time and are responsive and 100% open and honest with each other (no games) can create a relationship that works well.
Anytime I catch a buyer in deception or a lie it's bye,bye time. They have shown their true colors and how they choose to conduct business and it's not something I want to be part of or associated with.
Established brokers/agents have a solid pipeline of leads coming in and can craft their business model to how they want to operate. The newer agents tend to fall for anything to get started. A new agent and a new buyer learning off of each other can be a somewhat crazy experience as they tend to be both green.
- 9yDarryl PutnamPro MemberInvestor · Mountain View, CA · Member since 2016 · 40 posts · 25 votes
@Michael Ndjondo makadi there is no need to sign a contract as a buyer. Scott and Joel are each right. Remember this is a relationship business. Treat brokers as you would like to be treated.
I have my go to guy. But I maintain relationships with several brokers. If another broker brings me an off market deal he rights my offer. If that same broker brings me an on market deal I have my go to guy write my offer.
Hope this helps.
- Investor · San Diego, CA · Member since 2017 · 107 posts · 35 votes9y
@Joel Owens. Thanks for your reply. I do understand your point of view and it does completely make sense. I m not in this to waste someone's time and trying to get a win win deal for both me and the agent. But my concerns is that: would signing a contract with one particular realtor not constraint my options in the market? Talking to him, I had the impression that he's vey knowledgeable in one specific area in the city. And even if he had full grasp of the entire market, he might pass out on some deals as results of having a broader database.
Also, the 6% in the contract means that I'd have to pay the 3% almost every time since most sellers would have their own agents.
So do you think is there a way to make sure that we both have a loyal and integer working relationship while not restraining myself ? For example what if I can find a great deal on realtor.com or craiglist.and I still want to use him to help me with the purchasing process.
- Investor · San Diego, CA · Member since 2017 · 107 posts · 35 votes9y
@Darryl Putnam, thanks for your reply. It was indeed helpful. How did you guys both agree on working on such relationship without having a contract in place?
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes9y
Why not sign a 30 day and see what he brings to the table?
I do not have buyers sign exclusives but I stay very busy with clients as I am established. My view is if a buyer is doing dirty dealings or not a right fit I do not want to work with them anyways.
- Investor · San Diego, CA · Member since 2017 · 107 posts · 35 votes9y
@Joel Owens, what do you mean by buyer doing dirty dealings? would you for example be able to work with an investor who has a couple other realtors at the same time? Are there any specific rules that would need to crafted into the contract to avoid potential conflicts?
- Residential Real Estate Broker · Smithville, MO · Member since 2015 · 3 posts · 2 votes9y
In my state if you dont sign a buyer agreement with me i am legally representing the seller and am required to work in there best interest. with that said if we dont work out its a 1 page cancel form i give you up front. I wont force you to work with me because as someone already said if your a flake im not working with you. I wont commit hours to looking for off market deals without a agreement. just my 2 cents
- Investor · San Diego, CA · Member since 2017 · 107 posts · 35 votes9yTim Hadley thanks for your reply. I do understand your points. My question so let's assume a buyer does sign a contract to work with you, is it standard to have the buyer pay his agent the remaining fees in case the seller's agent get their share as well?
- Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes9y
@Michael Ndjondo makadi In California it is very uncommon to sign an agreement like that in my experience, also I would be very concerned about the 6% because most California deals come nowhere near that for commission for buyer's agent only. I would interview other realtors who have experience with investors. From the way you describe it sounds like the agent is trying to make you an exclusive client through a contract rather than his/ her hard work, expertise, and respect.
- 9yScott WolfPro MemberLender · Boca Raton, FL · Member since 2014 · 1k+ posts · 956 votes
@Michael Ndjondo makadi I would definitely not sign the contract stipulating you pay him 6% (or 3% if he receives 3% from the seller). That being said, I do believe it is in your best interest to stick with one broker in your search, as it will streamline the process for you. If other brokers contact you about off market deals, that is a completely different issue, and you can deal with them for those deals only. But, if they send you on market deals, it is best to direct them to your broker, as his knowledge and expertise will help you in the long run.
BUT, if the agent won't do a search with you without you signing a contract, find another one who will build a relationship with you, without a contract.
- Commercial Real Estate Broker · Seattle, WA · Member since 2017 · 110 posts · 79 votes9y
Michael your asking the right questions and its smart of you to approach your relationship with a broker pragmatically. I tend to agree with everything @Joel Owens said.
You will ultimately find the most success by developing a strong relationship and track record with a single broker or brokerage team. You are of course free to work with multiple agents (so long as no exclusive agency contract has been signed) but you will find that the level of service you receive pales in comparison to committing exclusively. As soon as an agent finds out you are working with one (or more) of their competitors they will lose interest. A good agent will be able to articulate the importance of an exclusive relationship, if they cant I would maybe find somebody else. Keep in mind everything in the exclusive contract is negotiable so one approach might be to sign a 3 month agreement to test the waters and see how it goes, if you find your getting good service and work well with the agent you can always extend / resign.
regardless of any exclusive agency agreement you are free to search for properties yourself, the advantage of using an exclusive agent is that if you find a property (driving, online etc.) you can send the address to your agent and they will layer on their advice / recommendations / thoughts on the property as it relates to the market. However if you signed an exclusive any negotiations will have to go through the agent.
One last thought, any established agent is going to have a substantial network of sellers, investors, developers etc. and any time they come across an "off market" property they will give their own network / exclusive clients first crack at it before taking it to market or sending to non-exclusive clients.
I'm a commercial broker so the processes are slightly different than residential but my most successful long term relationships are all exclusive and once your able to build trust and a track record with your client deal flow vastly improves. In general i shy away from taking on new business if the client is reluctant to sign an exclusive on an introductory short term basis.
- Frisco, TX · Member since 2017 · 201 posts · 95 votes9yI'll throw my 2 cents in here. I worked as an agent for 5 years and licensed broker. I worked as a buyers agent when working with buyers at a time when no one was doing this in MA. When working on a listing for the seller I was obviously a sellers agent. I signed all my buyers to contracts. It was for 3%. Most of the time sellers agents weren't offering 3% to the buyers agent. I, in conjunction with the buyers consent, ALWAYS negotiated the 3% into the contract. Buyers knew I was working FOR THEM. They also knew I was going to the mat to negotiate a great deal for THEM and that I wasn't going to fold easy. I never had a buyer pay more for a house than they were comfortable and my fee never became an issue in the negotiations. What I found out is that a lot of agents at the time were listing out at 6% and only offering 2-2.5% to whoever brought the buyer. I had one time I was unable to negotiate a 3% for myself and I waived the 0.5% for the buyer as I felt if I had done a better job, I would have been paid. That being said, a year sounds very long though it could be based on what you said to the realtor regarding how ready you are to buy. But 6% sounds very high. And he should first get paid out of the commission from the sellers agent. If it works the same there as it did in MA and NH when I was in real estate sales. Ask him/her what the typical payout is. Have him show you on MLS. I like the advice of having an option to cancel. After all, most people don't get married before going on a few dates. I'm not skeptical of signing a buyers contract but I am very skeptical about you signing THIS contract.
- 9yDylan VargasPro MemberRental Property Investor · Chico, CA · Member since 2016 · 625 posts · 336 votes
@Michael Ndjondo makadi Welcome.....Other are being too nice here. Tell this person to buzz off!. A year is ridiculous and taking advantage of you. This should tell you about their character or lack thereof. What happens if you can't stand the "team" or staff? What if you find a deal that doesn't want to use a Realtor? Run from this agent! Keep looking. Talk to other agents. The time will come when you feel the need or comfort to use someone exclusively. This is absurd, really. You are an investor looking for deals, so that throws out 95% of the agents out there. You are not a retail buyer looking for your first home. Make sense?
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes9y
Like Taylor I have criteria working with commercial clients. Mine is not to sign an exclusive but to see their financials upfront.
If they want to remain a mystery then it's bye,bye time immediately. I have found the buyers that provide financials, communicate well and on time, and do not have a problem saying exactly what they want have a high chance making to closing.
The others that want to control everything, have little to no experience with a commercial transaction, and think they know it all tend to be flakes, unfocused, and a waste of time.
If someone wants to remain a mystery they can give me a 20,000 upfront non-refundable retainer for my time spent on them and if they actually close on something if allowed in that state I would give a credit for the 20k.
As a broker you just can't work with unstable buyers who will waste your time for nothing. You miss out on the good buyers that way, lower your deal volume, and add on unnecessary layers of stress to your life.
- Real Estate Agent · Corona, CA · Member since 2017 · 39 posts · 13 votes9y
Hi Michael! Good questions. I'm a Realtor in Riverside & Orange Counties & I think I can provide some value here.
1- In theory, you can work with different agents at the same time, so long as you have not signed an Exclusive Agency agreement with one. I don't recommend it, however. Instead, ask for a shorter 3-4 month time period instead of a full year on the Exclusive Agency agreement with your current agent. Get it in writing. The agent should understand. Otherwise, it will turn the agent off and he/she could label you as not serious if you begin working with multiple agents. If you don't feel like you're getting what you need after a couple weeks, communicate that to the agent-- how often you want updates, in what form you would like your updates, what you consider a good deal, etc. so the agent has the opportunity to meet your needs.
2- Exclusive Agency-- If you've signed the most common agreement, Exclusive Agency, you could likely still owe a commission to your agency broker if you submit an offer on a property without notifying your agent. What would likely happen is the listing agent would keep both sides of the split (6% total), and your agency broker could sue you for their side of the commission split (3%). Note: commissions are typically paid by the seller, so it saves you no money to exclude your agent in the event you find a listed property on your own. Exclusive Agency is a great thing -- not only does it reassure your broker that you're ready and serious, but it also makes your future offers more competitive. Here's what I mean: Once upon a time I did not have my client sign an Exclusive Buyer's agreement. One day before closing, my buyer tells me she is working with another agent she just met to put in an offer on a totally different property-- she cancelled our Escrow, lost her Earnest Money (& worse), and left the seller wondering HUH?! This poor seller had already moved out of state and completed all of her desired repairs. Long story short, I could have instilled more confidence in and protected the transaction better had I asked for Exclusive Agency. It is a great thing and a reminder that purchasing real estate is serious and requires transparency.
Non-Exclusive Agency-- If you've signed a Non-Exclusive, you likely would not owe a commission to the agent broker if you found the property yourself, but it depends on the agreement. I prefer Exclusive Agency agreements to Non-Exclusive Agency agreements, but I have used Non-Exclusive agreements with investors previously. They provide agency for specific properties that I have found for them. If you plan to drive for dollars or lead generate on your own, I would explain that to your agent and have them draft a Non-Exclusive agreement, excluding all unlisted properties that you find on your own.
3- Commission rates are set by the seller, typically about 6% in San Diego (this usually means 3% splits both for the listing agent and the selling agent, but splits could also be divided up as 4/2 or 3.5/2.5, etc.). What's great is in 99% of cases as a buyer you are not paying a dime in commissions (the MLS listings will show your agent what the set commission split is on each property). The 6% is paid by the seller at closing and distributed to the listing broker and the selling broker, which is further distributed to the agents themselves.
Ultimately It's in the best interest of your business to leverage an expert agent in your area! It's AMAZING when you find an expert agent who understands your goals. Having them on hand to call at any time with any question is invaluable! I recommend at least meeting your agent in person before signing anything. You want to get along with this person and listen to them speak to their business. If it's a good match, go Exclusive! Your agent will work hard for you!
- Real Estate Consultant · Houston, TX · Member since 2015 · 125 posts · 28 votes9yMichael, Unless you've signed an agreement, you are under no obligation; however, unless you plan on using the agent to write your offer or listing, you should inform them that you are working with multiple agents. Agents deserve to have their time respected and valued.
- Residential Real Estate Broker · Smithville, MO · Member since 2015 · 3 posts · 2 votes9y
Michael Ndjondo makadi a typical transaction in mls pays 2.5 or 3% to the buyer side and that is what i make. I have had a few fsbo that refused to pay any commission and my buyer was willing to pay me 3%. But we talked it over before we made the offer it only made since because the fsbo was 20K under market value and we knew it so he paid me $2500 and got his house cheap. but in all honesty i sell about 60 homes a year and i have done it twice in the last 2 years. it requires a fsbo that is undervalued which is very rare indeed.
- Investor · San Diego, CA · Member since 2017 · 107 posts · 35 votes9y
@Aaron K., @Taylor Hazard, @Debra Grumbach, @Dylan Vargas, @Joel Owens, @Amanda Fallon, @Kirk Galt and @Tim Hadley, @Account Closed, thanks you all for your contributions as they really opened my eyes and made me think even more. My next step is to set up a meeting with that agent and go over my concerns and questions in details. I will also discuss with my acquaintance who referred that agent to me and find out what kind of agreement they do have. Next, I will try to find how much commission a buyer agent usually gets in Wichita, KS so I know and be aware of.
Last, I will try to contact a couple more agents and have discussions with them. I think I'll try to work with only one agent but I will definitely ask for a short term agreement if I am required to sign one.
I am super excited to finally get started with my RE investment journey and cannot stop thanking you all for making it easier for me.
- Rental Property Investor · Honolulu, HI · Member since 2015 · 143 posts · 61 votes9y
@Michael Ndjondo makadi Hey Michael. I have a recommendation you can work with for this specific area. I am in no way affiliated nor receive any type of compensation for this referral but I was actually making inquiries on certain properties out in this area and she proved to be extremely helpful. I believe she was a listing agent for one of the multi families I was looking for. We also do not have any type of signed document or anything. If you're interested, please feel free to message. I was going to reply to the other questions but they were pretty much covered already. Someone trust worthy should nip some of your other concerns.
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