Buyers Agent Contract..yes or no?

Question

I am currently on the look out for apartment deals and am beginning to interview brokers and lenders.  I've interviewed a number of brokers and have come across two that I like especially.  They both have mentioned that I should sign a buyers contract with them in order to (in short) increase my chances of them locating a deal for me.

I haven't found to much information on the BP forums about people's experiences with a buyers agent contract and I'm curious if anyone can share some insight.

Also, would it be allowed to sign a buyers agent contract with both of them?  Or does it have to be exclusive?

Joel Clausen · Answer

@Brock Mogensen  We have anyone we are working with sign one, but we also share with them that at any time they feel we (our team or myself) are not doing a bang up job for them, they can terminate the contract by simply "firing" us.  That contract protects the agent from a buyer potentially calling a sign or going rogue at an open house and signing a purchase agreement with another agent after we have spent time with that particular person.  In a commission only job, you want to benefit from the work that you have put in.  I always tell people....I do more work for free than any other job out there, because we don't get paid unless there is a transaction that takes place.

It also says in the contract (in short terms) that we represent you in the transaction and we are the point of contact with the various folks that work behind the scenes of the transaction.

I really believe that while an agent should be very knowledgeable about the real estate market....you should also have a great connection with that person because its going to be a fun/scary/emotional/weird/crazy/hectic time and you want to be able to ride that roller coaster with someone you generally like and can stand putting up with numerous showings and phone calls and texts.

Patrick Hermans · Answer

@Brock Mogensen If the agent you sign with is dynamite than its a good thing, but if you sign an exclusive contract with an agent who isn't great with investment properties, you're kinda stuck. Or you at least have to have a very awkward conversation in order to get out of it.