Realtor wants us to sign contract.

Buying & Selling Real Estate
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Realtor wants us to sign contract.

Keith Hackett
Rental Property Investor · Clarksville, TN · Member since 2019 · 44 posts · 31 votes

1st time buyers. We just got approved for our first home loan. We understand that we need to look at many, many, many properties to educate ourselves on what is a good property and what is not. Our realtor is willing to show us as many properties over however long a span we need/ want (at least today that is what she said). We have viewed three homes and we love the realtor. Keep in mind we are comparing her to nobody because she is the first realtor we have seen in person. We have viewed 3 houses. Everything is going great. We already know one house is a “no-go” and have the other two to compare against each other. Everything is perfect which is why I’m worried. Our realtor wants us to sign a contract (which we haven’t yet) that basically states she is our official realtor and we won’t use any other realtors to view properties.

I do not like contracts.

I like flexibility.

I like learning.

I like comparing and contrasting people in the same way I intend to compare properties.

So far I like the realtor.

We intend to live in the house for a year or more before selling/ renting.

Advice?

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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
7y

@Keith Hackett

Look at it from your Realtors viewpoint. All she has to sell is her time and expertise. She’s willing to spend an unknown but presumably large amount of her time, as well as offer to educate you, and all she wants is your promise that if you buy a property you will allow her to make the commission. Almost any other profession would charge per hour, or charge a retainer. If you wanted the same deal from a lawyer, you would pay a $10,000 to $20,000 retainer.

Everyone has to follow their own policy. If i was in her position I wouldn’t continue unless you signed the exclusive agency agreement. You are far from serious buyers.

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  • Wes Blackwell
    Real Estate Agent · Phoenix, AZ · Member since 2016 · 738 posts · 1k+ votes
    7y
    Originally posted by @Keith Hackett:

    I do not like contracts.

    I like flexibility.

    I like learning.

    I like comparing and contrasting people in the same way I intend to compare properties.

    Consider the point of view of the Realtor at this moment:

    I like my time. I don't like wasting it.

    I don't get paid unless you buy, so if I put in hours of work with you and you buy with someone else representing you as your agent, it was a complete and total waste of time.

    I see that you're in the military... imagine if you got deployed, fought a couple battles, and then your commanding officer said "Sorry, we've decided to go with another soldier... no paycheck for you." You'd be pretty pissed about it, huh?

    I've had several rookie buyers on here reach out to me and ask me a million questions about the Sacramento or Phoenix, have me search and analyze properties for them, run the numbers, etc. and then email me one day and say they just got an offer accepted and wanted to thank me for all the help.

    Turns out, they bought the home with their sister-in-law as their agent who knows next to nothing about investing in real estate. They used my knowledge and advice, but she got paid. How is that fair?

    As agents, we give A LOT without any guarantee of compensation. From her perspective, she's already shown you three houses, spent hours of her time working with you, and wants to make sure you're going to buy the home with her before she spends any more time.

    I'm sure your wife would've felt the same way if you went several years dating her without putting a ring on her finger. She wants to know you're going to "buy the house" before she invests any more time or energy with you.

    "Kieth honey, when do you think we're going to get married?"

    "Babe, I do not like contracts. I like flexibility. I like learning. I like comparing and contrasting people the same way I like comparing properties."

    Hope you can appreciate the tongue-in-cheek joke, but hopefully it makes a point.

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  • Tyler Bushey
    Investor · Biddeford, ME · Member since 2017 · 282 posts · 180 votes
    7y

    @Keith Hackett see if the realtor will let you sign a contract for 14 days at a time.

    0Reply
  • Jeff Allen
    Real Estate Broker · Omaha NE · Member since 2019 · 30 posts · 31 votes
    7y

    @Wes Blackwell Amen

    0Reply
  • RJ Reynolds
    Realtor · Westwood, MA · Member since 2015 · 145 posts · 67 votes
    7y

    @Keith Hackett

    As an agent representing buyers, the contract provides me the assurance that I will get paid for my work. Any property I introduce you to (procuring cause), I get paid when you buy it.

    Have you read the proposed contract?

    Have you requested an addendum specifying options to handle some of your concerns?

    My broker encourages contracts as it defines the relationship. I can easily have modifications to clarify points for my clients. I’ve written contracts that specify what properties I am the buyers agent for although that’s an extreme. I’ll also write a short term contract or included write to fire clause (even without it you can fire me).

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