Arrangements with Real Estate Agents

4 Replies

Hey all,

When building a team in an area outside your local area what types of agreements do you offer to an agent that you are interested in working with?  I have an agent that I would like to have in my Core 4 and she is asking to have an arrangement in place.  Looking for best practices.

Thanks in advance.

@Michael Andrus. What do you mean by arrangement? Like a buyers agreement? Please don’t call it your “core four”. That’s a guru term and sounds weird.

Hey Caleb,

Thanks for the info.. I intentionally used the term for @David Greene .  The agent wasn't specific regarding the expectation of an arrangement.  I haven't had a formal "arrangement" with any of the agents that I have worked with in the past, and I was wondering if I had missed something.

I don't believe she's asking about about a buyer's agreement.

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I would assume she's asking about Buyers Representation, and for me its a case-by-case basis. If its a local, experienced investor who just wants me to show them house sand write offers (and, of course, list their projects when the reno is complete) then I don't necessarily ask for an Exclusive Rep agreement. However if its someone who is either new to REI, or new to my market, and wants to absorb my experience without any commitment that they are going to actually do deals, then I will sometimes want an Exclusive Rep or some other compensation for my time and knowledge. I suggest getting more info on what she's looking for and then figuring out if its right for you.

@Michael Andrus. Well I would ask for clarification. It’s probably going to be some sort of “exclusive buyer representation” sort of deal.

I understand where that “core four” term comes from, im just saying I think it’s over blown and not very realistic sometimes.