Is it ok to ask an agent to participate only in certain deals?

3 Replies

Here is the situation

I bought my first house with an agent and they were really good and I would like to use them again. However this agent requests you to sign a contract with them basically saying that anything you find should be disclosed to them (In or out of the MLS). Knowing that this was my first relationship I agreed with this term since I understand they only make money when a house is closed. After establishing my relationship and closing successfully I wanted to ask them to consider helping me with all deals found in the MLS and they would get a higher % than normal, but if I found one by myself out of MLS (direct mail marketing, door knocking, etc.) I would do the negotiating and they would not get their %. Even after a relationship and proving that I could be valuable they rejected this request and said that it only works if I do all deals with them.

Am I wrong to think that this is a bit too much, or are all agents expecting to reap the benefits of a client’s research? I want to know the perspectives of the agents and relatora here. Maybe there is something I’m missing!

Hello Jose,

This is a great question. I think its fair that you compensate the agent for MLS properties and any other property that he/she finds while saving on commission for any deal that you find from your own marketing efforts. At the end of the day, you are the one spending time and money to door knock, send out mailers and make calls.

I have made similar agreements with investors in the past who find properties on their own.

What they typically do is give me the listing to sell the home for them once they have renovated it. 

Best,

Abel

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here