I had a pretty good year, last year flipping houses, but all my deals came from my website and my own advertising. As of late I have seen a couple of houses on the MLS that I want to make offers on, so I reached out to an agent.
Today she sent me over a Non-Exclusive Brokerage Agreement to sign. It is for one year (which I will ask to change) and 6 month protection period. I expressed that I pretty much know what I am looking for and that she does not have to drive all over Atlanta letting me into homes, I basically just need my offers submitted. I understand the agreement is to protect herself in case I run with a deal that she present, which I would never do, but of course she does not know that. I read the entire agreement and my question is, if a deal comes through my website or from some other source, would I still owe her a commission.?
She uses the GAR form and under 5A commission it is really not clear. It appears as if I would still owe a commission.
I was also in an agreement with an Agent. I would ask him/her to reduce the time or even i would suggest to restrict the agreement only for that specific property if possible. There are so many agents, why to have an agreement from a buyers side? I am not a pro - you can take my opinion as grain of salt. Good luck.
As an agent, a non-exclusive agreement allows you to use multiple agents or no agents but protects the agent with the NEBA where he/she has presented properties to you or acts as procuring cause of the purchase or sale. Many brokers require their agents to have a written agreement and it is in the agent's interest to have one because, as you said...they don't know how you would work in a circumstance where a property was presented and perhaps you already had knowledge of it or the procuring cause is gray. The agent most likely would have to provide a rolling list of presented homes to you in order to protect their "claim" to any deal but I agree, some sort of agreement is needed if an agent is presenting offers on your behalf and negotiating either as your agent or a transaction broker. You can add stipulations to any agreement to make it accommodate your needs and because any commission paid on a listed property is paid by the seller, it is certainly worth enlisting an agent to help with acquisitions when you aren't getting enough opportunities with off-market homes.
Thanks Rama and Greg, I am going to use the agent. I decided to sign the non-exclusive agreement, change it from a year to 3 months and add a stipulation. Like you said Greg, it is worth enlisting an agent to help with acquisitions right now, so I don't think it will hurt if I sign the non-exclusive agreement, it stills gives me the opportunity to pursue off-market deals. Thanks again.
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