Buyer's Agent Agreement or Not?

Question

Hi There,

I am from Philadelphia, PA and will be visiting Myrtle Beach next month with the goal of purchasing my first STR ever.  The local agent has sent me an agency document and I am wondering if it is worth signing on to the buyer's agent relationship or to simply remain a customer.  In Philly, I know full well want to expect as a customer vs having a buyer's agent agreement.  Basically here there are no significant differences.  What is the advantage/disadvantage in MB.  I understand that SC is  a lawyer closing state.  What does this mean with respect to closing and closing cost?  PA is a title company state and I use them to order title insurance, estimate closing costs, hold escrow funds, etc.  Will a lawyer perform these types of duties?  Is the lawyer paid separately or is the fee wrapped into the closing costs?

I appreciate all the education I can get here.

P.

John Underwood · Answer

Yes the attorney does all that.

I usually tell a bunch of realtors I will honor them being getting the buyers agent fee for all properties they bring to me and show me. That way I can be fair to the person who did the work.

If I sign a contract I sign a buyers agent agreement specific to that property.

Scott Trench · Answer

Sometimes, I wonder if agents just send the buyer agency contract to see if they can get a signature - why not? They'll act like it's just a normal part of the process, even after the first meeting or two.

I'd just politely tell them that you are happy to sign one when you submit an offer. If they press it, go with another agent. We've got a bunch of good ones for you to interview under "find an agent" up there on the navigation bar, and a couple of agents from Myrtle Beach that are on this thread and highly active on BP have already responded.

Don't get married to an exclusive agent just yet, but I DO sign one of those (can be general for a month or so, or specific to the property you are offering on) when I start making serious offers with them.

Paulette Midgette · Answer

Thank you all very much for your well though tout responses. @Tookie Nemchak and @Myrtle

@Myrtle Mike Thompson, I am especially thankful for you realtor insight.  This is a great forum and I am happy I reached out@

KiKi Chase · Answer

Like @John Underwood said, I would only sign the buyers agreement for the property they bring you, or you know you're moving forward on. If you sign it prior, there's a chance you've "married" an agent that might not put in the work necessary! Make sure the check the boxes and do the work, then decide if you want to move forward with them.

Myrtle Mike Thompson · Answer

@Paulette Midgette I don't typically ask my buyer prospects to sign an agreement up front.  I trust that I'll provide enough value that they won't want to work with anyone else, and they'll sign one eventually when we submit an offer.  That being said, brokers here often train their agents to get one signed right away, so this isn't uncommon.  Also, folks wanting to buy an STR in Myrtle Beach are a dime a dozen (no offense).  The agent may be using the agency agreement to help determine if you are worth the investment of his/her time.  I personally won't go show property to someone who's going to be financing without first seeing a pre-approval letter from a local lender.  But once they demonstrate they're serious, I will hold their hand and get them to the closing table.  Period.

South Carolina law requires that all real estate transactions be handled by a real estate attorney.  They conduct the title work, hold escrow funds, and represent you throughout the purchase.  One of the attorneys I partner with offers a free closing cost estimate tool on their website.  Just hover over the icon in the bottom right of your screen and it should pop up.  https://grandstrandlawgroup.co...

Luke Carl · Answer

Really good agent probably won’t work without one

Elvise Atem · Answer

In as much as you are looking for protection, the documents protect the agents too and gives you authority over them. Duties and responsibilities relationship between you two.

A good agent will have you sign it, but as an investor, I would recommend you sign for per property, not for a length of time. that will give you the flexibility to work with other agents/wholesalers who bring you deals.

hope that helps

Faith Importico · Answer

Paulette, I would say it is not worth it unless you are serious. You do not need an attorney in PA, and most title companies will cross the Ts and dot the Is for you. The biggest factor that an attorney would need to read will be loan documentation.

I am an investment real estate agent myself, and i do not require a exclusive buyers agency contract. I give my people the freedom to operate outside of me, but expect payment on homes within my brokerage. If you know they have sold a lot of homes and have a great reputation, maybe its worth it but having worked in retail as well, talented buyers agents tend to move into listing agents.

Tookie Nemchak · Answer

As a South Carolina licensed Realtor, I will share that some listings do not offer a commission unless the buyer is under an agency agreement. The agency agreement protects both the agent and the buyer. I personally do not require it upfront but will ask for it before an offer is placed. This gives me the opportunity to prove my value. I also am in total agreement when an investor asks to make the agency agreement only for a specific property. When I have proven myself they will always come back to me when they are ready to purchase again.

Gregory H. · Answer

Some brokerages require their agents have a buyer's agency contract in place. I have my clients sign one in tandem with making an offer on a property. It is a general contract not specific to that property, but I would never hold someone to the contract if it weren't for a property that I did the work on. As a buyer, I certainly would not sign an agency contract with someone I do not have a prior personal or business relationship with.

Buyer's Agent Agreement or Not?

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