May have signed with buyer's agent too quickly
Hello Everyone,
I currently reside in Liverpool, NY and my goal is to find a cash-flowing small multi-family to house-hack. I want to ensure it has at least $100 of positive cash-flow per door, as multiple investment guides say should be the minimum rule of thumb.
I am new to the Real Estate Investing world and was stuck in analysis paralysis for quite some time. Recently I decided that I'm taking action! I did some online research and contacted an agent located in Liverpool. We have looked at a few homes together and sat down to meet one night and I signed an exclusive buyers agent form which has a 6-month duration. To make a long story short, it's not that I do not like her, I think she's great, but she admittedly does not specialize in investing and does not have much experience with REI. She does have loads of knowledge about rehab work, but I'm not sure if this is the right fit for me. She is the first agent I've ever worked with and frankly, my adrenaline and excitation of beginning the process I think clouded my judgement. I should not have signed something I wasn't 100% knowledgeable about and undoubtedly am making some rookie mistakes. Is there anyway that I could still pursue working with another possibly "better fitting" agent or am I more or less bound now that I've signed the Exclusive Buyer's Agent form? Again, it's not that I don't like her, but I feel like I need more guidance than what I'm getting. Guidance about vacancy rates, rehab cost, property management, rental rates, good rental areas in Syracuse region, etc.
As always, thank you for your help and any advice would be excellent.
Jason Scharf depends on morals in my opinion. Do you want that seller that just accepted your offer (in the future) to entertain other higher offers just because they don't feel like you were really the best fit to buy their property?
I would have a sit down and let her know your expectations and then either she will say ok and go or she will say hey this is too much for me. Just be honest with her before you go behind her back.
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Real Estate Agent
- TII
you can always ask her to be released from the contract. You are also expecting a lot from your realtor, their job is to sell you a house. You must do your own do diligence, as far as making a sound investment decision.
Hi Jason,
Unless you decide to make an offer on the properties she's shown you, you should have any issues being released from that contract. The companies I've worked with let our clients tear up the exclusive agreement if you no longer want to work together.
My suggestion would be to let her know your intentions, but definitely don't blind side her.
Thanks for your replies? Esmir, do you have any agencies in particular that you could suggest?
Jason, did you sign a buyer brokerage agreement? If so, it's an enforceable contract. If you talk to her and explain you're feelings about the situation, ask her if she knows anyone who specializes in REI. She can then give them the contract and get a referral fee at least from the new agent when they find you the property. Win/win.
Steve is correct, if you buy a property outside your Agent in that time frame they are entitled to commission and it is enforceable in court.
Buyers Agencies are tough. On one hand no good Agent likes wasting their time, but I usually qualify my Buyers in advance. I don't use them by the way, and it's burned me a couple times.