As many others have said, if a buyer asked to see some houses first, and then, to not feel comfortable working with me, it`s more than reasonable. In fact, I usually ask the buyer directly if he trusts me, he has to sign it. If they don`t, don`t expect much more effort from me. If you sign it, you can expect 110% from me because I know you are a serious and dedicated customer. The worst part is an agent who puts his interests ahead of their own. For example, many builders in the Fort Hood area offer purchasing agent bonuses (some non-builders too) – some even twice as much as an agent could receive for a non-builder home. There is nothing inherently unethical about getting a commission bonus. But if they push you to a contractor that doesn`t fit your needs, you may want to ask a few questions and check that they really have your interests in your heart. Agents earn commissions by marketing a property with listing services, listings, shows and open houses. An agent`s task may include conducting negotiations with buyers, monitoring paperwork, and arreaying inspections, evaluations and other tasks.
It is quite common for a buying agent to work with the agent with whom you ask them to sign a buyer representation agreement. It exists because an agent could spend hours working with a buyer just to go under contract with another agent. Real estate agents work at 100% commission, so if they spend their money and especially their time working with a buyer who changes his mind at the last minute, it hurts their end result. If a buyer worked with Agent John for weeks and suddenly chose Agent Betty to help with the purchase of a home just because she is a family friend, John really loses. One of the most common complaints home buyers have about their realtors is that they cannot get in touch with them. Buyers call, they write. You`re sending an e-mail. And what do they get in return? Grilling. This is particularly worrisome in a hot housing market, where it is so important to move quickly if you find a home you love. Poor communication will lead you to miss opportunities to buy the home you really want. By signing this agreement, you will be a Bonafide customer.
As a client, you have an obligation to retain your real estate agent and real estate broker. Without this signed agreement, your agent has no fiduciary duty to you, which means they don`t necessarily have a duty to keep in mind your best interests when they show you their homes or negotiate with a seller. According to the National Association of Realtors should be a buying agent: The commission is first divided between the listing broker and the buyer`s broker. This distribution varies. Sometimes the listing broker gets a larger share. But at 50-50, that`s typical. Any agent worth his weight will make you sign a buyer broker contract. There is a lot of work going on behind the scenes, and an officer should not be working hours when he or she does not trust that you and them will work together. Not all deals pay 6% commission. Real estate professionals specializing in commercial real estate transactions can order up to 10%.
Discounted residential brokers may charge significantly lower commissions. Some offer standard commissions of only 1%. For example, if a competent buyer makes an offer and the seller simply decides not to sell, the seller may still be required to pay the commission. Other cases like this are when the seller cannot produce a clear title or if the house cannot be handed over to a buyer within a reasonable time. The buyer agrees to work only with the broker and agent you have chosen.