My wife and I are looking for a new home and we're finding out that the business has changed considerbly since last year. It's been my experience that the seller pays the Realtor or Broker's fees but recently we've been requested to sign an "Exclusive Right to Represent Agreement" (see attached), this after being shown only one property (already under contract) and researching 4 others. Is this how it works nowadays? Does the Realtor/Broker benefit from both parties? Thanks in advance. Image Unavailable, Please Login Image Unavailable, Please Login
I would run away. Check with local laws and consult a lawyer. In most states the a Realtor represents the seller of the home and not the buyer no matter what BS piece of paper you are signing and even if he/she is showing you the house. I have worked in the RE business for the last 5 years and it is the most corrupt business out side of used cars. Hire your own Lawyer and real estate appraiser then get a Realtor. But keep in mind the Realtor is not on your side the other two guys are.
I would draw up a contract that he/she will represent no one other than you and your wife for 6 months. And that he / she will bring you dinner each night. Run. You're being scammed...
I had a similar thing happen here in Utah and told the agent that I was shocked he would try that. Agent backed off immediately and then apologized. I would have found another agent but had been looking for months and was set on one of the houses he showed us so dealing with him was over anyway.
Unbelieveable... No, that's not how it works... That's complete BS, tell him to go F himself! And I wouldn't use anyone who tried that even if they did back down! Go find another agent.
Only has become typical due to the marketplace with sellers with no equity, short sales, etc... That said, there are so many agents that are hungry right now, I wouldn't sign one of those exclusive buyers agent agreements. Just say "NO"...........
That is insane. Perhaps this is something they get some unknowning first time home buyers to sign. Or people who can't read English. I'd find another agent- i couldn't trust someone at all after being presented with that.
Thanks everyone for the comments and advice. Everything said has been in line with our thoughts as well. Fortunately, there are plenty of realtors to choose from in our area.