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I really need some solid advice about using family members as real estate agents! I saw another thread that discussed this topic, but I am hoping to get some specialized advice to my situation.
I am 24 and hoping to buy my first house. I am fairly inexperienced when it comes to everything that goes along with buying a house. I know what I am financially capable of, but other than that, I am somewhat lost.
I began looking for houses about a week ago and was referred to a real estate agent by a coworker who has worked in the industry and had recently bought a house. The mortgage broker also spoke very highly of this real estate agent. My real estate agent has done a lot of work for me in the last week and we have looked at about 18 houses and submitted 2 offers (that were not accepted). Thus far, she has been good to work with.
This is where it becomes complicated...
I knew that my uncle had been a real estate agent, but I was unaware that he was still licensed, because he has another full time job. He informed me this evening that he is still licensed and that I need to use him, and that he would kick me back some money. My uncle and I have never really gotten along well, and frankly his social skills are lacking.
I am now at a loss for how to handle this situation. My real estate agent has spent a lot of time doing work for me and I wouldn't have the slightest idea on how to break it off with her.
I don't really feel that confident with using my uncle, but I need some solid advice on how to confront that situation without causing friction in the family. What should I say or do to break it to him gently?
I would stick with the good agent that seems to be doing you a good job. Tell your uncle you've signed a 6 month Buyers Representation Agreement with the agent and you're locked in with him.
A little white lie doesn't hurt and if you're comfortable go ahead and sign the agreement with the good agent. That way you know he's truly working in your best interests.
Just say, "I'm sorry, I didn't know you were still licensed since you work as a .... If things don't work with the agent I am using now, I'll call you first."
While it appears nice to include a licensed family member in this little money train, a purchase like this often benefits from the disinterested 3rd party. Amen to what the other posters said to tell your uncle. If he is working full time at another job, he may not even have the time available when he's needed for negotiations, deadlines etc. I applaud your personal ethics at knowing you really should stick w/ the first one who is doing a good job for you.
One of the worst transactions I was involved a part timer was "helping" his sister buy a home. They missed deadlines, didn't fill out paperwork correctly, didn't know what he was doing. He had closed 3 properties in 5 years. We never got it closed, buyer lost her earnest money and all the money she had in the transaction (inspections and appraisal).
As a REALTOR in a small town community with 8 years of service, I would be insulted if my family members didnt contact me first based on my experience and reviews.
However, I did have a family member one time searching for a home that simply wasn't my area. I passed their information along to another agent who dealt in their price range and accepted a referal commission.
I think that might save your relationship with your uncle if you were able to do that and still keep your current agent, but let me tell you this:
This is your purchase. If your uncle doesn't "Specialize" in real estate, he is not going to be aware of the current market conditions, lender restrictions, home inspection changes, and attorney request that are now current with this ever changing market.
If your current realtor is working hard for you, don't leave them out to dry. They are working for you now and have earned your trust. Staying with them may go along way in building a lasting relationship.
If you don't want to work with your uncle, ask your current agent to have you sign a buyer agency agreement. Then you can tell your uncle that you didn't realize he was still licensed and that you have a signed agreement with the other agent.
This is a huge expense. You have a good agent that you feel good about. Don't change that. Please understand that this is a difficult market for full-time agents. Lenders are changing criteria all of the time. If you are not in this full-time it is really hard to stay up on what is happening.
I really need some solid advice about using family members as real estate agents! I saw another thread that discussed this topic, but I am hoping to get some specialized advice to my situation.
I am 24 and hoping to buy my first house. I am fairly inexperienced when it comes to everything that goes along with buying a house. I know what I am financially capable of, but other than that, I am somewhat lost.
I began looking for houses about a week ago and was referred to a real estate agent by a coworker who has worked in the industry and had recently bought a house. The mortgage broker also spoke very highly of this real estate agent. My real estate agent has done a lot of work for me in the last week and we have looked at about 18 houses and submitted 2 offers (that were not accepted). Thus far, she has been good to work with.
This is where it becomes complicated...
I knew that my uncle had been a real estate agent, but I was unaware that he was still licensed, because he has another full time job. He informed me this evening that he is still licensed and that I need to use him, and that he would kick me back some money. My uncle and I have never really gotten along well, and frankly his social skills are lacking.
I am now at a loss for how to handle this situation. My real estate agent has spent a lot of time doing work for me and I wouldn't have the slightest idea on how to break it off with her.
I don't really feel that confident with using my uncle, but I need some solid advice on how to confront that situation without causing friction in the family. What should I say or do to break it to him gently?
Please help! Thank you all!!
From the way you describe the situation I would definetely not work with your uncle.
I agree with the other posters. If you are comfortable with your current agent just tell your Uncle that you have decided to stay with this agent, I guess any way you think is best. As you have learned buying a home is a process and you need to work with someone that you enjoy working with. Good Luck to you, I hope you get the home you want soon.
Ditto to the other posters. Your largest investment should not be trusted to somebody who "dabbles" in the field and doesn't feel they are worth their fee. Your uncle should have done a better job of marketing to his "sphere of influence" and wouldn't be in the position he's in. I have a testimonial on my web site of a first time home buyer who originally said no to my representation to go with a "family friend," only to come back to me as that agent wasn't able to meet their needs without being fully dedicated to real estate.
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Thank you all!!
