Is signing representation agrement for 6 months common with RE Agent. (documentation, 3%)
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Before selecting your agent you should inquire as to their background and experience. I would want my buyers agent to have at least 10 years of full time experience...
In my opinion, the number of years in the business is not a qualifier.
That arbitrary ten year number eliminates many extremely well qualified agents, and brokers. There are many bad and dishonest agents that have been in the business for ten years.
The 2011 NAR profile of buyers and sellers shows the following list of what Sellers expect from Agents:
98% - Honesty and integrity
94% - Responsiveness
93% - Knowledge of purchase process
91% - Knowledge of real estate market
84% - Communication skills
84% - Negotiation skills
80% - People skills
80% - Knowledge of local area
According to the NAR survey, years in the business is not on the list of what sellers and buyers expect from agents.
To answer the OP question, it doesn't matter what is common, it is what you and the agent are willing to agree to. If the agent requires a working agreement, and if you object, then you should find another agent. If you're not comfortable with that agent, you should find another agent.
One thing the agreement spells out is how the agent will be paid. That protects you. The agent cannot at a later date say "the commission on this house is only x percent, and my minimum commission is xx percent, so you'll need to pay the difference.
The period after the contract is to protect the agent from a buyer using the agent to show the homes, then going behind the agents back and dealing directly with an owner (that had been viewed with the buyers agent) after the contract expires.
Thanks for the reply. I started working with realtor from last week. So far, she showed me 3 houses. May be, she is going to explain these things later. But I am expecting little more direction from realtor considering it is my first home purchase. She provided links to specific project I am worried about in the neighborhood and addressing all the questions. But I expected little more explanation in terms of numbers and tangibles. May be, I am expecting too much from a realtor.
No you are NOT expecting too much. One of the biggest mistakes consumers make is assume all agents are equal. We aren't. You deserve to have really good quality representation from a professional that explains things to you so you understand what is happening.
I strongly suggest that you interview other real estate agents before signing the agreement. Now, this agent might be great, I don't know, but the problem is that as of right now, the agent's style isn't working too well for you. Get online, lookup agents in your area (lots of threads on here about how to find a good agent) and meet with at least two more before committing to an agent.
This is a very large financial purchase. Treat it with the respect that it deserves and find an agent that is right for you.
There's more detailed info on another thread floating around but depends on state requirements. My state does require a written agency agreement and I include a clause basically stating if they are satisfied I'll let them out. I'd suggest adding some sort of verbage that allows you to cancel in the event they fail to perform.
No you are NOT expecting too much. One of the biggest mistakes consumers make is assume all agents are equal. We aren't. You deserve to have really good quality representation from a professional that explains things to you so you understand what is happening.
I strongly suggest that you interview other real estate agents before signing the agreement. Now, this agent might be great, I don't know, but the problem is that as of right now, the agent's style isn't working too well for you. Get online, lookup agents in your area (lots of threads on here about how to find a good agent) and meet with at least two more before committing to an agent.
This is a very large financial purchase. Treat it with the respect that it deserves and find an agent that is right for you.
Thanks for the information. I am thinking of checking with realtor and see if she is ready to reduce the agreement to 3 months. One of my colleague bought house with the same realtor. That is how, I ended up approaching this realtor.
I have never signed one and will never sign one unless it is required by law. Don't do it. Such an agreement is good for the realtor but you gain nothing by signing it. What if you find out she's incompetent? Or you guys have a personality clash? Or you're unhappy with her in any way? Too bad, you're stuck.
And for 6 months with a 120 day protection? Man, she's aggressive!
I have never signed one and will never sign one unless it is required by law. Don't do it. Such an agreement is good for the realtor but you gain nothing by signing it. What if you find out she's incompetent? Or you guys have a personality clash? Or you're unhappy with her in any way? Too bad, you're stuck.
And for 6 months with a 120 day protection? Man, she's aggressive!
Your statement isn't true. The buyer has recourse if an agent violates an agency relationship. In my state agency is only formed with a written agreement as defined by the LLR/REC so my state it is good for the buyer.
I have to laugh. Buyers want an agent to represent their best interest in a transaction but do not want to sign the agreement that breaks down the agents duties to you. Without signing the agency agreement the agent DOES NOT have a fiduciary duty to you. Then you are on here saying my agent didn't do this and my agent didn't do that, I found the property on my own, etc.
I usually do not make my clients sign one because I can pretty much tell who to devote my time to and who not too. It just cracks me up that you want someone to represent you but don't want to sign the agreement.
Your statement isn't true. The buyer has recourse if an agent violates an agency relationship. In my state agency is only formed with a written agreement as defined by the LLR/REC so my state it is good for the buyer.
In CA, an agent has fiduciary duty whether an agreement is signed or not. I suspect Texas follows the same principle. Once the agent enters into a transaction representing the buyer, the fiduciary duty is in effect - with or without a signed agreement.
Signing on the dotted line adds no extra protection for the buyer. Not here. Maybe where you are it's different but out here, nope.
When I recently looked in NJ & PA, I did not have to sign a buyer's agreement. I would advise holding off until you are sure your agent is really good and will represent you to the fullest. Check out his/ her listings on Realtor.com and see if you are interested in the houses they are selling. If not, you don't have to worry about dual-agency, but they will have to disclose that anyway.
I have to laugh. Buyers want an agent to represent their best interest in a transaction but do not want to sign the agreement that breaks down the agents duties to you. Without signing the agency agreement the agent DOES NOT have a fiduciary duty to you. Then you are on here saying my agent didn't do this and my agent didn't do that, I found the property on my own, etc.
I usually do not make my clients sign one because I can pretty much tell who to devote my time to and who not too. It just cracks me up that you want someone to represent you but don't want to sign the agreement.
So on one hand you think the buyer is wise to sign the agreement but on the other hand you admit you don't make your clients sign them.
If it is such a wise move, why do you skip it with your clients? On the same token, if you don't make your clients sign them why badger on the OP for signing it with his agent?
Also curious, do your clients get less-good representation from you if they didn't sign the agreement vs if they had signed them?
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