Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There is no dual agency in Colorado. Buyers can be represented by a buyer's agent or they can have a neutral party to write contracts and follow the contract but not advocate or advise.
No one I have worked with has benefitted from a transaction broker.
Not unreasonable. It removes confusion.
Of course, if it is not already in the contract, the buyer should always require an escape clause with the right to unilaterally terminate for any reason, or no reason.
Agency laws vary state by state, and vary widely.
If working in NC, the agent represents the seller unless there is an agreement between buyer and agent that the agent is representing the buyer.
But, often overlooked...
1. If the agreement is verbal, the buyer is free to work with multiple agents. Not that that is an issue, but it surely doesn't lend clarity to the relationship between agent and buyer, other than the agent has to push for a sale to beat out the other potential agents. I don't see that as favoring the buyer.
2. If the agreement is verbal, the buyer and agent must include all parameters of a written agreement. The written agreement is several pages. By the time it is reviewed and agreed, the buyer and agent might as well get it into writing to avoid the whole "He said, she said" opportunity.
So, sign it and be sure to have the escape clause.
I don't understand why an agent would agree to an escape clause such as this "for any reason". Can't that be used by the buyer to make up some excuse and leave the agent out of the commission they deserve?
First, we have a Come Into The Office sit down consultation. We talk about their wants and expectations, any limitations - like a lease or a credit issue. Then, we talk about the status of the market. How other buyers have bought their property in this market.
If we agree to work together, then we sign a short-term agreement. If we like to work with each other we extend our contract. If we don't, then it's over.
This is exactly what I have pictured in my mind when doing business with a realtor.
The agent works for the seller. Period. That is where their commission comes from. If an agent wants you to sign a contract, run! If I am the seller, the agent works for me under a short term agreement. Very short. No 90 days nonsense or more. Too many agents are lazy and want to sell higher end properties. Too many agents are doing real estate for a hobby.
Now, with that said, a good agent is worth their weight in platinum. Finding that person is tough.
You should NEVER depend on an agent to educate you on buying a house. There are too many books, u tube videos and other resources to educate yourself. The agent wants to close deals, not be an educator or nursemaid.
Know what you want, how much you can afford, what your needs are specifically and do not waste an agent's time. You are either serious or not. An agent that detects you are not serious will not waste their time fooling with you unless business is very slow. A good agent is always busy. The deadbeats have time on their hands.
I have bought/sold six houses in my time. Out of six, only one agent really stands out and he said something I still think is wise: "I sell dreams and fantasies." Too many buyers fall in love with those to their own peril.
Good luck.
Last edited by Bygeorge; 08-13-2016 at 08:37 PM..
Reason: Clarification
I don't understand why an agent would agree to an escape clause such as this "for any reason". Can't that be used by the buyer to make up some excuse and leave the agent out of the commission they deserve?
I hang my hat on it. That escape clause serves me as much as the client.
To the extent that it is in my agency agreement template for every buyer, as such:
"Either party may terminate this agreement at any time prior to location of a suitable property."
I tell them, "Dump me if you need to, but you can't dump me after I get you a contract, just so I don't get paid." Actually, MLS rules would get me paid anyway, but that is beside the point in my thoughts.
No agent succeeds in this business for long without good people reading skills. Most people who would cheat me reveal themselves early on in the process for what they are. They can only conceal their nature for so long.
Happily, I have been blessed to have worked with many, many very fine people, far outnumbering the few chiselers and bums I have met.
If the relationship is not productive, it is very reasonable to part ways, regardless of who realizes that fact first. What agent wants to work as a fiduciary when the relationship is strained or difficult? Not me.
And I would not use the buyers agency agreement to bind an increasingly reluctant client to me. I have seen it done, and it is truly ugly of the agent.
Just after my first year in business, I had a client. We made an offer on a house, and she didn't get it. I could tell she thought I failed her, although it was just a very competitive situation with a tough seller.
I called, left VM. I emailed a couple more houses a few times. No responses.
After about 8 weeks, if I recall correctly, I received an email telling me that the agency agreement had expired, and she was not going to consider renewing it, and had no interest in working together further.
And, I thought, "This is nuts. She was dissatisfied, and felt she had to wait about 8 weeks to let me know directly."
Since then, that quote above has been in my buyers agency agreement template, and I go over it with the prospective client.
And, in my core market, in Cary, I usually list houses for 30 days. And, leave the seller an "out," that they can choose not to renew at that time. If the market softens, that may get extended to 45 days, but we have been in a sellers' market for over 2 years.
Hey, if the house doesn't sell, and the seller is satisfied, they will extend. I have not had to extend one yet.
I hang my hat on it. That escape clause serves me as much as the client.
To the extent that it is in my agency agreement template for every buyer, as such:
"Either party may terminate this agreement at any time prior to location of a suitable property."
I tell them, "Dump me if you need to, but you can't dump me after I get you a contract, just so I don't get paid." Actually, MLS rules would get me paid anyway, but that is beside the point in my thoughts.
No agent succeeds in this business for long without good people reading skills. Most people who would cheat me reveal themselves early on in the process for what they are. They can only conceal their nature for so long.
Happily, I have been blessed to have worked with many, many very fine people, far outnumbering the few chiselers and bums I have met.
If the relationship is not productive, it is very reasonable to part ways, regardless of who realizes that fact first. What agent wants to work as a fiduciary when the relationship is strained or difficult? Not me.
And I would not use the buyers agency agreement to bind an increasingly reluctant client to me. I have seen it done, and it is truly ugly of the agent.
Just after my first year in business, I had a client. We made an offer on a house, and she didn't get it. I could tell she thought I failed her, although it was just a very competitive situation with a tough seller.
I called, left VM. I emailed a couple more houses a few times. No responses.
After about 8 weeks, if I recall correctly, I received an email telling me that the agency agreement had expired, and she was not going to consider renewing it, and had no interest in working together further.
And, I thought, "This is nuts. She was dissatisfied, and felt she had to wait about 8 weeks to let me know directly."
Since then, that quote above has been in my buyers agency agreement template, and I go over it with the prospective client.
And, in my core market, in Cary, I usually list houses for 30 days. And, leave the seller an "out," that they can choose not to renew at that time. If the market softens, that may get extended to 45 days, but we have been in a sellers' market for over 2 years.
Hey, if the house doesn't sell, and the seller is satisfied, they will extend. I have not had to extend one yet.
How can you tell the chiselers and cheaters early on in the process? What gives them away?
I hang my hat on it. That escape clause serves me as much as the client.
To the extent that it is in my agency agreement template for every buyer, as such:
"Either party may terminate this agreement at any time prior to location of a suitable property."
I tell them, "Dump me if you need to, but you can't dump me after I get you a contract, just so I don't get paid." Actually, MLS rules would get me paid anyway, but that is beside the point in my thoughts.
No agent succeeds in this business for long without good people reading skills. Most people who would cheat me reveal themselves early on in the process for what they are. They can only conceal their nature for so long.
Happily, I have been blessed to have worked with many, many very fine people, far outnumbering the few chiselers and bums I have met.
If the relationship is not productive, it is very reasonable to part ways, regardless of who realizes that fact first. What agent wants to work as a fiduciary when the relationship is strained or difficult? Not me.
And I would not use the buyers agency agreement to bind an increasingly reluctant client to me. I have seen it done, and it is truly ugly of the agent.
Just after my first year in business, I had a client. We made an offer on a house, and she didn't get it. I could tell she thought I failed her, although it was just a very competitive situation with a tough seller.
I called, left VM. I emailed a couple more houses a few times. No responses.
After about 8 weeks, if I recall correctly, I received an email telling me that the agency agreement had expired, and she was not going to consider renewing it, and had no interest in working together further.
And, I thought, "This is nuts. She was dissatisfied, and felt she had to wait about 8 weeks to let me know directly."
Since then, that quote above has been in my buyers agency agreement template, and I go over it with the prospective client.
And, in my core market, in Cary, I usually list houses for 30 days. And, leave the seller an "out," that they can choose not to renew at that time. If the market softens, that may get extended to 45 days, but we have been in a sellers' market for over 2 years.
Hey, if the house doesn't sell, and the seller is satisfied, they will extend. I have not had to extend one yet.
Well, I commend you. I hope I'm fortunate enough when I am in the market for my final retirement home to find a buyers agent represent me with your attitude.
That's how it used to be many years ago. Perhaps you're stuck in a time warp. I haven't worked for a Seller in years. Period.
In my reality, the agent works for me if I am paying the commission. If his cut comes from me, then I call the tune. No doubt you can work for a buyer but not in my time stream. I assume you disclose to the seller that you are representing the buyer. And yes I realize that an agent can work for both parties. I would never agree to that.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
