I agree with you 100%. My agreement states what I will do and what I expect the client to do. Everything is there in black and white. I also have an “escape clause” in the agreement that says… if for any reason you aren’t satisfied with my performance or aren’t happy with anything whatsoever… all you need to do is send a letter stating that you aren’t happy and the buyer’s agreement will be terminated the same day the letter is received. No questions asked.
This usually helps put the client at ease and shows him/her that I will work my butt off for them.
And just to point out one other thing… I do think that asking for 3% guaranteed is way too much. My max. is $950. And I’ve never had anyone take me up on the offer to terminate the agreement.
I received an agreement from a Buyer’s Agent that I found listed on the web. She seemed willing to want to work with me but advised me to read over the agreement before signing it. Following is an excerpt that I’m not sure about:
["Client/Buyer shall be solely responsible for paying Buyer’s Agent’s commission of 3% of the purchase price (“commission”). Client/Buyer hereby authorizes Buyer’s Agent to accept payment from seller and/or seller’s agent as a credit towards the Commission. However, if said payment is less than the Commission, Client/Buyer agrees to pay Buyer’s Agent the balance of the Commission.
If client/buyer or any other person acting for client/buyer, or in client/buyer’s behalf, purchases real property which was first shown to client/buyer during the term of this contract or for a period of ninety (90) days after the expiration of such term, client/buyer agrees to pay buyer’s agent 3% of the purchase price. Client/Buyer’s obligation to pay the commission as set forth herein shall be binding on Client/Buyer regardless of whether the seller utilizes the services of a listing broker or any other broker and regardless of the amount of the commission to be paid by the seller to such broker.]
Do all Buyer’s Agents require you to sign such an agreement before they’ll work with you. I’m really not too sure about this.
is the buyers agent has you sign an agency agreement for only the homes they show you. DO NOT sign an agreement that commits you to that agent regardless of who finds the house… email me if you have any questions.
BTW…I am a Buyers Representative with a brokerage in Washington.
Re: Buyer’s Agent Disclosure - Posted by Stacy (AZ)
Posted by Stacy (AZ) on October 29, 1998 at 17:20:10:
If I read this correctly, it looks to be an exclusive contract for any property you purchase. If you found and bought a property ON YOUR OWN, the Buyer’s Agent will get a 3% commission. Here’s the clause:
If client/buyer or any other person acting for client/buyer, or in client/buyer’s behalf, purchases real property which was first shown to client/buyer during the term of this contract or for a period of ninety (90) days after the expiration of such term, client/buyer agrees to pay buyer’s agent 3% of the purchase price.
I would like to amend the contract to read (see caps):
If client/buyer or any other person acting for client/buyer, or in client/buyer’s behalf, purchases real property which was first shown to client/buyer BY THE BUYER’S AGENTduring the term of this contract or for a period of ninety (90) days after the expiration of such term, client/buyer agrees to pay buyer’s agent 3% of the purchase price.
I’d just prefer it to be crystal clear that the Buyer’s Agent doesn’t get paid 3% for something they had no part of. Maybe it’s not necessary, but I found it to be suspect.
I would also place an expiration date on the contract, such as 3 or 6 months from date of signing.
Re: Buyer’s Agent Disclosure - Posted by Tom Brown
Posted by Tom Brown on October 29, 1998 at 16:42:42:
Is this person an independent broker or just an agent that works for another broker? My reason for asking is that this would guarantee the agent a 3% commission. If the agent works for a broker, the agent’s cut is going to be less than 3% in nearly all cases.
I have seen agreements similar to this but usually the wording is buyer’s broker, not buyer’s agent. Call me overly cautious, but I was just wondering.
If the agent is guaranteed 3% as a commission, tell the agent that you want the difference if the commission is more than 3%.
I’ve gotten into this one before and I don’t really want to get into it again, but I can’t help myself.
There is nothing, NOTHING wrong with this agreement if you are a client looking for a house to live in. If you are an investor, I wouldn’t sign it.
There is nothing wrong with wanting to be paid for your work and I wish other agents/realtors would get it through their head that they don’t have to work for free. If I show a couple 12 homes and they end up attending an open house and buy that through the listing agent, I’m screwed. I’m just protecting myself by having a contract like the one we are discussing.
If they find a FSBO, all they need to do is let me know and I can work something out with the seller. I just don’t want to do all the work and have them go behind my back. FSBO’s rarely ever have a problem paying 2-3% if I bring them a buyer. But if I don’t have a contract with the buyer, more than likely, he won’t understand this fact and not even tell me about it. See what I’m getting at here?
Even if I can’t get the FSBO seller to pay any $ I only charge the buyer $950.
I wish that the person who wrote the clause we are talking about wouldn’t use confusing language and put it in layman’s terms. There is no reason to make a contract scary. A simple one sentence could have taken the place of her entire paragraph. And made it less scary.
Bottom line, I would say 3% is high. Don’t sign. If you are an investor. Don’t sign.
Posted by Stacy (AZ) on October 30, 1998 at 17:41:09:
Geff, I can understand exactly what you are saying. You, being a hard-working agent, could put significant effort into finding a home for your client, only to have it go down the drain if they find one on their own. You want to be guaranteed 3% regardless of whether you showed the property or not.
But on the other side of the coin, how do the clients know you are a hard working agent? You know there are some agents that may get this signed and not lift a finger to live up to their end, waiting for the client to buy a house so they can collect 3%. Where is the protection for the client in this regard?
I’ve had experiences with agents who go all out to get listings, hoping some other agent will sell the property so they can collect a commission. This is why I will only use an agent recommended by someone I trust.
I think the answer may be to add specific requirements to the contract that the Buyer’s Agent must live up to.