Attention HOME BUYERs
Due to changes beyond our control, Real Estate Agents representing potential HOME BUYERS will now be requiring the home buyer to sign a CONTRACT - PRIOR TO SHOWING ANY PROPERTIES. The contracts vary from brokerage to brokerage and possibly from agent to agent - BUT they will all have the following:
1. The amount of compensation YOU are willing to pay the agent
This could be a flat rate $ amount, a % of the sales price, or many different options - Chances are good that the agent will be negociating with the SELLER to pay all or some of this compensation. But you could end up having to pay the difference. Have this conversation with your agent BEFORE signing the contract
2. A timeframe to which you are obligated to that agent
This could be 24 hours, 30 days, 90 days, a year - You are obligated to use (or at least PAY) this agent for ANY RESIDENTIAL purchase that you make during this time frame. Be sure you know what the time frame is, and how to cancel the contract - should you need to. Be VERY CAREFUL not to have more than 1 of these contracts in effect at a time or it could cost you $1,000s or the home of your dreams.
3. Instructions for how to cancel the contract
Most cancellation clauses will involve writting a letter to the broker and will take a specified amount of time. You won't just be able to cancel it today and use a different agent tomorrow.
My guess is that 95% of agents ARE NOT going to show you any houses without this agreement (contract) being signed prior to the showings. So in all likelyhood you will be signing one! But just know what you are signing and for how much and for how long. If you go look at houses with Agent Sue this weekend, and then go look at houses with Agent Joe next weekend - and buy a house YOU MAY HAVE TO PAY BOTH AGENTS.
Signing the document is NOT a bad thing, but you do need to know what you are signing and how it may affect your transaction. If you have any questions please discuss with your agent. Or feel free to give me a call, I will be happy to explain it as I understand it (318)773-2344.
Thanks
