4 ms·

> Once they view the house, the owner could convince them to ditch the agent. I mean honestly, what does the average agent do for a client? Not very much. Most

by judge2020 3y ago

> Once they view the house, the owner could convince them to ditch the agent. I mean honestly, what does the average agent do for a client? Not very much. Most Buyer Agency agreements operate on the basis of "if we show a house to you, and you buy it, we are owed a commission regardless of if you terminate the agreement afterwards". Now, typically a real estate agent isn't about to sue their clients if they purchase FSBO, since that would mean suing them for a 2.5 or 3% commission the seller wasn't even offering to the buyer agent, but it does mean that you can't get agent 1 to show a house, then switch to another agent, without agent 1 getting paid.

cj 3y ago
Even if someone was driving by and pulled in the driveway and saw the house without the agent present? Do buyer agent agreements require you buy a house through them even if you find the house and view the house and negotiate the price with the seller yourself? (I’ve never relied on an agent for these things, I did everything myself when buying my first/only house)
- judge2020 3y ago
  Some have exclusivity agreements that require that, but they're pretty unpopular (because it's also intimidating for a buyer to sign). What I described is a non-exclusive showing agreements, where they only get compensation if they helped in showing the house or completing the transaction (like drafting the contracts).
- montgomster 3y ago
  In my state if you sign a buyer agency agreement, describe the property you are looking for and it is dated. You are obligated to pay in most situations. If you can prove abandonment you can likely get off the hook. Every state has their own laws and rules so be certain know what those laws and rules are. Also read the contract carefully. In my state there is a clause that if the listing broker doesn't pay the buyer agent, or doesn't pay enough to satisfy your fee, you are obligated to pay. I never liked that sentence. Thanks for your questions
montgomster 3y ago
When I began selling real estate in 1966 the legal theory in place was "Caveat Emptor" or let the buyer beware. There were many complaints and over the years the theory drifted to "Caveat Venditor" or let the seller beware. Most states have gone this route but I believe there are one or two states doing let the buyer beware.I cannot find information that quantifies the actual number of complaints, but my experience is that the complaints are about the same. This suggests that neither theory works in practice. I wrote about this[1] several years ago. The article gives you a common sense take on agency [1]https://dearmonty.com/is-your-buyer-agent-legitimate/ https://dearmonty.com/is-your-buyer-agent-legitimate/

cj 3y ago

Even if someone was driving by and pulled in the driveway and saw the house without the agent present? Do buyer agent agreements require you buy a house through them even if you find the house and view the house and negotiate the price with the seller yourself? (I’ve never relied on an agent for these things, I did everything myself when buying my first/only house)

judge2020 3y ago
Some have exclusivity agreements that require that, but they're pretty unpopular (because it's also intimidating for a buyer to sign). What I described is a non-exclusive showing agreements, where they only get compensation if they helped in showing the house or completing the transaction (like drafting the contracts).
montgomster 3y ago
In my state if you sign a buyer agency agreement, describe the property you are looking for and it is dated. You are obligated to pay in most situations. If you can prove abandonment you can likely get off the hook. Every state has their own laws and rules so be certain know what those laws and rules are. Also read the contract carefully. In my state there is a clause that if the listing broker doesn't pay the buyer agent, or doesn't pay enough to satisfy your fee, you are obligated to pay. I never liked that sentence. Thanks for your questions

montgomster 3y ago

When I began selling real estate in 1966 the legal theory in place was "Caveat Emptor" or let the buyer beware. There were many complaints and over the years the theory drifted to "Caveat Venditor" or let the seller beware. Most states have gone this route but I believe there are one or two states doing let the buyer beware.I cannot find information that quantifies the actual number of complaints, but my experience is that the complaints are about the same. This suggests that neither theory works in practice. I wrote about this[1] several years ago. The article gives you a common sense take on agency [1]https://dearmonty.com/is-your-buyer-agent-legitimate/ https://dearmonty.com/is-your-buyer-agent-legitimate/