You are not legally obligated to your friend who is a REALTORÂ®. You may, however, owe a commission to the Real Estate Company that your friend/REALTORÂ® works for. Did you sign an Exclusive Buyer's Agreement with your friend/REALTORÂ®? It would spell out your financial obligations.
The question you should be asking is:
What value does using a REALTORÂ® bring to the purchase of the most expensive investment of your life? If you cannot answer this question, then you should talk to your friend/REALTORÂ® to enlighten you! :)
Good luck on your purchase!
Did your agent friend show you the property?
Does your agent friend expect commission?
Is the seller or you willing to pay your agent friend a commission?
Did you have a buyers agency agreement signed?
If you did not have a Buyers Agency agreement signed than no you are not obligated, but if you are asking this question than I would say that you feel that maybe you might owe them something!
When you approach a Realtor and ask them to "find something for you" you have entered into a contract for their services. If it actually leads to a written contract or no, and weather or not it's ethical to buy from another person...that's another question. The right thing to do would be to bring this agent in as your "buyer agent" since they spent time with you.
Now, the fsbo might not want any involvement from an agent, so it might not even be an option for your friend to be involved. You might want to find that out, and then make your decision on how to proceed.
If you have some guilt about this (if your frieind has spent a lot of time working with you already), you can always ask your friend to help handle this for you, for a smaller commission, which can be factored into your offer. You won't be sorry that you had the guidance. And, as the process continues, I am sure you will be happy for the support and professional help.
If you really want to do it on your own, I am sure your friend will understand. If you were my friend, and you told me you found a fsbo, I'd give you a big smile ( while crying hysterically on the inside!) and wish you all the best !!!
And.... truthfully..... I'd mean it (once I got over the shock of the news). Life would go on, and I'd still be your friend.
The only thing I wouldn't forgive in a friend, is if they went and bought a house, out of the blue, from a different Realtor.
Good luck Stinky - hope all works out well for everyone involved.
Prudential NJ Properties
Further, this is the living your friend makes and I would guess has probably given you advice on in the past, showed you other homes, etc. even if it weren't regarding this particular property. I sense your question may also be about friendship and not just a legal obligation.
Real estate is a tough living sometimes. It may be worth using this friend of your as an agent, not only for his or her insight into the rest of this sometimes complicated transaction, but to avoid ruining a good friendship. As an agent, though we try very hard to distance ourselves and treat this totally as a business, it does hurt when a friend or relative chooses to go it alone or use another realtor. It can be very difficult to find qualified buyers and sellers, if you can't rely on your friends to patronize your business, who can you rely on? I would guess that if you were an accountant or an insurance agent, this friend of yours would make every effort to use your services as well.
Good luck and I hope this is a great home and smooth sale process for you!
I hope that this has helped you and if I can be of further assistance to you or anyone on this board feel free to contact me. Eileen@maturorealty.com 856-776-3264.
I wish you luck in your home search and have a good day.