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Joe, Home Buyer in New Hampshire

Signing a Buyers agreement or non buyers agreement? If I sign with a Realtor do I have a choice? Why should?

Asked by Joe, New Hampshire Wed Jun 4, 2008

i sign a buyers agreement If I am able to do all that work myself? If i already signed a buyers agreement for one house and didn't buy that house can I sign a non buyers agreement for the next house?

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9
Hi Joe,

Typically when a home buyer signs a representation agreement it is enforceable for a stated time period. It is possible that your agreement was written to only apply to one home. You need to take a look and verify what you agreed to. If the time has expired or if it is applicable only to the one home, then you are not obligated to be represented by this agent or any other agent with your next offer.

That all said. Unless you are attempting to purchase a home that is for sale by owner or listed with a low commission agency, using a buyer agent should only work to your benefit at no expense to you. An agent usually has more inside information and can provide more ammunition during negotiation (not to mention a buffer between the seller and buyer). Also, an agent can assist you with inspections, financing, lawyers, insurance, utilities and getting the home closed.

In any case, be certain to investigate comparable properties that have sold near the property you are planning to make an offer on.

Best wishes,

Christopher Rich
William Raveis Real Estate
http://www.fairfieldcountyrealestate.com
(203) 768-5222
chris@fairfieldcountyrealestate.com
1 vote Thank Flag Link Wed Jun 4, 2008
In case you didn't notice - all of the answers here seem to be trying to convince you as to why you need an agent in the first place, and don't really answer your question.

Bear in mind - you're jumping into the shark tank asking this question. You're asking a forum full of agents whether or not you need to use an agent. Do not expect a totally straight forward answer.

In terms of agents being able to protect you in terms of contracts and legal ins-and-outs - that's a bunch of BS. If you got into a legal jam as the result of a contract - that same agent would advise you to speak to a lawyer, as agents are not permitted to give legal advice.

If you feel you are capable of handling the transaction yourself, get a good lawyer who is versed in real estate law in your area, and have at it. You don't *have* to use a realtor. They come in handy, but if you're willing to put in the time/effort yourself - there's no reason why you can't, or shouldn't. Do protect yourself and hire a lawyer to double check everything though.
1 vote Thank Flag Link Wed Jun 4, 2008
It mainly depends on what you filled in under the search terms for your buyers agreement. If you put say manchester and just Manchester and now you are looking in Hampton then you would be free to sign with someone else. However if you put NH then the umbrella is a little bigger and would cover any home. If you are not happy with a buyers rep ask to be released. I dont know why you wouldnt want someone to represent you, a non agent is limited to the advice they can give, make sure someone is looking out for you.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Wed Sep 3, 2008
You really should have a buyers rep. If you think that you can navigate the process on your own than you should not have signed the agreement also you can sign a property specific agrement.But it is in your best interest to work with one agent you will build a trust with.  That seems to be an obsticle for you.Have faith in your agent ...
0 votes Thank Flag Link Sat Aug 23, 2008
Also Joe check the agreement you signed with your realtor. A lot of these agreements are not limited to a single house, but rather are contracts that have a set expiration date.
A lot of times there will be provisions and clauses that dictate that the agent will get a commission regardless of whether they worked on the deal or not - if they are the procuring cause (they showed you the house while still under the agreement).

It's not so much a matter of "i signed an agreement for THIS house". It's a matter of "i signed this agreement to work with this person for this period of time".

If you're not purchasing a house they showed you or told you about, and they have no claim of "procuring cause" - then it doesn't matter. Just make sure you get clarification as to your obligations under the agreement. If you are still bound by the agreement, you can ask to be released from the agreement at any time. If you explain to the broker or agent that you wish to conduct the transaction on your own without thier help - as you have seen here - expect to get a LOT of resistance. You can ask to be released from the agreement however.
0 votes Thank Flag Link Wed Jun 4, 2008
Hi Joe. I agree with Shannon, but there are also other advantages to having an agent represent you. When representing you, the Buyer, the agent owes you the confidentiality,loyalty,obedience,disclosure and accountability. A Buyers agent can provide you with information regarding the seller and/or the property you are interested in that may help you decide what offer you would like to make (ie: how long has the property been on the market, have any offers been previously accepted by the Seller, has the price been lowered? even possibly how much mortgage the seller may have taken out on the property, etc etc). A Buyers agent can also give you suggestions such as how to reply to any issues that may have discovered after your home inspection, stating that maybe you should ask the seller to have the septic pumped or the furnace serviced if the disclosures state they haven't been done in the past year or two, what about seller paying some or all of your closing costs? do you need to sell your current home in order to buy this property?

That was all in answering the benefits of entering into a buyers agreement, now for your other questions - if your Buyer agency contract was specifically for one property then you are only bound by that contract for the purchase of that property and yes, you can move on to looking at and/or purchasing another property with another agent who would work as a non-agent or possibly even as a Seller's agent.

One other clarification regarding Agnes' response - when you are in a Buyer client relationship with an agent she states that the agent is loyal to you and only you...not exactly accurate, the agent is representing your best interests and not representing the seller, but that agent may also be showing this same property to another Buyer as their agent, and representing them..... Good Luck! and I hope I was helpful.
0 votes Thank Flag Link Wed Jun 4, 2008
Signing a Buyers Representation Agreement is a wise thing to do. It is so important that the real estate agent that is working hard to help you find the house of your deams is loyal to you and you only. Signing a Buyers Representation Agreement will give you so much more peace of mind. Buyers are inclined to discuss many financial details and family matters with an agent. For example: If you have signed a buyers rep. with that agent, he or she is ethically bound not to share anything that was disclosed by you with the selling agent. Plus, a Buyers Representation Agreement gives your agent authority to negotiate with the seller (through his or her realtor) on your behalf. If you want to play Realtor, I recommend that you take a couple of real estate classes or at least a seminar. So you will be knowledgeable of some of the do's and don'ts when it comes to using the time, patience and expertise of a Realtor. There is no such thing as signing a non-buyers agreement. You can terminated the Buyers Representation Agreement. This will release you from any further obligation to be representated by that Realtor, or you can just work with a Realtor as a customer. He or she will do the contract for you; possibly show up at closing but will not advise you. Why? Because you are not his or her client....."you are a customer." It's always a good idea to use a Realtor, one who represents you only! Signing a Buyers Representation Agreement gives you a lot of protection even if you can do all the contracts yourself. Real estate contracts are forever changing and unless you are up-to-date with the changes you can leave yourself open for financial hurt. Good Luck to on your future home purchases.
0 votes Thank Flag Link Wed Jun 4, 2008
Hi Joe,

The answer that follows this one is 100% accurate.

I would only add that the sellers of homes have an agent working on their behalf--that's the so-called Listing Agent. For you NOT to have an agent working for you puts you at a huge disadvantage when it comes to consultation, negotiation, and advocacy. Do yourself a favor and reread Shannon's answer.

Dane Hahn
0 votes Thank Flag Link Wed Jun 4, 2008
Joe
You sign a Buyer's Agreement to allow the Realtor of your choice to work as your advocate and share with you their accumulated knowledge of real estate. A professional agent is worth their weight in dollars saved in a transaction. Not to mention their experience with local real estate. When you sign a non-Buyer's agreement you effectively put duck tape on the mouth of the agent. They are not allowed at that point to do anything but paperwork for you. They are not supposed to counsel you in regards to real estate values. To be a smart and savvy Buyer you need a smart and savvy agent. Sure you can do a lot of the leg work on the internet but that is only a small fraction of what goes on - especially when you get into contracts, negotiations, inspections, financial commitments and appraisals. Personally I only work with Buyers who sign a Buyer's Agency Agreement with me. The first time out I am happy to have it cover just the houses we are seeing that day because at the end of the day I can then decide whether or not we are a good match and if I want to continue to work with them. After that we need to come to a meeting of the minds and sign the agreement. Good luck in your home search, I hope you find the right match agent for you.
0 votes Thank Flag Link Wed Jun 4, 2008
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