Great to have another non-biased third party in Jefferson. Please read all of this as this is what we feel you need to know:
1. As Jefferson stated, your loan approval is good with Wells REGARDLESS of the agent you use.
2. Do you have direct contact with Wells Fargo? Do you know how the Mortgage Broker is being paid?
Just to be sure, Mortgage Brokers are paid one of two ways:
A. The lender (Wells Fargo) has a referral fee that costs you nothing
B. There are Points built into the loan to pay the Mortgage Broker, you pay for this in closing costs.
C. If you are not talking to Wells, have the Mortgage Broker supply a contact name.
D. If you are talking to Wells, ask how the Mortgage Broker is being paid
3. A Real Estate Broker is the person accountable for the agents in their office legally, ethically and for their training and development. They are accountable for all aspects of the transaction as well. Each agent is an independent contractor with their Broker and is responsible for the transaction and keeping their Broker informed of material facts. In the transaction, the Escrow company pays the commission to the Broker, who keeps some of the dollars and then pays the agent. Many agents do not keep their Broker informed and many Brokers require an extensive transaction checklist to make sure the legal requirements of the transaction are being met.
4. Now we are in the gray area of ethics and training and development, ie: depth of knowledge and how to apply that knowledge. This is where I will disagree with Jefferson for the following reasons:
A. Most Brokers are good people who care about the client first. In our opinion, the time to talk to the Broker to smooth this out or assign another agent from their office has passed UNLESS you want the house you are currently pursuing??? If so, this is the best solution, just DO NOT sign another Buyer/Broker agreement.
B. If you want to pursue a different home, get a new agent. Here's why, lets say you go to the Broker, and they assign another agent. The person they assign will know your current agent and they will talk. Most likely, you will take the blame in their discussions rather than the old agent accepting responsibility.
C. If you go the Brokers office, you can run into your old agent. Awkward for you!
5. Best to get a clean start, however, this is where it gets tricky:
A. Given your current agent found and showed you the house, their Broker (and the agent) are due the commission under California law. Crazy I know, yet true.
B. If you change agents, the old Broker still gets paid and it can put your new agent in an ethical bind if they do not know all of the facts.
C. If you go with a new agent, tell them everything. Their Broker can call the old Broker and work out the dollars to their satisfaction for that house, or any house the old agent showed you. THEIR COMPENSATION IS NOT YOUR ISSUE. Make them work it out and inform you of the outcome.
Lastly, do not concern yourself with the new agent, new Broker question. What we have said above should give you enough info to move forward. You can also click on our photo and e-mail us if you want to take the discussion off line. Some people here have done so and appreciated the independent communication. It is completely up to you.
Do not forget, a real estate purchase should be about your wishes being implemented by, and advised by, a knowledgeable agent who has YOUR interests first.
Best of luck,
Mark & Kari