The first thing an agent will likely talk to you about is buyer agency and ask you to sign a buyer’s agency agreement. This can be either an exclusive or nonexclusive agreement.
Exclusive agency means you agree to work with that agent only for an agreed on period of time. For example, if you happen to drop in on an open house and fall in love with it, you’re bound by the contract to get back to your agent to write up an offer. The advantage of an exclusive agreement is the agent will be motivated to work harder for you, knowing his efforts won’t be wasted. Still, it’s a good idea to have in writing that you can cancel the agreement any time by giving written notice. You’ll still be bound to that agent for any properties he has previously shown you. But, you won’t be locked in to an agent who’s not doing a good job. Before you sign an agency agreement, make sure the time frame for the agent getting a commission if you buy a home he shows you is not more than 60 days. Some agents like to write in six months, but that’s excessive. If an agent is doing a good job for you, then this paragraph won’t be a problem.
Checking the nonexclusive option means you are not bound to that agent, but you must use him on any properties he has shown you. You can sign a nonexclusive agreement with as many agents as you want. But that can be counterproductive, because none will take you seriously. It’s best to go exclusively with one agent you like who can do a good job for you. Remember, loyalty is a two-way street.
Exclusive agency means you agree to work with that agent only for an agreed on period of time. For example, if you happen to drop in on an open house and fall in love with it, you’re bound by the contract to get back to your agent to write up an offer. The advantage of an exclusive agreement is the agent will be motivated to work harder for you, knowing his efforts won’t be wasted. Still, it’s a good idea to have in writing that you can cancel the agreement any time by giving written notice. You’ll still be bound to that agent for any properties he has previously shown you. But, you won’t be locked in to an agent who’s not doing a good job. Before you sign an agency agreement, make sure the time frame for the agent getting a commission if you buy a home he shows you is not more than 60 days. Some agents like to write in six months, but that’s excessive. If an agent is doing a good job for you, then this paragraph won’t be a problem.
Checking the nonexclusive option means you are not bound to that agent, but you must use him on any properties he has shown you. You can sign a nonexclusive agreement with as many agents as you want. But that can be counterproductive, because none will take you seriously. It’s best to go exclusively with one agent you like who can do a good job for you. Remember, loyalty is a two-way street.
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