Very informative post so I had to repost it.
Is It Wrong to Work With More Then One Realtor?
Home buyer: " Is it wrong to work with more then one Realtor at the same time? I'm trying to follow proper home-buying etiquette. My friends tell me it's O.k. as long as I keep track of which realtor showed which property. That way, if you end up purchasing, the correct realtor is compensated. I've not signed any exclusive contracts with any realtor.
Is it OK as long as I make sure both Realtors realize I'm working with another agent as well? Some people have told me that Realtors know customers might be working with others, and it's not a big deal."
Isn't that a good question? As a Realtor, I definitely have a 'biased' perpective and answer to that question. But since the question involves 'working with a Realtor' - who better to answer it? :)
1.)Yes - if you're working with Realtor's in two different Cities - where each has their own area of expertise! Go ahead and Use 2 Different Realtors! As a matter of fact your local Realtor can probably refer you to a Realtor in the city you're moving to.
2.)If you are Selling Your Home and Buying again - it is possible to work with a Listing Agent to sell your home and a Buyer's Agent in the purchase of your new home. Often these 2 Realtors can even be a part of a team where they tag-team each other.
More importantly however, is the Buyer asking about this from a legal or moral/ethical perspective?
First of all I want to say that Real Estate Associations in each Province and State have their own rules. There used to be 'threshold' rights in British Columbia. This is where the Realtor who introduces you to the house - is the Realtor who gets the commission. However it's not so cut and dried anymore.
If you signed a Buyer's Agency Agreement - then you are under 'contract' to work with that and only that Realtor. If for some reason you choose not to - then your new Realtor may very well end up getting paid by YOU or not at all! And YOU will be breaching a contract to work with another agent. This can get ugly ... and no one wants "ugly" ...
However if you have No Contract - Let me Tell you You some Reasons Why it is NOT a good idea to work with more then One Realtor!
Home Buyers often call on signs and advertisements and talk with MANY real estate agents until they find a home that they want to buy ... and then just work with the listing agent to buy the home. Sometimes this is not a good idea, as the home buyer may not get the best deal if the listing agent is looking out for the best interest of the seller ... not the buyer.
Or the Buyer may work with several different Buyer Agents to see who will find them the best deal. This is ALSO not a very good idea for a couple reasons ...
1. First of all all Agents have the same access to the same homes for sale via the local MLS. They all have the potential of finding the "best deal".
However Agents only get paid when they successfully find a home for a home buyer ... and it closes. All the up front work of finding the home is done without pay and in good faith that the home buyer that they are working with is using them to represent them. If a home buyer is not disclosing that they are potentially working with other agents, then the Buyer Agent does not have the ability to fairly weigh out the situation and determine whether or not they want to work with that home buyer.
There Are some exceptions though:
- If a home buyer wants to work with more than one agent (for whatever reason), the right thing to do is to NOT sign a Buyer Agency Agreement and to notify each agent of this decision.
- If a home buyer is considering buying different types of property or different areas, they may consider hiring an "expert" for each area.
- If you're still not sure and don't know if you will like being 'married' to just one agent - Consider signing a week long Buyer Agency agreement - If after that week, the agent is not a good fit, then the home buyer can move on and find a new agent. Win Win right?
Finding ONE agent to work with is generally going to be your best bet.
If you or someone you know is thinking of Buying or Selling property in Cultus Lake, Chilliwack, Hope, Abbotsford, Langley or anywhere in the Fraser Valley Area of B.C. - or if you would like more information please give Liz Moras of Landmark Realty Chilliwack a call at- 604-799-0459 or e-mail at email@example.com.