How to handle this situation when you want to change your buying agent after 3 months?

How to handle this situation when you want to change your buying agent after 3 months?

I have been looking for a house for 3 months now as a first time home buyer. My buying agent has shown me about 10 houses, has done about 5 CMA for me, has written 5 offers for me (none converted in sale) and explained alot of things during this three months.

now, I want to change my buying agent because I realized there is better buying agent in my area (the other one is kinda far) and I am thinking to go make the listing agent my buying agent to get a better deal in this hot market where every house is getting 20 offers.

My question is: Should I compensate him for this time? How much? I dont want to burn bridges with him.

8 Answers

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  • G R
    Lv 7
    1 month ago

    If you signed an agreement with your current agent read what it says as far as having to pay them. If you didn't sign anything and or the contract doesn't say anything you don't owe him anything. He is in Sales and doesn't get paid unless he sells something, that is how it is. It is just business., but 3 months isn't very long and if offers are falling through that isn't necessarily his/her fault.

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  • 1 month ago

    It sounds like you officially hired him. You cannot get away with not paying him. When you purchase a house, he will get his commission first, then whoever you hired after him. It is going to cost you double.

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  • 1 month ago

    He is not a buyer's agent unless you have a signed contract with him to pay him yourself when he finds you a house. You are only working with him and can terminate that arrangement at any time. He cannot legally be compensated by you. He will be compensated by the seller of the house he finds a buyer for.

    You can work with a listing agent on a house you want to buy, if you want to, but do not think that you will get a 'better deal'. A listing agent is a fiduciary for their client, the seller. If you don't know the meaning of the word, look it up. It is the listing agent's fiduciary duty to get the seller the best deal possible, not a buyer the best deal possible. A buyer's agent that you pay a commission to, who receives no compensation from a seller, is your best chance of getting a better deal, but in a market where you are up against that much competition, even that won't be much help. Money talks.

  • 1 month ago

    You don't have to compensate him, but if you signed an exclusive agreement with him you can't use someone else until it expires. Using the sellers agent is really not a good idea.. they work FOR the seller & are trying to get the highest price FOR the seller. Sounds like your agent is allowing you to make very low offers if you've lost that many homes in such a short time. Good luck!

    Source(s): Mortgage lender 33 years.
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  • 1 month ago

    If the listing agent also acts as your buyers agent the chances of you getting that particular property are greatly increased.   Why, because if you making an offer through him and if it is accepted he gets both sides of the commission.  Makeing double the amount.

    Sounds like you were out bid on the other offers you made.  By using the selling agent he can give you many insights (hints) on what the seller wants and needs to accept an offer.  And he can push your offer for acceptance and/or advise you that your offer is insufficent compared to other offers.

    If you have a Buyers Agent Agreement that has not expired it would be a mistake to make an offer through another agent because in the agreement you agreed to use that agent for a specific amount of time and could be personal liable for a commission.

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  • 1 month ago

    Using a listing agent as a buyers agent WILL NOT get you a better deal!  Why weren't your previous offers accepted?  As a first time buyer you're probably going with FHA financing and in many cases the buyer asks the seller for financial concessions.  In a hot market that won't work.

    • Glenn S
      Lv 7
      1 month agoReport

      May not get a better deal but increases the chance of their offer to be accepted by the buyer.  After being beat out several times by better offers the buyer tends to get tried of the process and is willing to pay more of a property.

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  • 1 month ago

    It is never a good idea to have the listing agent as your buying agent (dual agent).  They are required to place the interest of the seller above that of the buyer.  If you submit an offer with a dual agent, you will sign a form that you agree to this.

    If your issue is that your market is so hot that you can't close anything, you will need to change your buying style:

    - if you are planning an FHA loan or other government backed loan, you are better off getting a conventional loan

    - increase your downpayment

    - improve your offers

    Unless the agreement you signed includes a fee for working with you, you do not need to compensate the current agent

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  • 1 month ago

    I would suggest talking to the agent you are considering first. Real Estate agents get pretty good commissions when they do sell a house but not every potential buyer ends up buying a house. That is part of the job. My guess is that the new agent will not suggest compensating the one that was unsuccessful.

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