Expert: Karyn Foley - 12/29/2008

Question
Hello Karyn,
We are currently relocating to MA from PA and have been working with several realtors as I feel they tend to work more deligently knowing there's competition for our business. They all seem to want us to sign their exclusivity agreements, which I politely decline and have them write up an agreement to the particular property which we are interested in. One realtor found us a property and we put in a bid after signing an agreement in our usual way, with the address of that particular property and we gave them $500 to hold in escrow as good faith money for that property. Another property also came up, we had looked at it with several realtors as one ( not this one ) didn't do anything except accompany us at a distance, not asking any questions whatsoever. So we went back to the realtor we had a bid with on another property in order to place a bid on this 2nd property. We were back in PA at the time so she sent us a packet on the 2nd listing, which we signed and sent back. Now we found a 3rd property, a fsbo. We spent 3 hrs with the fsbo owner, and worked things out. We are only pre-approved for a certain amount and this property is really pushing our upper limit. We asked our realtor what she would charge to do a title search on the property, as she had worked on showing other properties ( mainly her listings ) for us and I wanted her to get something out of all this. That's when we found out that instead of typing in the property address on the 2nd propertys' exlusive rep contract, she wrote in the county, which also includes the fsbo we found. All the other paperwork in the packet for the 2nd property had the specific address. I really feel this was underhanded and I can no longer trust this person. With her 3%, we will be hard put to afford the fsbo. Another catch, the realtor did not date the contract. Is there a way out of this? Your help would be greatly appreciated, thank you.
Michael Kline

Answer
Dear Michael:  Ethics and laws differ from area to area, and I am in California.  However, you are the type of buyers that usually end up with these questions and problems.  It makes no sense to work with several agents, especially in a market like this when there is lower inventory, and during this season when activity ebbs.  With limited number of appropriate homes available for buyers, it would only make sense to surround yourself with multiple agents if you were looking in different, far reading, areas.  Real estate agents, like most people who work in service professions. give their priority to those clients who are specific, loyal, and agreeable.  If there is one great home, and several buyers from which to choose, an agent would start at the top of their list and work their way down to you at the end.  You are too busy confusing yourself.  No need to sign a broker-buyer agreement, but you should concentrate on one property at a time and give that one your all.  FSBO properties can be problematic, and if you enter into an agreement with one, you should either hire an agent to work for just you and not the other party, or go through a real estate attorney.  Too many issues, disclosure rules and regulations, and so forth, to handle on your own.  You could end up costing yourself more than it would entail hiring an agent.  I would strongly suggest interviewing agents and companies that specialize where you want to live, and try to pick out the agent with whom you have a rapport, whom you trust, and also has a history of success in the neighborhood of your choice,  Also, get recommendations from friends and associates.  Then, start all over with one home at a time, as suggested.  A buyer does not have to buy; if your contract or agreement is valid, then call a real estate attorney and get the necessary real estate advice.  You should not ask a legal question of any one other than a lawyer;  real estate agents cannot "practice law without a license".  And you, are playing real estate agent as well as buyer, and you don't have a real estate license.  I can agree with your wishing to limit your expenses, and you are making a major investment.  You should have excellent representation; thus, you will end up making out a great deal better than if you were to go at it alone.  The seller pays the commission.  And, if you do not have an agent, the seller mentally deducts that commission anyway, so there ends up really being so savings.  Think of how much a bad deal will cost you in the law run.  Please, get a handle on your
emotions, and go slowly and with help and with knowledge so you can understand the process.  You are buying a home, it deserves the best help you can obtain.  Good luck,
Karyn Foley