If you’re looking to purchase a property in the near future I recommend watching out for two sneaky tricks and clauses:
- They will often try to lock you into an exclusive agreement for a year and force you to pay commission on the any home you buy, even if they didn’t show it to you. I personally am not willing to sign an exclusive representation agreement and instead ask to sign the non exclusive representation agreement that only give them permission to the property.
- Next, you are likely to run into sneaky fees where the realtors charge you something hidden in the purchase contract or representation agreement called a broker fee or administration fee of usually $500. Ask them to remove it, often times they won’t even disclose this fee. I personally believe this is illegal because they are suppose to represent your interest and yet they sneak in fees that they don’t discuss nor notify you of.
Anyways, I’ve never had an issue getting them to waive the fee, and I’ve never had an issue with me opting out of the exclusive representation agreement.
Here’s the shortend version:
- Only sign a non exclusive agreement applying only to a single property.
- Tell them you want to waive the 500$ broker fee.