Homebuyer’s beware! Matt and his team at Santana Properties ask clients to sign a Buyer’s Representation Agreement.
This is a legal document in which the client is bound to pay the difference between his/her realtor’s fee and what the seller is offering.
In my case, the seller offered the buyer’s agent 2% and Matt’s fee was 2.5%, thus I had to pay the additional 0.5%.
Unfortunately, this was not explained to me in detail from the beginning. As a first-time homebuyer, I’ll admit I was somewhat naïve.
I later learned this is very unusual in real estate, since most buyers’ agents prefer to maintain the relationship with the client rather than have them pay additional fees.
And in today’s hot real estate market, realtors are making quite a bundle even with a 2% commission. (Of note, a friend referred me to Santana Properties– he did not have to sign a similar agreement when he worked with them a few years ago, thus didn’t know to warn me.) I later discovered via the MLS website, that when Santana Properties sell real estate, they frequently offer less than 2.5% to the buyer’s agent.
Seems pretty hypocritical! Furthermore, Matt never even saw the condo I ended up buying until the inspection.
It was pretty nerve-racking placing an offer on a condo that my realtor hadn’t even seen.
I also felt a lot of pressure to use Santana Properties preferred lender, but thankfully found a better mortgage rate elsewhere.
My advice- Do your homework and avoid Santana Properties.
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