Is this a normal contract to sign with a buying agent?
Our buying agent (we never worked with one before. We bought a house 7 years ago and went through a Realtor that time) is saying that we have to sign a contract stating that they get 6% commission on whatever house we buy. That gets split 50% with the mortgage company and then he, the buying agent will give us part of his commission.
*side note. We first contacted a local mortgage company to see where we stand with buying a house (we haven't owned for a few years. A year after we bought our first house we accepted a promotion to another state and have been promoting up every year to a new state. Because of our constant relocation we only rented places. Now we are staying place for a long time, so we want to buy.) The mortgage company we went to is the one that recommended we go to this buying agent.
Researching it 6% sounds about normal. However what I'm reading is that the seller's agent gets the 6% commission it then gets split 50% with the buying agent and then, 50% of what the seller is left with gets split between the mortgage company.
So what I'm afraid of, is that he is asking us to sign a contract stating that they get 6% and this is on top of whatever the seller's agent is already getting and therefore in order for someone to accept an offer from us they have to also accept those terms.
The contract that he wants us to sign also says that we can not buy a house FSBO or one that has to be financed by a different bank. Also if we do not buy a house through them we are still responsible for paying their commission. If we go to open houses without our agent we have to go to the seller's agent at that house and tell them who we are working with. We cannot talk to another agent without disclosing who are agent/company is.
My husband just explained this to me last night. I knew he set up an appointment to sign paperwork on Wednesday. We both thought it was weird since we never had to sign contracts with our previous Realtor but was thinking maybe it had to do something with buying in this state. We both do not feel comfortable with this at all. Is this normal for what any of you had to do?