Buyer rep agreement wants 2.5% on deals I source myself
Agent I've been circling for six months finally sent the paperwork. Exclusive buyer representation, 12 months, county-wide, all residential 1-4 unit. Compensation is 2.5% of purchase price or $12,000, whichever is greater, and the definition of a covered transaction includes any property I acquire during the term regardless of who introduced it.
That last part is the problem. I mail about 900 pieces a month on my own list and two of my last four closings came from that. On a $310k purchase off my own mail, that clause costs me $12,000 for a contract review and a closing coordination call.
What she's actually worth: she brought me two pocket deals last year before they hit the MLS, one of which I closed at $248k and it appraised at $291k after $34k of work. She reads a rent roll properly and she pushed back on my ARV twice when I was high. She also has a lender and two GCs who answer her calls at 7pm.
Where I am unsure: I don't know if she'll actually walk if I ask for a carve-out, or if the brokerage even lets her sign a modified form. Since the settlement changes, written agreements before showings are standard practice at most brokerages now and the terms vary by brokerage and state, so I can't tell how much of this is her and how much is her broker's template.
Decision in front of me: sign as written for 12 months, ask for a self-sourced carve-out with a flat $3,500 fee, or shorten the term to 90 days and see how many off-market deals actually show up in that window.