The agent will probably require a pre-approval letter from a lender or other evidence that you are financially qualified. If your purchase will be contingent on the sale of your existing home, a good agent will check to see if you have your home reasonably priced, how long it s been on the market and whether it s likely to sell. Most buyer s agents work on a commission. Others work by the hour or charge a flat rate. Some charge an up-front retainer fee.
All fees are negotiable.
In rural areas a 6-month contract is reasonable, although this is also negotiable. The contract can be written so that either party may cancel at any time. A thorough buyer s agent will ask you if you ve been represented by any other agents and if you re currently bound by any other contracts or protection clauses that would affect your purchase of real estate. Like a listing agent s contract, the buyer broker contract has a protection clause. After the termination of the agreement, the broker is entitled to compensation for any properties they introduced to the buyer, and which the buyer subsequently buys within a given time period.