Calling all real estate experts

DH and I have been working on buying distressed properties in our area to renovate and sell or rent.
We don't have a real estate agent that we always work with. I just contact the listing agent on each property and work with them.
So I found a new listing, it's a short sale that is in really terrible shape and the property is listed for 100k but it's really worth about 80k as is. I know thus because I have recently purchased other comparable properties in this neighborhood.
I emailed the broker thru MLSLI saying I would like to see the property( no interior pics online). He responded with a buyers agreement saying that I would pay him 4% or $25,000 whichever is HIGHER. My DH spoke to him and said we wanted to see the property and would consider signing his agreement if we were going to make an offer.
Of course there would need to be a big discussion prior because I'm not paying anyone $25,000 commission on an $80,000 deal. That would be insane.
So today after I left him a voicemail with the times I can meet him, he sends me an email saying please send prof of funds and sign the agreement.
Is this even legal? Who the eff is this guy to try to get me to sign his agreement and show proof of funds( which I would be happy to do) when he hasn't even met me or shown me one property!
I'm now going to reach out to the last sellers broker we worked with to see if she can show it to me!
Those that know the rules, what do you think about this guy?

Re: Calling all real estate experts

Re: Calling all real estate experts

I handle short sales, and what you are saying doesn't make sense. The listing agent represents the seller, so he can't then enter I to a buyer representation agreement on that property without becoming a dual agent (which requires consent of all and is a complicated scenario). So rather than asking for a buyers representation agreement, the listing agent should be simply disclosing that he works for the seller, and handbag you as a buyer acknowledge that disclosure.

Re:Commission - like any other sale, the listing agent 'so commission would come from the seller. There are no proceeds for the seller with a short sale, but the bank who holds the seller's mortgage and approves the deal will agree to pay the Realtor's commission (and it's typically generous).

So I would definitely push the listing agent to explain why, if he represents the seller, that he is asking you to sign a representation agreement.

Are you sure he was asking for a representation agreement and it wasn't just the NY state agency disclosure form (which a realtor is required to present to say consumer he is in substantive contact with) stating who he represents and asking you to sign to acknowledge disclosure? A lot of people get nervous when asked to sign, but it's a standard, required form and doesn't commit you to anything. But he's definitely within his rights to ask for a preapproval or proof of funds before showing the house.

Calling all real estate experts

Thanks Christine,
I know what the NYS required form looks like, we've signed that a bunch of times. What he emailed us is completely different, it's unlike any form I've ever been asked to sign and we've had offers or closed on a handful of properties in the last 12 months.
As it turns out we are no longer interested in the house because a friend from our beach club lives near it and has been inside it recently and told us it's a hoarder house and has mold and foundation problems because she knows the seller.
We emailed this agent to say we aren't interested and he's called and emailed each of us ten times saying "call me"
Very shady!
We are specifically looking in eastern Suffolk county in a small area otherwise I would certainly work with you Christine!
Thank you