So you are thinking about buying a home and you have already read my post about selecting a real estate agent, but you still have some questions. Hopefully below you will see some of those questions asked and answered.
Can you show me homes that you don’t have listed?
- Yes! I am a licensed real estate agent and a member of our local MLS. Therefore, I can show you any home listed in the MLS for sale. I am also a member of MIBOR because I work in Brown County as well as Monroe County.
If I want to see a home I just call the listing agent, correct?
- While you can call the listing agent to see the home he or she has listed, I suggest a different approach. If you know you are going to be in the market to buy, then why not ask friends and family if they know any standout real estate agents?
- See if you can come up with a few agents to consider. You can interview agents as a buyer and a phone conversation sometimes takes care of whether or not it’s a good match.
- The top reason to select one agent to be your guide is that he or she will get to know you and do their best to make sure you get into the right home. If you cold call a listing agent we’ll assume he or she does not know you, there is no trust established, and they might not take the time to get to know what you really need.
If an agent shows me a home, does that make he/she my REALTOR if I want to purchase that home?
- Unless there is an agreement to the contrary, yes.
- If a realtor in Indiana shows you a home at your request and you decide you want to purchase that home, the offer should come from the agent who showed you the home. Unfortunately, many buyers assume they can call the listing agent to see a home and then their realtor (who did not show them the home) can write up the offer as their agent. The agent who showed the home is the procuring cause.
- When I meet a new buyer, I ask if they are working with another realtor before agreeing to show them a home to try to avoid this scenario. A great agent will have your best interests at heart should an agency issue arise.
- Just remember to call the realtor you want to work with to show you any homes.
Will I have to pay your commission?
- When you are working with a realtor as a buyer’s agent, the seller pays the commission.
- The listing agent has already negotiated the rate he/she will pay the buyer’s agent before it hits the MLS.
- Buyers can direct their attention to the home search and the price they can pay for a home will not have to take into account a fee for their agent.
Can you show me your listing and sell me your listing?
- Yes to both. I can show you my listing and represent you for the purchase of my listing. This is called limited agency (or dual agency). The real estate agent is representing both the buyer and seller.
- A consent form has to be signed by all parties to allow limited agency.
- A requirement is for the limited agent to not share ANY information that could give either party an advantage. For example, the price one party is willing to pay should not be discussed with the other party. The agent has to stick to sharing information that he/she would know if they were only representing one side of a transaction.
- If you trust your agent, I find that this sometimes really is beneficial to both parties.
- If you are not comfortable with limited agency I suggest asking your agent if there is someone else in their office you could use to represent you for the purchase.
Do I have to sign a buyer agreement?
- It is not common in Bloomington to have buyers sign a buyers agreement saying you will work with one particular realtor exclusively like it is in some other markets.
- I place a lot of trust in buyers and hope that they come to me before they start their home search so we can go over the process together. Prior to working together we go over our expectations so that moving forward we are on the same page.
I could go on and on with questions and answers. In fact, most of these questions could have much longer answers, but I am trying to keep it concise. My advice to someone looking to hire a realtor varies based on their situation and I always error on the side of caution. If you have other questions, reach out to me!