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Visiting Open Houses or Model Homes can limit your Options

For Home Buyers Only

What you must know:

This warning applies to you if you visit open houses, model homes, builder models, home tours, or the Parade of Homes, or contact any Realtor, real estate agent, builder, builder's agent, model home host, or builder salesperson.

Avoid any direct contact with builder representatives or Realtors, such as viewing a home with a Realtor present, because that eliminates your option of having independent representation. Two rules that govern the real estate industry are important to understand, especially if you visit open houses, builders models, model homes, the Parade of Homes, or home tours:

Rule #1: You don’t get to choose.

The real estate industry has rules of representation that serve the large real estate companies’ interests, not your interests as a consumer. These “procuring cause” rules ensure compensation for the agent who was present the first time the consumer sees the property. Who you want to represent you is not considered by procuring cause rules. You may think “hey, I’m not going to buy this house if I can’t choose my representation,” which is always your option, but not buying a home that fits your needs is emotionally difficult. These rules may seem unbelievable, but they have been used to deny independent representation to consumers for years.

Rule #2: You won’t be warned or notified.

Realtors and builder model representatives are not required to notify you of the representation rules, or any other warning that you are losing your representation option. Some Realtors may ask if you are represented, but they are not required to ask. Many Realtors ask you to sign a guest book, register, or even enter a free drawing. The Realtor uses these documents for two reasons:

  • to prove you were at the model/open house so the Realtor can increase their commission, and
  • so they can call you at home and persuade you to buy a home with them.

How to preserve your representation options.

You must notify the Realtor immediately upon entering the open house/model that:

  • you are being represented by an agent, and
  • the agent told you about this property

Example of what to say to the open house agent

"I am being represented by another Realtor, who told me about this property. Do you mind if I walk through?"

Professional Realtors will let you walk through the home without a problem or questions for you. The Realtor may still request that you register. Make sure if you sign anything that you write “referred and represented by The Home Buyers” by your name. If you are uncomfortable with the agent or the surroundings, remember that The Home Buyers can set up a private showing at a convenient time. Just write down the address and contact us.

If you like the house.

Contact The Home Buyers immediately. For urgent matters, call 952-920-2999.
















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