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 dont 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, Im not going
to buy this house if I cant 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 wont 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.