You’ve decided to buy a house.
You’ve been told that it would behoove you to work with a REALTOR because the process of buying a house is very complex.
- know a REALTOR – or
- have been referred by a family member, friend, or work associate to a REALTOR – or
- you have connected with a REALTOR as a result of that REALTOR’s marketing (Open House, mail, internet, billboard, radio/TV advertisement)
This REALTOR talks with you and learns your wants and needs and then refers you to a lender to initiate the loan process to “Pre-Qualify” or “Pre-Approve” your ability to purchase.
Now you know “what you can afford”, so you and said REALTOR begin looking at houses.
THIS is FUN!
Excitement builds as you see the possibilities . . .
Yesterday, you wanted to see this great looking house that just came on the market, and the REALTOR “with whom you were working” was booked solid with appointments and was not able to show it to you, but lucky for you, the house was to be Open on Sunday . . . so you go to the Open House on that beautiful Sunday.
You fell in LOVE!
THAT is your DREAM HOME!”
Of course, you cannot hide your enthusiasm, and the REALTOR hosting the Open House is well aware.
She asks if you are pre-qualified for financing and is exuberant upon hearing your affirmative response.
She asks: “Are you working with a REALTOR?”
Of course, you say: “Yes!”
Her follow up question confuses you: “Do you have an Exclusive Buyer Representation Agreement with this REALTOR?”
You’re not sure . . . Don’t remember the REALTOR with whom you are working mentioning that.
The Open House host sees your puzzled look and asks: “Did “your REALTOR” have you sign anything before agreeing to “work with you”?
Hmmmm . . . No!
Well then . . . We just established that you are an “unrepresented Buyer” because establishing client agency requires an agreement in writing.
This REALTOR might then have said something to the effect that: “This house will sell TODAY! I can “write up an offer with you and can present it to the Seller after the Open House.”
Next thing you know, you’re committed to a deal that you don’t fully understand . . . AND you’re now wondering if you paid too much and who is going to shepherd you through the remainder of the process.
This is a hard lesson you don’t have to learn the hard way . . . Protect yourself by signing an Exclusive Buyer Representation Agreement with a REALTOR you know, like, and trust BEFORE you start looking houses . . .
BECAUSE . . . In the world of Buying a house, there IS such a thing as love at first, and you deserve to be prepared and represented when you find THAT house.
Just because a REALTOR is willing to show you house does NOT mean that REALTOR represents you.
After thought . . . Most REALTORS would not “capitalize” on this scenario of unrepresented buyers who are “working with a REALTOR” . . . but some will.