The past few years have definitely been a sellers’ market. Many homes are under contract within the first few days of a listing being active, which requires buyers to be flexible and competitive when it comes to showings and putting offers together. A trend realtors are seeing right now are buyers wanting to use multiple real estate agents. The thought is that by using multiple agents, they will see new or different inventory, and possibly schedule a showing or submit a bid faster. This isn’t true.
The Facts
All real estate agents have access to the same property listings. As long as the listing has an MLS/BLC number, all agents in Indiana will have access to the same information. It’s possible a realtor may hear of a new listing before other agents, but they are legally bound to not approach that seller with a buyer until the listing is active. Realtors are licensed by the state and any breech of the license can result in fines, a suspension or revocation.
It’s common knowledge that realtors are paid via a commission, but that commission doesn’t come through until the sale is complete. For a realtor to show a potential buyer a property involves time and coordination with other realtors. The agent is not compensated for their time or expenses until closing. Trying to use the time and knowledge of multiple buyer agents creates an unprofessional situation.
Buyers Agreement
When it comes to buying real estate, the realtor is the buyer’s representative to the seller or seller’s agent. This person is the primary point of contact for setting up showings, researching markets, answering questions about listings or the sales process, and completing and submitting all necessary paperwork to the proper parties so the closing can happen in a timely manner. Researching listings, making appointments and filing paperwork takes time, which is why real estate agents will often ask buyers to complete a “Buyer’s Exclusive Agency Contract” before moving forward.
This agreement is a contract between the realtor, the broker and the buyer. There are several reasons this agreement is important. First, it outlines how much the realtor receives in commission. Second, it describes how the agent will work to protect the buyer’s personal information and work honestly on their behalf. Third, it outlines the buyer’s responsibilities, such as seeking professional counsel regarding financing, inspections and other matters. Agents can provide buyers with referrals to reputable companies for these services.
As a buyer, the best ways to learn about new listings and stay ahead of the competition is to have an open and honest relationship with a real estate agent. Properties arrive on the market at all hours of the day, and an agent can set up the proper alerts, texts or email notifications of new listings.
Dawn McClara is owner of Whalen Realty Group, at the F.C. Tucker Company, and has worked in residential real estate for more than 17 years. She’s a licensed realtor, broker, is a member of MIBOR and a Homes for Heroes preferred realtor. She can be reached at dawn.mcclara@talktotucker.com.