Understanding Buyer & Seller Agency
Common Myths & Misconceptions
#1 - I'ts pretty simple to undertand the "Listing Agreement"
The house is listed, a sign is in the yard, the home is in the MLS
Buyers who are working with agents are looking at homes and add the property
to the list of homes for viewing.
#2 - The agent who has the house listed, cooperates with other agents thru the MLS
(Multiple Listing Service). This is how it is possible that a Buyers Agent
Can assist buyers without charging the Buyers a Fee.
The Listing Agent has the home listed. Seller pays commission.
The Listing Agent agrees to share his / her commission with buyers agents.
#3 - WHY DO AGENTS ALWAYS ASK "Are you Working With An Agent?"
TN Law requires agents to work under contract.
Just like the listing agent has a contract with the seller,
Buyers should also have a buyer agency agreement with their Real Estate Agent of Choice.
#4 - WHY DON'T THE LISTING AGENT SHOW ME THE PROPERTY?
Don't they get paid either way?
This is the BIGGEST - Common Misconception.
Buyers think that the listing agent should show the property
and they can get their Buyers Agent to write the contract
It just doesn't work that way.
If a Buyer is already working with an Agent, the Buyer should not look at properties without their agent.
Don't forget how the Buyer's Agent gets paid ~ Thru cooperation thru the MLS.
If the buyers agent expects the listing agent to do their work for them,
that's not exactly what we call cooperation.
or
Buyers think that they can save money by not using a Buyers Agent.
This is NOT CORRECT
The Buyer does not save money by NOT using a Buyers agent
Instead, the listing agent earns MORE money by not having to share their commissions
Seriously - Think about it - Why would an agent give their money away if they dont have to?
#5 - WHY DO SOME AGENT'S SHOW THEIR LISTINGS WHEN BUYERS CALL REGARDING ADVERTISING?
This is how agents get to know New Buyers
Agents are willing to work with new buyers if the buyer is NOT already working with an agent
A listing agent does not mind meeting a "New Buyer" at a property for 2 reasons...
(a) The listing agent is showing the listing to an "unrepresented buyer" for potential purchase.
(b) The listing agent has an opportunity to work with a "New Client / Buyer" to find them a home
Think of it like an Attorney.
If you were inured in an auto accident, you can only pick 1 (one) attorney to represent you.
You can intereview attorney's. That is why the attorney's will give you a FREE CONSULTATION appointment.
After speaking with a few attorney's, you have to choose who will repreent you.
When a listing agent agrees to show an "Unrepresented Buyer" a few properties,
they are seeking the opportunity to work with a New Buyer and also
allowing the New Buyer an opportunity to Meet with the agent
to consider working Exclusively with the Agent.
The Agent might be willing to show a few properties while they get to know one another
and the buyer can decide whether or not they want to sign a Buyer Agency Agreement
Just like a person can fire their attorney, the same goes for Agents.
If they Buyer has asked the agent to find certain properties within their search criteria
and the agent does not provide this information while the Buyer seems to be finding properties
within their search criteria weeks later only to find out the property has already sold,
this is "justifiable" reason to fire the agent.
This can be accomplished by sending the agent notification. Either by phone call, email, regular mail, etc.
Interest Rates are at an
All Time Low
You can own a home - Cheaper than rent
If you have had a Foreclosure over 3 years ago,
chances are very good that you can qualify to purchase a home
at today's low rates with little or no down pmt.
You are considered a 1st Time Buyer if you
have not owned a home in the past 3 years.
Rural Housing has 100% financing
Home
