Consumers often ask, "Why does a REALTOR . . .
- Insist I get a pre-approval letter before we look at houses? It's important that buyers be qualified to buy the house they are viewing rather than being "looky-Lous" which is an inconvenience to both sellers and the agent taking you on showings.
- Get paid so much? The commission on a listing is shared four ways: listing company, listing agent, buyer's company, and buyer's agent. When the full commission is split in four parts, each party is not getting such a huge portion. Plus, real estate agents have a wealth of knowledge and expertise that is a protection for you, the client, who may be well versed but is not as experienced as the professional agent.
- Suggest I make changes to my house before listing it? This goes back to the real estate agent's knowledge and experience. An agent's experience has taught him/her that buyers look for certain things in a home. Having those things in your home will mean the house will get a higher price and sell in a shorter time than if they don't exist.
- Require I listen to a disclosure about agency before we go looking at houses? The agent is required to disclose how an agent can represent you early in your relationship with that agent. It is Minnesota state law. Also, it is to your benefit to hear how an agent can represent you so you can make an informed choice.
- Make me sign a contract before looking at houses? IF you want an agent to represent you or work in your behalf, the contract is what forms the agent/client relationship. If you don't sign the contract, your buyer agent may actually represent the seller on some listings.
- Get all skittish when I want to use my own loan officer or an Internet loan company? Experience is the answer to this question once again. The real estate agent's experience is that unknown lenders sometimes do not get the mortgage done on time or sometimes change fees at the last minute. Working with a professional that the agent has used before is a "known" entity.
- Tell me to kennel my friendly pet during showings? Here comes that experience reason again. Your real estate agent is protecting you from liability. Your dog or cat may be friendly when you are home, but they may be vicious when a stranger enters their territory. You agent has heard the war stories.
- Tell me not to let someone show my house without an appointment? Because it's not safe! You have no way of verifying the authenticity of the person (If they proclaim to be an agent, are they?) nor of knowing if that person is safe. Allowing an agent to make an appointment to bring clients through your house protects you and your belongings as their clients are pre-approved for a loan and have been verified by their agent.
These are just a few of the questions clients may ask. Do you have others to add to the list?
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