OK, so you’re driving through a neighborhood and you pass a home that is for sale. It looks like a home you might be interested in, so you call the agent’s phone number that’s on the sign.
You tell the agent that you’d like to see the inside of the home. Usually during the conversation, the agent will ask you a bunch of questions that have nothing to do with actually making arrangements to show you the home. You get offended at the questions the “pushy” agent is asking. GEEZ, you just want to see the home! You’re not interested in getting the “third degree” questions – and you really hate pushy agents!
So why do so many agents do this??? It’s because we HAVE to!
Licensed real estate agents must abide by lots of laws that have been set up by the State licensing board. If the agent is a member of the National Association of Realtors … and can use the Realtor® brand … they must conform to the extensive Code of Ethics established by the organization. Failure to follow the State laws or the NAR’s COE can cause the agent to be fined, have their license suspended or even revoked, thereby losing their career.
So, what’s the reason behind some of the questions the agent might be asking?
- Realtors® must not work with another agent’s client. Therefore, the agent will need to determine if you have a relationship with another agent. If you are working with another agent, then THAT agent should be the one to show you the home.
- Prior to showing a home, the agent must explain “Agency Relationship”. The State requires that agents must inform a buyer about Agency Relationship (who the agent represents) and have the buyer sign a specific form indicating that this explanation was made. This form is to be signed prior to showing a home.
- Most agents require a buyer client to sign a Buyer Broker Agreement. This form essentially is a commitment by the buyer to work solely with agent and ensures the agent will be paid for their work with the buyer. If a buyer expects an agent to spend the time and money working on behalf of the buyer client, the agent will expect that same level of commitment from the buyer.
- The first step to buying a home is to become pre-qualified by a lender. This falls in the category of ‘why test drive a Lexus, if all you can afford is a Tercel’. Meeting with a lender first is necessary to know how much home you will be approved to purchase based on your financials and your down payment. Most agents will require that this step be done before they intrude on the seller with an unqualified showing or take their own time (and gas) to show a home to an unqualified buyer.
- Do you have a home that needs to sell first before you buy? Is that home on the market? In today’s market when it’s taking longer for homes to sell, it can be futile to view homes until your current home is in-contract, unless you confine it to viewing open houses or builder’s models. Same goes if you have a rental lease that doesn’t expire until 3 months or more away.
Agents work very hard for their clients, so when they ask all these questions, they’re just trying to do a better job for you while making sure they “stay legal” in the process. Don’t be offended or take their questioning the wrong way.
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