6 Reasons NOT to Call the Realtor on the Sign

Posted: September 13, 2013 in Buying, Uncategorized
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Honey Stop the Car!

You just arrived at Fort Campbell and are driving around neighborhoods looking for homes.  Or maybe you have been living on post and you have just decided that you might want to look into buying.  You come across a beautiful house that looks like everything you might want, except there is one little problem… You can’t get in to see it.  Not to worry, there is a Realtor® and contact number right on the for sale sign in the front yard.  You can just call them to let you in, right?  A few things to consider about that…

The FOR SALE sign.  It has a name and a number of a Realtor®.  Who do you think that Realtor represents?  You and everyone else who happens to drive by and call?  Or the person who is trying to sell the home that has the for sale sign in the front yard?

Let’s start with a few definitions from the Tennessee Association of Realtors® (TAR) form F1(b), Working With a Real Estate Professional.  In the state of Tennessee, there are a couple of different agency types; designated agent, dual agent, and facilitator will be our focus.

Facilitator/Transaction Broker.    The Licensee is not working as an agent for either party in this consumer’s prospective transaction. A Facilitator may advise either or both of the parties to a transaction but cannot be considered a representative or advocate of either party. “Transaction Broker” may be used synonymously with, or in lieu of, “Facilitator” as used in any disclosures, forms or agreements. [By law, any licensee or company who has not entered into a written agency agreement with either party in the transaction is considered a Facilitator or Transaction Broker until such time as an agency agreement is established.]

Agent for the seller. The Licensee’s company is working as an agent for the property seller and owes primary loyalty to the seller. Even if the Licensee is working with a prospective buyer to locate property for sale, rent, or lease, the Licensee and his/her company are legally bound to work in the best interests of any property owners whose property is shown to this prospective buyer. An agency relationship of this type cannot, by law, be established without a written agency agreement.

Agent for the buyer. The Licensee’s company is working as an agent for the prospective buyer, owes primary loyalty to the buyer, and will work as an advocate for the best interests of the buyer. An agency relationship of this type cannot, by law, be established without a written buyer agency agreement.

Disclosed Dual Agent (for both parties). Refers to a situation in which the Licensee has agreements to provide services as an agent to more than one party in a specific transaction and in which the interests of such parties are adverse. This agency status may only be employed upon full disclosure to each party and with each party’s informed consent.

 Designated Agent for the Seller. The individual Licensee that has been assigned by his/her Managing Broker and is working as an agent for the Seller or property owner in this consumer’s prospective transaction, to the exclusion of all other licensees in his/her company. Even if someone else in the Licensee’s company represents a possible buyer for this Seller’s property, the Designated Agent for the Seller will continue to work as an advocate for the best interests of the Seller or property owner. An agency relationship of this type cannot, by law, be established without a written agency agreement.

Designated Agent for the Buyer. The individual Licensee that has been assigned by his/her Managing Broker and is working as an agent for the Buyer in this consumer’s prospective transaction, to the exclusion of all other licensees in his/her company. Even if someone else in the Licensee’s company represents a seller in whose property the Buyer is interested, the Designated Agent for the Buyer will continue to work as an advocate for the best interests of the Buyer. An agency relationship of this type cannot, by law, be established without a written agency agreement.

So is your TN real estate agent your loyal advocate?  By legal definition, not until you have both signed a Buyer Representation Agreement.  According to the Tennessee Association of Realtors® (TAR) Consumer Guide to Agency Law in Tennesee, “Once you have signed a Buyer Representation Agreement, this contract obligates your agent to be your loyal advocate and to promote your best interests above all others in the negotiation and closing of a successful purchase.”  As reported in the 2012 National Association of Realtors® (NAR) Survey of Home Buyers and Sellers, “59 percent of buyers working with real estate professionals had a buyer representative arrangement.”

Now you may be wondering, “What exactly is a Buyer Representation Agreement”?  In simple terms, a Buyer Representation Agreement details my duties to you as your agent, yours to me as a buyer, and that we mutually agree to work with each other.  I agree to work as your representative, and you agree to be represented by me.  It also specifies things like the length of time that the contract is good for, what type of home you are searching for, and the sources used for the search.  You can view the entire document here: EXCLUSIVE BUYER REPRESENTATION AGREEMENT (Designated Agency)

Now that we got the contractual stuff out of the way, onto the nitty gritty.

6 reasons NOT to call the Realtor® on the sign:

1.  Buying a home is an emotional process.  It ranks right up there with getting married, and having a baby.  As an agent for you as the buyer, I can offer an unemotional perspective.  I can guide you to statistics regarding the trends in the market, the schools, and different parts of town, especially if you are not familiar with the area.  I can give you ideas of things to consider in the long term and help you decide things like Tennessee vs Kentucky.

2.  My services to you as a Buyer Representative are practically free.  The commission percentage is agreed upon between the seller and the selling agent.  Generally, the selling agent will agree to split that commission with the buying agent, so you my friend, are off the hook!  All of my expert assistance, with no money down!

3.  All of those Realtors® that you have called from the signs in the yard of the homes you want to see will probably bug you endlessly until you buy a home from them or enter into an exclusive agreement with another Realtor® and tell them to BUG OFF!

4.  There is an extremely HIGH probability that the Realtor® on the sign represents the seller and their best interests first and foremost.  Of course they want you to buy that home from them, and then they don’t have to split the commission!  So are you going to rely on that seller’s agent for advice and guidance?  There are circumstances when dual agency is appropriate, but I assure you that you will be fully aware of those details if you work with me, and our business relationship will be disclosed in writing.

5.  You may feel like you are “in the spotlight” and enter into an agreement that you are not able to get out of without doing your homework first.  Ask around, search the internet, and choose from the 703 Realtors® registered with the Clarksville Association of Realtors® to find the one who is best for you.  You don’t have to choose the first one you come into contact with… UNLESS it is me, because you’ll love me and you won’t want to work with anyone else!

6.  Finally, and most importantly, you are always supposed to call me first!  (Haha, that was funny)  But seriously, call me and I will go above and beyond for you because I love what I do, and I represent my buyers loyally – (931) 436-6765.  Not only am I am licensed Realtor®, but on a personal level, I’ve been there!  I’ve made Permanent Change of Station (PCS) moves three times with my family.  I’ve flown into areas that I have never before seen in my life and didn’t know a soul.  We’ve bought three homes and have gone from Military Homeowner to Investor.  I can show you any home listed on the Multiple Listing Service (MLS), not just the homes that are listed with my company.  I will be like your own personal assistant, saving you time, helping you to navigate the housing market, drawing up paperwork, and negotiating on your behalf.  Isn’t it better to have one go-to person that can show you any property and answer any questions, versus having to track down a million different Realtors® from a million different companies (ok, maybe not a million), and try to keep them all straight?

In closing, when we speak of the Buyer Representation Agreement, I offer a rare option.  If you decide you just don’t like me, and you are ready to break up with me, even though I might go home and cry a little, as long as you give me a chance to make it right, if we still can’t resolve the problem, I will release you from our agreement and refer you to another Realtor® who fits you better.  This is unheard of.  Most Realtors® will keep you tied to the agreement for however many months you signed for.  And watch out for that carry-over clause.  You may be stuck even longer.  But the way I look at it is, if it’s not working, it isn’t good for me or for you to be forced to continue working together.  I am confident that I can help you with whatever your real estate goals are, you will love me, and we will all live happily ever after!  THE END.

So if you are seeking real estate in the Clarksville, Tennessee or Fort Campbell, Kentucky area, you have found a Realtor® on your side!  Call me today or submit your information below so I can be your own personal Buyer Representative!

© Ariel Anderson and https://buyorsellclarksvilletennesseehomes.wordpress.com, 2013.  Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Ariel Anderson and https://buyorsellclarksvilletennesseehomes.wordpress.com with appropriate and specific direction to the original content.

Comments
  1. […] 6 Reasons NOT to Call the Realtor on the Sign (buyorsellclarksvilletennesseehomes.wordpress.com) […]

  2. […] 6 Reasons NOT to Call the Realtor on the Sign (buyorsellclarksvilletennesseehomes.wordpress.com) […]

  3. […] Agent.  This agent does not cost the buyer a dime in this area.  As I talk about in 6 Reasons NOT to Call the Realtor on the Sign, my services to you as a Buyer Representative are practically free.  The commission percentage is […]

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