Posts Tagged ‘realtor’

Welcome Home to Clarksville! No feeling homeless or waiting for weeks on end in hotel rooms for this sweet family just rolling into town! Send me a message and I can have a home ready for you too!

Ariel Anderson, Licensed TN Realtor®

Keller Williams Realty
2271 Wilma Rudolph Blvd.
Clarksville TN 37040
(931)436-6765 Cell
(931)648-8500 Office
ArielAndersonRealtor@gmail.com

Each Keller Williams Office is Independently Owned and Operated.

Sign Proof“So what will it cost us to secure your services?”  One of the top questions that I receive.  The answer may vary depending on the services you request.  For the purposes of this 3 part series, I will let you in on Renter’s Agent, Buyer’s Agent, and Seller’s Agent pay.  According to the 2013 National Association of Realtors Member Profile, “In 2012, the typical agent had 12 residential transaction sides – up from the previous year when the typical agent had 10 transaction sides.”  Traditionally, the real estate industry is completely commission based.  Most of the time, a Realtor works under the supervision of a broker unless they are a broker themselves.  In that case the broker may have their own company or work with a large, well-known company like Keller Williams for example.  There is also the option for a Realtor to work on a team within a larger company.  All of these folks require payment.  So realistically, on one real estate transaction, there is the potential for the commission to be split 6 different ways before it is all said and done.  Let’s take a look at the Seller’s Agent…

The Seller’s Agent.  In the very beginning, the commission percentage for the whole transaction is agreed upon between the seller and the selling agent when the listing agreement is completed.  Generally, the selling agent agrees to split that commission with the buyer’s agent, and that amount is noted in the listing agreement, as well as on the listing that is put on the Multiple Listing Service (MLS).  The listing agreement also details the length of time that the agent will represent the seller, and any other pertinent information like bonuses to the Buyer’s Agent, etc.  The listing agent is in a unique position.  The idea is to get the home in great condition and priced right from day one.  However, despite the agent’s best efforts, sometimes the house doesn’t sell right away.  If the listing agreement expires, and the seller decides not to continue listing with the same agent, that agent may never receive any form of compensation for their time and effort towards marketing the home.

But they put a sign in the yard, place the listing on the MLS and then sit back and wait to get paid, right?  Some agents do.  That’s why I am hoping that you have done your research and chosen an agent who is willing to go the extra mile… like me!  Once you crunch the numbers, it will look like a LOT of money that you are paying to be represented.  Back to the “sign in the yard” question.  Everything (almost) is negotiable in real estate, so it is important to understand what comes with that commission percentage.  The agent may provide a professionally recorded video tour, a home inspection, color flyers, your home may be featured on their website, a lockbox for easy access, coordinated showings and feedback, open houses and all different types of advertising.  Or they might not include any of those things.

So how is a Seller’s Agent paid?  Once a contract is accepted, financing is arranged, and the transaction closes, the seller’s agent gets paid.  The realtor commission agreed upon in the listing agreement is split between the Seller’s Agent and the Buyer’s Agent.  Then, as I spoke of above, this is split with the agent’s broker, and may even be split with the agent’s team if they are on one.

Here is an example:

The price of the home is $100,000.  The commission is 6%; 3% to the Seller’s Agent, and 3% to the Buyer’s Agent.  The brokerage split is 70/30.  The royalties to the company are 5%.  And then the split to the team is 40%.  The paychecks may look like this;  $900 to the brokerage, $150 to the company, and $780 to the team.  That potentially leaves $1170 to the Seller’s Agent before taxes.

Agent John Doe said that he will only charge me 4% commission, so I’m going to go with him.  I’m sure you understand saving a few bucks, don’t you?  I do understand the initial “let me save as much money as I can” feeling.  But if you step back and look at the bigger picture, taking that 4% could cost you more in the long run.  Considering that the commission is split between the Buyer’s Agent and Seller’s Agent like we talked about above, is the agent likely to split the commission equally down the middle?  Probably not!  The reason behind this is because the Buyer’s Agent may be accustomed to receiving a pretty consistent percentage on the sales that they help produce.  We’ll say 3%.  If the 4% is split down the middle, that means the Buyer’s Agent only gets 2% when on most other homes they may get 3%.  That may mean the difference in showing another home (or many other homes) over yours.  So, say the Seller’s Agent agrees to give the Buyer’s Agent the 3%, but there is only 4% to work with.  That leaves the Seller’s Agent 1%.  Let’s see what that looks like in numbers…

The price of the home is $100,000.  The commission is 4%; 1% to the Seller’s Agent, and 3% to the Buyer’s Agent.  The brokerage split is 70/30.  The royalties to the company are 5%.  And then the split to the team is 40%.  The paychecks may look like this;  $300 to the brokerage, $50 to the company, and $260 to the team.  That potentially leaves $390 to the Buyer’s Agent before taxes.

Now, do you think a listing agent is going to extensively market your home, do open houses every weekend like you want them to do, and contribute ample time and money to your home for $390?  If so, they won’t be in the business for long because they won’t be able to put food on their table.  It is more likely that this will be the agent who puts a sign in your yard, places the listing on the MLS, and sits back waiting to get paid.

What if we do a For Sale By Owner instead?  Click the chart to read over statistics provided by the National Association of Realtors, and enough said:  FSBO Stats

Seller’s Agent Expenses. So dang, those agents make a lot of money, right?  Hold your horses!  On top of our split, we have all of these additional expenses and then some:

  • Various taxes
  • Office fees
  • Office supplies
  • Realtracs subscriber fees
  • Advertising (signs, websites, business cards, etc)
  • Clarksville Assocation of Realtors dues
  • Tennessee Association of Realtors dues
  • National Association of Realtors dues
  • Dues for other professional organizations we may belong to
  • Listing services (virtual tours, staging, professional pictures, home inspections, etc)
  • Electronics (computers, cameras, etc)
  • Phone bills
  • Vehicle maintenance
  • And the worst of all… GAS (sometimes multiple times per week)!

Does that break it down for you?  Questions?  Concerns?

Be sure to read, Realtor Pay Exposed (Part 1 of 3): The Renter’s Agent and Realtor Pay Exposed (Part 2 of 3): The Buyer’s Agent.

If you have questions or need real estate assistance in the Clarksville, Tennessee or Fort Campbell, Kentucky area or know anyone who does, call me today at (931) 436-6765 or submit your information below.

© Ariel Anderson and https://buyorsellclarksvilletennesseehomes.wordpress.com, 2014.  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.

real-estate-dual-agency-buyers-and-sellers“So what will it cost us to secure your services?”  One of the top questions that I receive.  The answer may vary depending on the services you request.  For the purposes of this 3 part series, I will let you in on Renter’s Agent, Buyer’s Agent, and Seller’s Agent pay.  According to the 2013 National Association of Realtors Member Profile, “In 2012, the typical agent had 12 residential transaction sides – up from the previous year when the typical agent had 10 transaction sides.”  Traditionally, the real estate industry is completely commission based.  Most of the time, a Realtor works under the supervision of a broker unless they are a broker themselves.  In that case the broker may have their own company or work with a large, well known company like Keller Williams for example.  There is also the option for a Realtor to work on a team within a larger company.  All of these folks require payment.  So realistically, on one real estate transaction, there is the potential for the commission to be split 6 different ways before it is all said and done.  Let’s take a look at the Buyer’s Agent…

The Buyer’s 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 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!

There will be a Buyer Representation Agreement.  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.  According to the Tennessee Association of Realtors® (TAR) Consumer Guide to Agency Law in Tennessee, “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.”

This part is important to us Realtors, and I think you will be able to see why.  I’ve only had it happen once, but it still stings.  A potential buyer contacted me months before their anticipated arrival.  There were some specifics that they required in a home.  I searched, and searched, sifting through listing after listing (hundreds!) to find the right ones to show them.  Hours of my time before they ever arrived.  I answered their questions, blocked my time for them in preparation for their arrival, and was completely dedicated to easing their transition.  To make a long story short, they didn’t want to sign my Buyer Representation Agreement when they arrived, even though I agreed to write in the special stipulations that I would let them out of it if they so desired.  For three days, I searched for homes, arranged showings, and took them to see houses.  We drove from one end of Clarksville to another, and I held other clients off out of loyalty to the time I had blocked for them.  On the fourth day, after arranging another evening of house hunting, they stood me up.  Property transactions are noted in our Multiple Listing Service (MLS), and are ultimately public information.  It wasn’t long before I discovered that they had bought the very first home that I showed them.  Hours, and hours of my time wasted.

But moving forward, how is a Buyer’s Agent paid?  We find the home you love, and go under contract.  On the MLS sheet, the compensation amount is listed.  This is a percentage that is split between the Seller’s Agent and the Buyer’s Agent.  Then, as I spoke of above, this is split with the agent’s broker, and may even be split with the agent’s team if they are on one.

Here is an example:

The price of the home is $100,000.  The commission is 6%; 3% to the Seller’s Agent, and 3% to the Buyer’s Agent.  The brokerage split is 70/30.  The royalties to the company are 5%.  And then the split to the team is 40%.  The paychecks may look like this;  $900 to the brokerage, $150 to the company, and $780 to the team.  That potentially leaves $1170 to the Buyer’s Agent before taxes.

Buyer’s Agent Expenses. So dang, those agents make a lot of money, right?  Hold your horses!  On top of our split, we have all of these additional expenses and then some:

  • Various taxes
  • Office fees
  • Office supplies
  • Realtracs subscriber fees
  • Advertising (signs, websites, business cards, etc)
  • Clarksville Assocation of Realtors dues
  • Tennessee Association of Realtors dues
  • National Association of Realtors dues
  • Dues for other professional organizations we may belong to
  • Closing gifts to our buyers
  • Electronics (computers, cameras, etc)
  • Phone bills
  • Vehicle maintenance
  • And the worst of all… GAS (sometimes multiple times per week)!

Bonuses.  I will let you in on one last little secret.  Everything in real estate is negotiable.  Sometimes if a particular listing has been on the market for a long time, or if the seller is motivated to get the home sold quickly, they may include a bonus to the Buyer’s Agent.  These bonuses can range from hundreds of dollars to thousands (even tens of thousands) of dollars, and it is not something that you as the buyer are usually aware of.  Though any payment amounts are noted on the final HUD that you will receive before closing.  The seller and listing agent can also agree to pay a higher commission percentage as an incentive to the agent.  Keeping that in mind, if you have an agent who is passionate about the families they help, and not particularly money driven, they may opt to forgo the additional bonus or lower their commission amount to get you the deal that you want.  Not tooting my own horn, but I have done this for my clients.  I have let a few bonuses go to get my buyers the most and there are a few other like-minded agents out there.  Disclosure is the best practice in my opinion, and I do not try to keep those sorts of things concealed.  After all, realtors can offer their opinions, but we cannot make you buy a particular home.

Be sure to read Realtor Pay Exposed (Part 1 of 3): The Renter’s Agent and Realtor Pay Exposed: The Seller’s Agent (Part 3 of 3)

Does that break it down for you?  Questions?  Concerns?

If you have questions or need real estate assistance in the Clarksville, Tennessee or Fort Campbell, Kentucky area or know anyone who does, call me today at (931) 436-6765 or submit your information below.

© Ariel Anderson and https://buyorsellclarksvilletennesseehomes.wordpress.com, 2014.  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.

Rental-Property“So what will it cost us to secure your services?”  One of the top questions that I receive.  The answer may vary depending on the services you request.  For the purpose of this 3 part series, I will let you in on Renter’s Agent, Buyer’s Agent, and Seller’s Agent pay.  According to the 2013 National Association of Realtors Member Profile, “In 2012, the typical agent had 12 residential transaction sides [this does not include rentals] – up from the previous year when the typical agent had 10 transaction sides.”  Traditionally, the real estate industry is completely commission based.  Most of the time, a Realtor works under the supervision of a broker unless they are a broker themselves.  In that case the broker may have their own company or work with a large, well known company like Keller Williams for example.  There is also the option for a Realtor to work on a team within a larger company.  All of these folks require payment.  So realistically, on one real estate transaction, there is the potential for the commission to be split 6 different ways before it is all said and done.  Let’s take a look at the Renter’s Agent first…

The Renter’s Agent.  This agent is one that is often overlooked and underappreciated.  How many of you are currently renting a home or have rented in the past?  Did you enlist the help of a real estate agent while searching for a rental property?  Back in the day you could go to a property management company, sign out the key and go view the home on your own.  However, in the Clarksville area, I have heard recently of renters being told they needed to call an agent to show properties.  In my experience, it is the Renter’s Agent who is expected to work the hardest, catch the most heat, and make the least compensation.  You see, oftentimes, we get paid very little or nothing at all to show rentals.

Frequently the property management company will pay the agent 10% of the first month’s rent or $100 but only IF the agent is noted on the application as the referring agent.  I have renters who contact me months before they arrive or plan to move.  Frequent updates are expected.  What new homes are available for rent?  Can you only send pet friendly rentals?  Will you make sure to send only rentals that have a fence?  Will you go do video tours?  You can imagine how the hours of work add up.  Upon arrival, they have a list a mile long of the rental homes they would like to see.  Many times they do not want to buy because they don’t have good credit or possibly an unfavorable payment history.  Property management companies will run credit checking for financial stability too and often expect to see a reasonable score.  The application is in, the requirements are not met for whatever reason, application is denied, and the real estate agent receives no compensation resulting in a significant loss of time and energy.

There is also no representation agreement with a Renter’s Agent.  Buyer’s Agents and Seller’s Agents often have contractual obligations to their clients.  If the agent has a schedule filled with buyers and sellers, it is easy to understand how renters may get lost in the shuffle.  Have you had a hard time finding a Realtor to help you find a rental?  Under the best of circumstances, 10% of the first month’s rent or $100 is paid to the Realtor, but that amount is still split with the company or broker that an individual agent works with, then possibly split with the team too.

Scenario:  A Realtor receives $100 for referring a renter.  The Realtor has a 70/30 commission split agreement with their brokerage.  They also have to pay an additional 5% in royalties.  The Realtor walks away with $65.  Unless they are also on a team, in which case, they may be required to split the commission again by as much as half.  $32.50 take home pay on the rental BEFORE taxes.

If you find a Realtor willing to help you secure a rental, be kind to them.  Many times they are like me, and they help with rentals simply because they enjoy helping families.  It can be hard, thankless work.  We sift through hundreds and hundreds of rentals.  A lot of times, when we finally take you to see homes, they are in terrible condition.  I have heard, “I can’t believe you would rent a place like this!”  It’s not me.  I am not the property manager.  I don’t work for the property management company.  I simply have access to the Multiple Listing Service (MLS) and all the rentals listed on there from any company in town who also has access.  I have a Sentrilock card, and a desire to help ease the stress of finding a home for you in a short amount of time.  I have even heard, “I need a commitment from you to be available for me all day tomorrow.”  I can try my hardest, but sometimes I am not able to make that commitment due to my other contracts and obligations.  Again, please be kind and try to understand where your Renter’s Agent is coming from.

In closing, it is becoming increasingly common to need a Renter’s Agent in order to view rental properties.  It is demanding, and time-consuming work for a small amount of pay.  You may find many Realtors who request that you are pre-qualified before showing rentals, or choose not to show rental properties altogether.  Now you may have a better understanding of the Renter’s Agent pay.  Feel free to share any questions or comments below!

Be sure to read, Realtor Pay Exposed (Part 2 of 3):  The Buyer’s Agent and Realtor Pay Exposed (Part 3 of 3): The Seller’s Agent.

If you have questions or need real estate assistance in the Clarksville, Tennessee or Fort Campbell, Kentucky area or know anyone who does, call me today at (931) 436-6765 or submit your information below.

© Ariel Anderson and https://buyorsellclarksvilletennesseehomes.wordpress.com, 2014.  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.

So you are ON FIRE!  You have decided to look into purchasing a home, and you are ready to get the ball rolling… like, yesterday!  Hopefully you have already read Tell me how this “buying a home” thing works?  A Guide, and now you are ready to read on for why NOT to stop, drop, and roll with the first lender!

Zelda__Stop__Drop__and_Roll__by_Gabi_hime

©2005-2013 ~Gabi-hime

All mortgage lenders are not created equally.  You deserve a second, third, or fourth, fifth, and sixth opinion when it comes to a major investment like a home loan.  Just because the bank is larger does not mean you will get the best interest rates, and sometimes there are additional fees that you may not be aware of.  Furthermore, your loan will be sold once it closes and nobody needs your approval to do it.  There are very few mortgage companies who keep their loans in house.  So do you feel like you have banked with USAA since you had a bank account and that you are being loyal to the company?  They will sell your home loan.  You have everything in your whole life with Navy Federal?  They will sell your home loan.  Your best friend’s sister-in-law, Sally Sue, works at Bank of America, and can hook you up?  They will sell your home loan.  This usually happens immediately after the closing and can happen multiple times over the life of your loan.   Here are a few things you need to know when it comes time to mortgage shop:

  • Having your credit run does effect your credit score.  However, what you may not have been told is that you are allowed to shop for mortgage, auto, and student loan rates.  Your credit can be run as many times as needed and lumped under one inquiry for mortgage, auto, or student loans as long as you complete your search within 30 days.   The theory here is that if you apply for multiple sources of revolving debt, you will likely be approved.  Versus if you apply for multiple mortgages, you will only receive one approval.  Therefore the revolving debt impacts your credit more significantly.  Do NOT stop, drop, and roll with the first lender! 
  • You can shop as many mortgage lenders as you would like, but you should do it within a limited time frame.  Ideally, consider mortgage shopping for 14 days, though you are protected with inquiries made within the 30 days before scoring.  Do NOT stop, drop, and roll with the first lender!   
  • Checking your own credit score will not hurt your credit.  It is a fallacy to assume that checking your own credit report should be done sparingly.  To prevent identity theft, or mistakes on your report you should check it at least once a year if not more.  Under the Fair and Accurate Credit Transactions Act (FACTA), you can check your report for free once a year.  However, there may be a small fee to receive your actual score.  That is where a lender can be useful to you.  However, do NOT stop, drop, and roll with the first lender.
  • You have no obligation to go with a mortgage lender that you have spoken with.  It may seem like you have given them access to everything you own, including your first born child, but do not let that dissuade you from shopping for mortgages.  You are not bound to a particular lender because they have run your credit and told you what you qualify for.  Even once you are into the buying process with your Realtor, you can still switch mortgage lenders.  You may even be under contract and preparing to close, but you can still switch!  One more reason you should NOT stop, drop, and roll with the first lender you speak to. 

One more point I feel compelled to add since many of my readers have the ability to use VA home loans:

  • There is no minimum credit requirement that is set by the VA!  The individual lender determines the credit score they are willing to accept.  The VA does not fund your loan, they simply guarantee a portion of it.  There are mortgage lenders out there that are willing to work with a bit riskier of a credit history.  It all depends on the individual circumstances, but this is THE BIGGEST myth I hear on a daily basis.  Once again, the VA does not fund your loan or have a minimum credit requirement.  Read for yourself, right here from the Veteran’s Benefits Administration Home Loan Guaranty Factsheet.  You can speak with your Realtor (preferably yours truly… ME!) who will typically have the scoop on a lender who may be able to help you if you have a trickier credit situation.  But you do NOT have to stop, drop, and roll with the first lender your speak with while giving up on your dream of owning a home.

As I speak of in Tell me how this “buying a home” thing works?  A Guide, you should be able to communicate easily with your Realtor.  The same holds true for your mortgage lender.  You should be able to get in contact with them easily.  They should return your phone calls, emails, and answer your questions.  The benefit to using a local lender is you will likely have their cell phone number and email address and can easily contact them on the weekends and evenings.  They work for you, and let’s face it, many home contracts go through on the weekends and evenings.  Your Realtor works for you, and so should your lender.

So did you learn something today?  How many mortgage myths have you been subject to?  Don’t assume that your Realtor knows it all either since after all, mortgage lending is not our area of expertise.  I see misinformation sent every day to consumers by Realtors who do not understand mortgage lending.  Hopefully I taught you Realtors reading a thing or two as well!  Most importantly, be an informed consumer!  Do not leave an office or end a phone call without understanding what you have been told.  You are not a burden, and you should not be treated as such.  If you get the feeling you are, then take your business elsewhere.  Informed consumers stimulate the housing market, and in turn stimulate our economy.  This FDIC Mortgage Shopping Worksheet may assist you when shopping for the best loan option for your family.  Happy home hunting!

If you are seeking real estate in the Clarksville, Tennessee or Fort Campbell, Kentucky area or know anyone who is, call today or submit your information below.

© 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.

In 1943, Abraham Maslow developed a psychological theory of basic human needs.  The foundation of the pyramid includes physiological requirements which among others include breathing, food, water, sleep and shelter.  The pyramid theorizes that the next level of human needs include bodily safety, health, and the security of property.  Having a place to call home is one of the most important motivators of human behavior and it is equally important to find the right person to guide you through the process.  Read on for tips to find the Realtor that is right for you!

Maslow

Word of mouth (or keyboard) is the best advertisement!  Ask your friends and family first.  Sometimes that is more difficult if you are being relocated to an area that is new and unfamiliar.  As a fellow military family, we have been in that situation more than a few times.  That is when social media can be your best friend.  Utilize Facebook and different public forums.  At Fort Campbell alone there are several different active Facebook pages to include PCSing ~ Relocating to Fort Campbell, KY ~ Clarksville, TN and Fort Campbell Wives Page.  Ask around!  Then once you get names of a couple of Realtors, ask if they have a couple of clients that wouldn’t mind speaking with you about their buying experience.  According to The 2012 National Association of Realtors® Profile of Home Buyers and Sellers, “buyers most commonly choose an agent based on a referral, with trustworthiness and reputation being the most important factors.”

Visibility in the marketplace matters!  While you are getting recommendations and speaking to clients, check the Realtor’s visibility.  One of the fastest ways to do that is to run a Google search.  For example, search “Ariel Anderson” and see what comes up.  Try “Ariel Anderson Realtor” or “Ariel Anderson real estate”.  If you don’t get any results, that is no bueno and a good sign that the Realtor is not well-established in the community.  On the opposite end of the spectrum, if the Realtor is all over every billboard, shopping cart, and magazine that you see, chances are that you will be working with more than one person, or likely even a team.  Typically when working with a larger organization or team, you may have several different hands on documents, there may be longer waits for return phone calls, and that “home town” feeling might be missing.  Be cautious if someone entices you to use their services and then sends you on to another person, who may send you on to another.  You need to know who is on your side, and that you will not be lost in the shuffle.

What exactly do you do for a living?  Another good way to tell if a Realtor is right for you is to find out if they practice real estate full-time in this area.  According to the latest update, the Clarksville Association of Realtors has 703 active Realtors registered.  Not all of them practice full-time, and some of them may not even be in the area.  You want to make sure that whoever you are working with takes your quest for a home as seriously as you do.  They need to be directly involved in local real estate, knowledgeable of the area, and familiar with homes currently on the market.  If the Realtor is spread to thin and constantly distracted by other duties, you may not get the time and diligence needed.

You may also want to be sure that you aren’t being used as a referral.  There are some Realtors who make a living off of collecting referral fees.  They may tell you they are familiar with the area and have a lot of contacts that may be able to assist you.  They will get your personal information (name, phone number, email, etc), send it to a Realtor or team who is actually based locally, and then behind the scenes they collect a percentage of the commission that the Realtor they referred you to makes when you close on a home even when they did not personally do any work on the deal.  Make sure that the Realtor represents themselves honestly from the start, that the individual you speak to is here, and that they are willing to meet with you personally versus passing you off to someone else while collecting a fee.

Communication is key.  As I speak of in Tell me how this “buying a home” thing works?  A Guide

Make sure you feel like you can communicate with easily and that you are working with someone who will answer your phone calls, or return them at least.  Can you ask questions without being rushed?  Do they answer your questions or give you vague replies?  You want to make sure the individual is enthusiastic about their work and is confident with the process.  They need to be willing to explain things over and over again without getting frustrated, until you understand completely.

Do not drive around or search online, find a pretty home, and call the number on the sign.  The agent on the sign is the listing agent and works on behalf of the seller.  You see, with any real estate transaction, there are two sides; the selling side, and the buying side.  You want to find someone to represent you and your best interests!  There will be an Exclusive Buyer’s Representation Agreement which says that you agree to work with your realtor for a certain, mutually agreed upon, amount of time.  If you decide you do not like your realtor, once you have signed this agreement… if you go out and do the deal on your own… you may still be responsible for paying your realtor a commission, even if you did all the work on the side.  Make sure it is a good fit before you sign.  Read the fine print and remember that everything is negotiable until it is in writing!

Check your gut.  What does your instinct tell you?  Before signing a Buyer’s Representation Agreement, ask if the Realtor can show you a couple of homes.  Pay attention to the feelings that you get now so that you aren’t stuck in a binding agreement later with someone who is just isn’t a good fit.  As reported by The 2012 National Association of Realtors® Profile of Home Buyers and Sellers, “Two out of thee buyers interviewed only one agent.  Eighty-nine percent of buyers are likely to use the same agent again or recommend to others.”  My personal recommendation is that you speak with a couple, unless you come across me first, and then look no further… You’ve found a Realtor on your side!

One more word to the wise;  Older and in the system longer does not necessarily mean better.  Sure experience is important!  They need to know the ropes, and understand the market.  But you also want someone who is eager, enthusiastic, and up to date with the market.  They need to be up to speed with the latest technology, social media, and community in general.  How cool is to find a realtor that utilizes text messaging, or Facebook?  Yeahhhhh, come on out of the stone ages!!

In conclusion, and back to Maslow’s hierarchy of needs, buying a home and the people you choose to work with can affect many of your basic needs at some point along the way.  At the upper part of the pyramid you will see a need for friendship (love/belonging), respect by others (esteem), and problem-solving (self-actualization).  A great Realtor will not only help you with the most basic of needs, finding a safe shelter, but will also be a friend, will respect your choices and desires, all while helping you to problem solve through the process with your best interests at heart.

Pick Me!So if you are seeking real estate in the Clarksville, Tennessee or Fort Campbell, Kentucky area, pick me, pick me!  Call 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.

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.