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jitty
Posts: 3
Registered: ‎02-09-2012
0

Open houses vs seeing it with an agent?

I'm a first time home buyer and am confused with the process.

Can I go check out homes with open houses on my own and then later choose to work with a Redfin/partner agent to help with negotiating the process when I find the right home?

What if the house is less than the minimum listed price and I don't see a partner agent listed that is in my area?  Will a Redfin agent in that area still work with me on a lower listed price homes?

 

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pgrattan
Posts: 4
Registered: ‎01-23-2012
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Re: Open houses vs seeing it with an agent?

You can and should visit open houses on your own as one of your approaches. My only recommendation would be that you then find your own agent to represent you rather than the seller's agent, who is obviously the one presenting the open house. They will encourage you to deal directly with them if you are interested in the property, but it is in your best interest to have someone working directly for you. You can pick someone you are comfortable with and ask them to show you that particular house. Try to avoid calling any listing agents directly, as they have the seller's interests in mind.

Paul Grattan Jr.
Grattan Home Inspections
Redfin Market Manager
michael-daly
Posts: 39
Registered: ‎04-23-2009
0

Re: Open houses vs seeing it with an agent?

Hi JItty-

 

Paul gave a good response. Here's how we view our roles as Buyers Agents:

 

Agents at Redfin Real Estate work as a Buyer’s Agent, representing your best interests at no cost to you when you are buying a home through Redfin.

 

Why does Redfin do this?

We believe that everyone deserves to have equal representation when making a home purchase. A great majority of real estate agents represent the seller in New York, which means that their fiduciary (or legal) responsibility is to the seller of the property, even if they are taking you, the buyer, to see the home.

 

How do I know if someone is working for the Buyer or the Seller?

A New York State Agency Disclosure must be presented to you for your signature the first time you meet an agent in New York. On that disclosure, the agent you are meeting is required to inform you whether they are representing the seller or you, the buyer while showing you this home. 

 

When I go to an Open House, who is representing me?

It’s safe to assume that, when walking into an Open House or when calling a Listing Agent, that the Listing Agent is representing the seller. In other words, it’s their job to get the best price for the seller on that house. They are not allowed, by law or **Realtor Standards of Practice, to be dishonest with you, however they are not required to fully disclose all material facts and are not obligated to protect your best interests in the negotiations. When working with a Sellers Agent, your best interests are not being represented.

 

But they are so nice to me and are happy to show me the house?

Yes, of course they are; they want to sell the property and get both sides of the commission. At Redfin, we believe that a single agent cannot both list and sell a home and provide equal representation to both buyer and seller. Our agents will only represent one party on a transaction as to not create a conflict of interest.

 

I hear that some Buyers Agents charge their Buyer’s commission.

Yes, there are some agents practicing Buyer Agency that require you to sign a restrictive Buyer’s exclusive contract that requires the buyer to either pay either part or the entire commission at closing if the seller’s agent is not offering what the buyer’s agent wants to make on the transaction. We, at Redfin, do not require this. We only ask you to sign our Buyer Agency Agreement when you have an Accepted Offer on a property. The Agreement allows you to opt out by a simple email if you choose. The Redfin Commission is paid out of the proceeds of the transaction. We do not ask you to pay any additional part of a commission.

 

**Code of Ethics and Standards of Practice of the NATIONAL ASSOCIATION OF REALTORS ®
Duties to Clients and Customers Effective January 1, 2012 


Article 1 
When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly. 

 

Regarding minimums and agent choices, if we don't serve your area, we might be adding it soon. Give us a call and we will help direct you to someone else if we can't assist you on that particular home.

 

Regards,

Mike

Michael Daly | Redfin New York Market Manager
michael.daly@redfin.com | 631.566.3053
See all my deals & reviews
Visitor
Mike_T
Posts: 1
Registered: ‎02-28-2012
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Re: Open houses vs seeing it with an agent?

If you go by yourself to an open house, be sure to tell the agent showing the property that you are working with someone, even if you aren't.  If the listing agent believes you are unrepresented, they may try to claim the entire commission for themselves, even if you come back later with your own agent.  The relevant phrase to research is "Procuring Cause", and it's just one more example of how transparent and consumer-friendly the real estate industry is. :smileywink:

Visitor
kathyo
Posts: 1
Registered: ‎03-01-2012
0

Re: Open houses vs seeing it with an agent?

I was hoping for a little input on my current situation. We have listed our home with an agent, who is also the listing agent for the home we want to buy. I realize this is a split of interest but what can we do if she has the listing of the house we want and we are already signed on with her for our home?

Thanks

Visitor
jitty
Posts: 3
Registered: ‎02-09-2012
0

Re: Open houses vs seeing it with an agent?

Thanks for all the feedback.  I've since read a great tip to know.  When you are asked to sign in at open houses by the seller's agent, DO NOT include any contact information.  Write down only your name... just in case you want to be represented later by your own buyer's agent.  This will hopefully avoid any "Procuring Cause" issue down the road as mentioned above!

 

Platinum Super Contributor
buyinghouse
Posts: 5,877
Registered: ‎04-23-2011
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Re: Open houses vs seeing it with an agent?


kathyo wrote:

I was hoping for a little input on my current situation. We have listed our home with an agent, who is also the listing agent for the home we want to buy. I realize this is a split of interest but what can we do if she has the listing of the house we want and we are already signed on with her for our home?

Thanks


    Two things can happen here. If he showed you his listing, he has procured the deal and that can bring some legal problems for the future agent you can pick.  But if you don't have any written agreement with your listing agent to be your buyer's agent and he hasn't showed you the house as an agent procuring your business (let's say you showed up at the open house), you are free to pick another agent and make an offer. It seems you are in trouble but again, you just tell the agent you are looking for your own interest and if he gives you any problems, remind him of the listing agreement he has with you as a payback. 

 

     If he wants to double dip in the deal, perhaps he can give you a good deal on the house yo want from him. Being straight forward with your agent is the best way to avoid future problems.  
 

  

Visitor
manhattanscout
Posts: 2
Registered: ‎02-27-2012
0

Re: Open houses vs seeing it with an agent?

pgratten totally got the point.

Super Contributor
LeonardVice
Posts: 274
Registered: ‎02-18-2012
0

Re: Open houses vs seeing it with an agent?

I would rather go to an open house with a realtor to see the house myself and know more about other properties as well.