WHAT YOU NEED TO KNOW BEFORE CHANGING REALTORS

January 24, 2011 at 12:46 pm 1 comment

Buying a home is not easy as it might seem, especially if you are working with multiple Realtors to find you the best deal in town.
In the end, if you close on a property, only one Realtor will get paid. What about the other Realtors who took you around and showed you one, two, three or more houses? They don’t get paid and they work for FREE. Nobody wants to work for free. Successful Realtors are able to detect red flags regarding a prospective transaction and may choose to decline a buyer’s request to help them with a property, afraid that their time is not being spent constructively.
Recently, a cash buyer called me after seeing my website and asked if I could find him a home. I asked him if he had another Realtor that he is working with, and he said yes. But, he said, he was not satisfied with his Realtor, who had not found him a home after over one year of looking. I further learned that this buyer had a pending offer on a home with this same Realtor recently but does not know where he stands on the offer.
Though it looked like a good and solid buyer looking at a decent price range, the transition from the previous Realtor to me is not that easy. In order for me to get the commission, Real Estate Rules requires that the buyer has to confirm the following;
1. There is no buyer-broker agreement signed by the client with a previous Realtor.
2. The buyer is not under contract on another home.
3. None of the homes I show the client may have been shown by the client’s previous Realtor.
My broker, through me, cannot interfere with any existing contracts and I am not guaranteed a commission on a home that was previously shown by another Realtor due to something called “procuring cause.”The legal definition of procuring cause would be “the cause that results in the attainment of a stated goal.” In real estate, it would take on the meaning of the real estate agent or broker who, by their actions in producing a buyer, brought about the sale of a property.
In simpler terms, procuring cause determines which Realtor rightfully deserves the commission. Sometimes, it could be the Realtor who showed the home first to the buyer that led the buyer to like the house and ultimately close on the home. If another Realtor was awarded the commission, the first Realtor has a few months to go to arbitration and claim the commission from the second Realtor. Sometimes, the first Realtor could go after the buyer for the commission.
Many real estate cases brought to arbitration are due to procuring cause. If you are not satisfied with your Realtor, give that person a courtesy call to inform and offer him or her an opportunity to resolve any issues you have with his or her service. If you still do not come up with an agreement, talk to the Realtor’s broker and ask for help.
In summary, you only need one Realtor who will be committed to finding you a home. To find the right Realtor for you, check on the Realtor’s website, ask references and check testimonials. You could even ask another Realtor for a recommendation for Realtors and the referring Realtor could get a referral fee at closing. Referring Realtors are likely to refer you to a good agent that can close on a home for you.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , .

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1 Comment Add your own

  • 1. Angel K  |  February 19, 2011 at 6:06 pm

    Working with multiple realtors is a waste of time. Find yourself a solid agent that is dedicated to what they do.

    Reply

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