Whether you're a First Time Home Buyer or an Experienced Home Buyer it’s good to have a refresher. Buying a new home is an exciting time, however it can be stressful as well because it’s a major financial investment. As your trusted Real Estate Advisors our purpose at iMetro Property is to inform you about the buying process, equip you with the knowledge to make sound buying decisions, connect you with the best fit homes, and provide you with the highest level of service!
In Minnesota it is required by law to disclose the four main types of working relationships Realtors have with buyers in a real estate transaction. You need to understand these before receiving specific assistance when buying real estate.
In Minnesota there are four types of agency relationships.
I. Seller's Broker
II. Buyer's Broker
III. Dual-Agent - Broker Representing both Seller & Buyer
IV. Faciliator - Performs only services for a Buyer, a Seller or both but does not represent either in a fudiciary capacity.
If you are shopping for homes without a Buyer's Broker and contacting multiple agents, it could have consequences…. Have you seen the new Realtor.com commercials? You are likely to become a "Not-You" because you if you chose to shop for homes without being represented, you are in competition with other buyers who are! You could easily miss out on your ideal home by simply not having an agent looking out for you. The team at iMetro Property Real Estate Group can better target our search parameters to find you the best homes as they come available, so you don’t miss out on them! Especially when housing inventory is low and homes are selling quickly...
Second, the seller that you’ll be negotiating with will have their own representation, a Seller's Broker! A Seller’s Broker acts solely on behalf of the seller and owes duties to the seller; which include the utmost good faith, loyalty, and fidelity. The agent will negotiate on behalf of, and act as an advocate for; the seller. Does this sound like they will be acting in your best interest?
How it works having a Buyer’s Agent…
If you go out looking at homes without your Buyer's Agent for any reason, you MUST make sure the Seller’s Agent clearly understands you have buyer representation. If not, your Buyer's Agents ability to represent you properly can be put in jeopardy! Why is this?
Quick scenario… An agent is hosting an open house or builder model home and has a registration log. When you enter, you sign your name and your Buyer's Agents name. If your Buyer's Agent is with you, they will sign as well. This clearly shows the Seller’s Agent you have Buyer’s Representation. However, if you go into an open house or builder model home and never mention that you have a Buyer's Agent and you decide to buy that home, the Seller’s Agent may refuse to work with your Buyer’s Agent due to “procuring cause”. Procuring cause as it relates to real estate means your Buyer's Agents actions did not bring about the sale of the property so your Buyer Representation is jeopardized. You will be subject to the seller’s terms, which are in the seller’s interest and not yours.
If you are considering purchasing a new home put your trust in iMetro Property Real Estate Group! Complete our Contact Form or call 612-656-1200 to schedule a no-cost no-obligation Buyer's Consultation.