Twin Cities Fall Parade of Homes
Organized by builders and remodelers to show off their latest projects, the Fall Parade of Homes can also be the cause of some glitches between Buyers and their Realtors.
Especially if the Realtors didn’t know their clients were looking for a new home.
When a client goes through the builder’s open house unaccompanied and then decides to buy, the developer doesn’t have to pay the Buyer’s agent.
That’s because they have “procuring cause” — industry-speak for who brought the Buyer to the table . . . and therefore is entitled to the commission offered to the Buyer’s agent (called “the payout”).
When that happens, the Buyer is effectively on their own.
Which is unfortunate, because if their Realtor had known they were looking, they could have arranged a private showing for them, negotiated for them, and generally represented their interests throughout the process.
