Practice Tips for Newer ” and Not-So-New ” Twin Cities Buyers’ Agents
What does the Spring 2019 Parade of Homes ” set to start tomorrow (Saturday, March 2) in the Twin Cities ” have to do with passing out Realtor business cards?
Just this: if a Buyer you’re working with goes through a Parade home and decides to buy it, you may have a “procuring cause” issue with the property’s builder and/or the agent representing them.
Translation for laymen: you may not get paid.
“Procuring Cause 101”
That’s because the “payout” commission ” the part of the commission offered to the Buyer’s agent ” is technically payable to the agent who’s responsible for the sale.
That’s usually the Buyer’s agent, but there’s a multi-factor test including such criteria as, “who introduced the Buyer to the property?” “Who had control of the Buyer?” and “Who wrote the offer?”
Rather than get into a messy debate over a commission, most veteran agents ” myself included ” simply instruct their Buying clients to let the agent hosting the Parade open house know that they’re represented.
The quickest way to do that?
Hand them their agent’s business card.
Depending on the builder, it may also be necessary for represented Buyers to register at the “Parade” home ” that is, sign the builder’s attendance sheet.
Of course, if the client has interest in the Parade home, it’s incumbent upon the Buyer’s agent to jump back in the loop and do all the things Buyers’ agents do.
You know, stuff like researching the Comp’s, helping their client put together an offer, presenting and negotiating the offer, etc.).
P.S.: I typically hand out a slug of business cards to all my Buying clients, regardless of the time of year.
That’s because I encourage them to look at Sunday open houses ” while I’m busy hosting my own for selling clients.