Two Real Estate Rules You Need To Know

The real estate industry is guided by two rules. You must know these rules, especially if you visit any kind of open house.

Rule #1
Procuring Cause" Rules Determine Representation

The real estate industry's rules of representation - known as "procuring cause" rules - entitle an agent showing a property to represent you if you decide to purchase it. And, if you're not careful, you won't have a choice about it. Procuring rules don't consider who you want to represent you.

While these rules are intended to ensure compensation for the agent - and they're very effective at protecting the interests of large real estate companies - they put the home buyer at a disadvantage.

You may decide you don't want to buy a particular property if you can't choose your own representation. But, that can be easier said than done once you've made an emotional attachment to the house. To be certain to prevent this, it makes sense to contact The Home Buyers, Inc. before you start the home buying process.

Rule #2
No Requirement to Notify

Realtors and builder model representatives are not required tell you about the procuring cause rules that impact representation.

Some Realtors® may ask if you are represented, but they are not required to do so. Instead they may ask you to sign a guest book, register or enter a free drawing. Not only do these tactics let the real estate agent call and solicit you, they prove you were at the open house, often entitling the agent to increase his or her commission.

Learn how to get the representation you want, before visiting any open houses.