Important Cautionary Notice:
Homebuyers are often led astray by well-meaning friends and relatives who tell them to go out and learn about the market before they get ready to buy a house -- Open Houses, New Construction, homes magazines. But, their friends and relatives don't tell them what to do if they happen to find the perfect home right away when they are only out "just looking".!
Unfortunately, many Home Buyers naively assume that they can talk to many different real estate agents without being obligated to them. However, when a Home Buyer speaks to a real estate agent at an Open House, calls an agent for information from a newspaper or internet ad, or asks an agent to show you a home, they are potentially making a big mistake if they don't intend to buy the home through that agent...who is most likely working for the Seller. The same is true if a Home Buyer is just talking with a developer's or a builder's sales people at the "model", or even to a "For Sale By Owner".
Basically, in New Jersey, if a Home Buyer visits a property with one agent and later decides that they need advice about the pros and cons of the property, market value/comps and/or help with preparing their offer, they can not just retain another real estate agent of their choosing to represent them (even one trained especially to work for Home Buyers like us).
In New Jersey, Home Buyers do not always get to choose to have their own real estate agent for a particular property. Often times, their actions have already made the choice for them; and, they didn't even know it. The result is that they inadvertently forfeited their right to representation and can often end up with an inexperienced, or part-time real estate agent who is actually working directly for the Seller, and not for them.
A Home Buyer's best bet to avoid problems is to be upfront with each real estate agent, developer, builder, or "For Sale By Owner" they talk with.
And, most importantly Home Buyers need to hire the best qualified agent to represent them and help them find their new home before they even start "just looking around". Smart homebuyers know they need to choose their agent BEFORE they choose their house, and not the other way around. It no, it most likely is too late to change agents...at least on that particular property they are interested in.
-
Make sure to let them know you are working with a your own Buyer's Agent.
If a real estate agent or a developer or a builder doesn't ask you if you're working with your own agent, promptly volunteer that information. They are supposed to ask you this question but sometimes they don't: they forget, are afraid to hear the answer, become distracted. Set them straight immediately. -
Have a signed buyer's agency agreement with your own Buyer Agent.
A Buyer's Agency agreement (also recommended by the New Jersey Real Estate Commission) clearly describes the relationship you have with your Buyer Agent, how they are compensated, and the duties of both you and your agent. -
Make sure you go over the New Jersey agency disclosure with your Buyer Agent.
The New Jersey Consumer Information Statement describes the various relationships under which an agent can operate with you in New Jersey. Understand what your options are and what they mean in terms of getting 100% representation from your own agent. -
Do not ask another agent to show you property.
If you do, they become your agent for that property. -
Do not directly call listing agents for information.
If you do, they may become entitled to be your agent for that property.
Follow
Open House protocol if you visit them unescorted.
If you attend Open Houses without your own Buyer Agent, either
hand your agent's business card to the agent hosting the
Open House or sign the Open House guest book with your
agent's name next to your own. Not only will this
help protect you, the Open House agent won't try to
corral you or request your personal information.