Do Not Visit Open Houses
or Builder's Models
By Yourself.

Homebuyers are often advised by "well-meaning" friends and relatives who tell them to go out to Open Houses to learn about the market.  As a result, many Home Buyers naively think they can talk to many different real estate Agents without being obligated to any of them.

However, when a Home Buyer speaks to a Agent at an Open House, calls an Agent for information from a listing or internet ad, or asks an Agent to show them a house, they are potentially making a big mistake. The same is true if a Home Buyer is "just talking" with a Builder's sales people at the "model".

Remember:

The person who shows you the Open House or Builder's Model is working for the SELLER; so

  1. you are required to buy that property through them (even though they don't work for you).
  2. and, they aren't allowed to represent your  "best interests".

If you visit a property and later decide that you need advice about the pros and cons of a property, market value/comps and/or help with preparing your offer, you can't just go to any Real Estate Agent to represent you. You have to work with the person you first contacted for that particular property. Typically, this is the Seller's Agent.

Home Buyers don't always get to choose their own Real Estate Agent for a particular property.  Their actions may have already made the choice for them; and, they didn't even know it.

The result is that you can inadvertently forfeit your "right to representation". 

 

Our Advice

To "avoid problems", be upfront with each Real Estate Agent, Builder (or, even "For Sale By Owner") you talk with.

  • Don't just ask any Agent to show you property.
    If you do, they become your Agent by default for those properties.
  • Don't call Listing Agents for information. If you do, they may become entitled to be your Agent for the property you asked about.
  • Do make sure you are working with your own "Buyer's Agent". 
    If a Real Estate Agent or a Builder doesn't ask if you're working with your own Agent, volunteer that information.  They are supposed to ask you this question; but, sometimes they don't.  They forget.  Or, they are afraid to hear the answer.  Or, they are just distracted.  Set them straight immediately.
  • Better yet ... Have a signed Buyer's Agency agreement with your own "Buyer Agent".
    A Buyer's Agency agreement (is recommended by the New Jersey Real Estate Commission) and clearly describes

    • the relationship you have with your Buyer Agent,
    • how they are compensated,
    • and the duties of both you and your Buyer Agent.
  • Follow our recommended Open House protocol if you visit Open Houses by yourself.
    If you attend Open Houses without us, either hand our business card to the Agent hosting the Open House, or sign the Open House guest book with our name next to your name.  This will protect you. Plus, the Open House Agent won't try to corral you or request your personal information.

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