I got quite a few emails with some thoughts, some questions and the like regarding some of the rule changes regarding buyer broker agreements, so here we are entertaining another mailbag!
Q: My spouse and I have been looking to purchase a home as unrepresented buyers. Why are listing agents so rude? They ask a million questions, want us to send them all kinds of documents we aren't comfortable providing to a relative stranger. Why are they making this so difficult for us?
A: To your first question, no idea. As for the documents they are asking for, I'm guessing perhaps pre-approval or proof of funds. Maybe a picture of IDs? If they are asking you for these, they are attempting to properly vet you, as meeting strangers in an empty house can pose some serious safety concerns for both the listing agent and their client's property. Would you meet strangers off Craigslist at your client's empty home? As a member of the Central Oregon Association of Realtors, myself and my peers have already been vetted and can access the property without the accompaniment of the listing agent or homeowner, which could perhaps save some time. Buyers' agents have already vetted their own clients and are held responsible for their clients while touring the property. Another factor is every agent has their own schedule and may not be able to (or want to, in some cases, I suppose). If it were me in the situation, I would ask for a pre-approval, and begin to do some of my own due diligence in terms of talking with the unrepresented buyers and their lender to ensure they are in fact potential buyers, and they are qualified to purchase the property. This is part of a "new" process that everyone —buyers/sellers/agents/brokerages — is trying to navigate so, unfortunately, like a lot of "new" things, will take some getting used to. You may or may not remember, but prior to the "2008 Recession," many lenders did not require proof of income or tax returns to approve a home loan.
Q: Why do I have to sign an agreement prior to seeing a home? Maybe I am not ready to be locked into working with an agent, but want to tour a home?
A: I got a couple of similar questions to that, and the shortest answer is so that buyers can best negotiate with their agents about their expectations of their agent, and the agent can discuss their fee or compensation. To provide you with a solution to your question, buyer broker agreements need to be specific, so you could enter into an agreement for an individual property, if you want to see it quickly. Please beware, your agreement could (and likely) has a stipulation that if you come to terms within a set period (90 and 180 days are common) to purchase that specific property, a buyer's agent could be due a commission. Now, whether they or their broker want to pursue that commission is a different matter. My free tip of the week: Read contracts prior to signing them, and make sure you understand them.
A: With interest rates coming down, I might be able to purchase something (a little something) outside of Bend sometime in the next six months to a year! Sorry not a question, just excited!
Awesome, that is great news for you! Do yourself a favor and please speak with a local lender now, so that you can find out what you are approved for, that way if rates drop more, you can beat the masses to refinance or purchase. Lenders also have knowledge on when you may want to lock or float your rate, once you have identified the property you would like to purchase.
