Indiana Free Homebuyer Realtor Representation
So I'm at a wedding this weekend and a young friend asks how much it would cost to put me on retainer to buy a house. I explained to him how in the State of Indiana, in almost all residential purchases the buyer can receive free representation and choose their own real estate agent. If you've never bought a house, then odds are that you've never sold a home...
A seller will (and should) normally hire a Realtor or Real Estate Agent to assist them in marketing and negotiating the sale of their home. We'll call this Agent the "Listing Agent", they will then market the property with a main focus on the local property listing system. [Side Note- Metropolitan Indianapolis Board of Realtors (MIBOR) recently decided to change the name of our local system from MLS (Multiple Listing System) to BLC (Broker Listing Cooperative). I'll discuss this topic on another post.] The seller and the Listing Agent will agree on a price for services upon the effective sale of the home. What you need to understand at this point is that the Listing Agent will use a portion (normally half, sometimes more, sometimes less) of those funds to attract other agents. If the Listing Agent finds the buyer for the property then they keep the entire agreed amount (which can be different that if another agent brings the buyer).
After the property is exposed to the market, in most cases it is another agent who we will call the "Buyer's Agent", that brings a buyer for the property. At the closing, both agents will receive their earnings from the funds agreed to be paid between the seller and Listing Agent.
I explained to my friend that he can visit my website site which focuses on Indiana Real Estate and set up a personalized search for what he is looking for or we could sit down and do it together. I would be happy to review his interested properties and then set a time to visit them. I did recommend that if possible, he drive by the houses to make sure he felt comfortable with the neighborhood and home, before bringing me and looking inside.
Being a Realtor has been a great experience, everyone has different needs when it comes buying or selling a home, and sometimes the same person has different needs at different points in time. Look for posts in the future regarding the following topics: common financing questions, the mess we currently call property taxes, current events, foreclosure, investment, new construction, selling tips, and more.