Ever found yourself scrolling through Zillow or Redfin, and you stumble across your dream home? You just have to see it now, and without a second thought you click “Contact Agent”?
Wait! STOP! That simple click could mean more than you think, especially if you already had a realtor in mind you wanted to work with. Let’s unpack what happens behind the scenes when you reach out to an agent through these popular real estate platforms and how it could impact your relationship with the agent you actually want to work with. (hint: don’t do it, please!)
How Zillow and Redfin’s Work Behind The Scene
When you search for properties on sites like Zillow or Redfin, you’re diving into a world of high-tech real estate marketing. These platforms aggregate listings from various Multiple Listing Services (MLS), like RMLS in Portland, to give you a comprehensive view of available properties. Realtors upload their listings to the MLS, which then get distributed to third-party sites like Zillow and Redfin. So all the data on houses actually comes from the local MLS and the listing agent for a particular house. Sounds simple, right?
But here’s where it gets tricky. When you see a listing, there’s often a prominent “Contact Agent” button. The agent you’re contacting isn’t the one representing the property. Instead, it’s typically an agent who has paid for the privilege to appear there. These agents are looking to become your buyer’s agent, and have essentially paid for leads through these sites.
There’s no shame in this game — many realtors have done it, but what does it mean for you?
What Are You Agreeing To & Who’s Really Getting Paid?
So, what happens when you click that button? Essentially, you’re signaling that you want to work with the agent who responds, even if you didn’t intend to switch from your current agent. This can lead to some serious confusion and frustration. Picture this: You’re happily working with your favorite realtor (me) but one innocent click connects you with another agent who then takes you to view and potentially buy a house. Suddenly, Lauren’s out of the picture, and you’re left wondering what just happened.
I can’t tell you how many times this has happened to me, and to my clients. All of the groundwork we’ve done together going out the window because you’re essentially agreeing via this action to work with someone else. It’s heartbreaking. Every. Time!
The Importance of Buyer’s Agent Commission Agreements
This is one reason why buyer’s agent commission agreements are becoming even more crucial (and after August 17th ‘24, the law).
Commission agreements state that you are working exclusively with one realtor, protecting both you and your agent. They outline how your agent will get paid, ensuring they are compensated for their hard work. Historically, the seller’s agent would pay both their own commission and the buyer’s agent’s commission. However, due to recent changes and a significant lawsuit, this tradition could be shifting. Read more about that here.
Under the new NAR (National Association of Realtors) legislation, sellers are no longer required to pay the buyer’s agent commission. This means that buyers might have to pay their agent directly. While this change is still new and evolving, it’s essential to understand how it might affect your home-buying process.
What This Means for You as a Buyer
Navigating these changes can be daunting, especially when you’re already saving up for a down payment. The idea of an additional financial burden might make homeownership feel even more out of reach. But fear not! Most of my clients haven’t had to pay the commission out of pocket since these changes took place. The market is adjusting, and so are the practices surrounding these fees. While I can’t guarantee you won’t have to, this has become a new element of our negotiation process and if there’s anything Team Gochè is known for, it’s our negotiation.
Typically, the cost of commission is wrapped into the price of the house. So, while it may seem like the seller is covering these costs, it’s often reflected in the overall property price. This way, it’s financed along with your mortgage, rather than being an upfront expense.
Staying Informed & ALWAYS ASK QUESTIONS
The bottom line? Clicking “Contact Agent” on Zillow or Redfin is more than just an inquiry; it’s a potential agreement to work with a new agent. To avoid unintentional commitments, always communicate with your preferred realtor and clarify your intentions. I often get folks who are like, “I didn’t want to bother you!!” But you’re not bothering me at ALL. It is my job and my pleasure to show you houses. And don’t be afraid to ask questions about commission agreements and how your agent gets paid. Knowledge is power, especially in real estate!
In this ever-evolving market, staying informed is your best defense. Understand the implications of your clicks, maintain clear communication with your chosen realtor, and ensure you have a buyer’s agent agreement in place. This way, you can confidently navigate your home-buying journey without any unexpected detours.
Happy house hunting!! And remember, I’m ALWAYS here to guide you through the complexities of the real estate world, making your dream home a reality and the journey an absolute freaking delight!
