This is an article that I wrote for our local newspaper:
Most people go to work each day and get paid for the time that they are there. How would you feel if your employer had you show up Monday through Wednesday and didn't pay you? I'm sure it wouldn't be appreciated by any means and most of us can't even imagine that happening.
In case you didn't realize it, Realtors are only paid if the property they listed or sold closes. They are solely paid via commissions generated at the closing of a sale. They may spend time showing properties to many different clients but until a property closes, they are not paid whatsoever.
In the current housing environment, I have been hearing a lot of stories where people are looking at houses with Realtors for 3 or 4 days, sometimes even more. Some of them go to contract, some don't. Certainly, it's not expected that they all will go to contract but there is an expectation the people having a Realtor show them properties are seriously considering buying a property at some point. The stories we are hearing is that there are clients that spend this time looking at properties with a Realtor and then never having any communication with the Realtor again - they avoid the Realtors calls, they don't call them back, and they just drop off the face of the Earth! So on top of having spent days showing clients homes, they are spending even more time trying to get in touch with their clients. I have even heard of people looking at houses just to see how other people decorate so they can get design ideas for their own homes.
While Realtors know that time spent showing property is not always going to result in a sale, the expectation that someone is not just wasting their time is always there. In addition to the time spent actually driving around and showing properties (how much does gas cost these days?), the Realtors are searching for properties that meet the needs and desires of their clients on the Multiple Listing Service (MLS), calling the sellers to make appointments to see the properties, and working up costs for the clients so that all of the data required for their clients to make an informed decision is available when they actually get to the property. There is a lot more involved with being a Realtor than just having a client sign a contract!
If you are working with a Realtor and you decide not to buy at the current time, don't be afraid to let your Realtor know. Your Realtor will be greatly appreciative and certainly understand that circumstances and needs change. If you are just interested in getting decorating ideas, there are plenty of open houses and the Homebuilders have the annual Parade of Homes that will give you access to a score of homes to offer you tips on decorating.
If you are truly serious about purchasing a home, obtaining a mortgage preapproval is an excellent idea. When negotiating your contract, a preapproval goes a long way to help your seller with their decision making and shows them and the Realtor that you are a serious buyer.
Like you and I, Realtors work to support their families and any consideration you can give them is greatly appreciated. Remember the Golden Rule: Do Unto Others As You Would Have Them Do Unto You!
