Great Question!
When you call the number on most Realty signs (excluding Solidarity Realty’s), you will likely reach the listing agent, who represents the best interests of the seller. If you want to see the house, they will meet you there as fast as possible, because once they show you the house they can “double dip” on the commission.
To understand this, you need to understand how agents get paid. Before an agent puts a home on the market, they sign a contract with the seller to get paid a certain amount to sell that home. When the realtor lists the home on the mls (the multiple listing service used by all agents), they must pay the agent who brings them the buyer who buys the home. (Usually, they offer about half their commission fee.) This is why, as the buyer, you almost never end up owing a fee to use an agent. Your agent is paid by the listing agent. There are some exceptions to this for certain properties, but those exceptions occur less than 1% of the time. We can explain those to you before you sign a contract, so you are always in control about whether you incur a buyer’s agency fee or not.
So that all sounds great for the buyer, but there is one strange exception. If the listing agent shows it to the buyer first, they usually revoke their offer to pay your buyer’s agency fees. In this case, if they can get you in the door without representation, and you sign a contract to purchase the house, they likely just doubled their commission! If you want your own agent after you see the home with the listing agent, you would have to pay their fee out of pocket. Open Houses are an exception to the rule: they should be safe as long as you don’t start negotiations on the spot and you ask your own agent the follow up questions.
At Solidarity Realty, no agent will attempt to capture both sides of the transaction. We don’t believe it is ethical. Its always safe to call a Solidarity Realty sign. No matter who answers your call, you will get a “fresh” agent to show you the place, not the listing agent. That way you have someone assigned to represent your best interests. As far as we know, we are the only firm that never allows one agent to represent both sides. You can also choose not to have any agent represent you, but we don’t recommend that.
To avoid having to call the sign, you want to hire your own real estate agent from the beginning, to act as your buyer’s agent. Your agent will schedule private showings with your for any house on the market. A buyer’s agent at Solidarity Realty will work solely to protect your interests throughout the transaction.
