Buyers /On February 26, 2013

What is “Procuring Cause?”

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One of the most commonly misunderstood concepts in real estate is “procuring cause.” Because agents are generally compensated solely on commission, the “procuring cause of the sale” means the agent who is entitled to compensation.

What happens if two (or more) agents are working with the same buyer? The National Association of Realtors has established guidelines to decide which agent is entitled to be paid. There are many different factors to be considered, and each case is different. Obviously, the best practice is to avoid procuring cause disputes altogether, and there are a number of different ways a buyer can help:

Avoid calling listing agents directly, either from ads or signs

*Remember, your agent has access to all the same info through MLS; because the market moves quickly, by the time many homes magazines hit distribution, many of the advertised listings are already sold. This is another reason you need an agent working on your behalf; if you wait for a property to be advertised, it is often too late.

If you see a for sale sign on a property that you and your agent have not discussed, it is likely that it does not meet one or more of the criteria established in your initial buyer interview.

Avoid visiting open houses or new homes sites without your agent

If you must visita an open house or site and your agent is unavailable, be sure to make it expressly clear that you are actively represented by an agent. Give them one of your agent’s business cards, and fill your agent’s name in on the guest registration.

Ideally, you have a BUYER AGENT working on your behalf. Email us at concierge@lizmoore.com and we can help you find the right buyer agent for your situation, or click below to fill out our form.

Lynnette Tully

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Liz Moore & Associates is a boutique real estate agency renowned for having the region's top agents, with extensive market knowledge and local expertise that is only achieved through relentless training coupled with Liz's extremely high standards for professionalism. When you're buying or selling a home, experience matters.