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ANSWERS FOR BUYERS
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Why Use a REALTOR®?
Anyone can browse listings online. When it’s time to stop scrolling and get serious about buying a home, it’s time to consult a REALTOR® – for professional expertise that’s worth more than a set of search results.
There are literally hundreds of steps between spotting a home and getting the keys at closing. REALTORS® understand the market trends and how to negotiate the best deal on the right home for you. We can guide you through the process, paperwork and potential pitfalls – from qualifying for financing to interpreting inspection reports and everything in between.
Up-to-date Data & Strict Code of Ethics
Buying a house can be overwhelming: You deserve to be represented by a professional, an expert who’s on your side every step of the way.
Not every licensed real estate broker is a REALTOR®: REALTORS® choose to do business by a strict Code of Ethics and a higher set of professional standards, with access to powerful resources, research and educational programs at the local, state and national levels.
REALTORS® also maintain the most accurate and up-to-date inventories of homes for sale through local Multiple Listing Service (MLS) marketplaces. MLS data is the basis for most consumer real estate portals – working with a REALTOR® means going straight to the source while gaining professional expertise and representation.
Expert help finding the right home – your new home.
REALTORS® offer expertise beyond a set of search results: Pointing out pros and cons, interpreting disclosures and inspection reports and making sure you’re comfortable before you close the deal…so the biggest surprise is how much you love your new home.
Professional support through a complicated process.
Owning a home is the American Dream. Buying a home can keep you up at night – but not when your REALTOR® is there to explain the process, tackle paperwork and take time and stress out of the journey to homeownership.
Having your back when the stakes are high.
Buying a home is the biggest investment and most complex transaction most of us will ever make. Homebuyers deserve expert representation to protect your interests, write the best offer and negotiate the most competitive price, and make sure you understand all the financial obligations and contractual fine print.
Protecting yourself – and your options – as a consumer.
You have options when it comes to buying (or selling) a home; working with a REALTOR® isn’t a one-size-fits-all proposition.
When you work with a REALTOR®, services will be clearly explained and you’ll understand the relationship in writing: An Indiana law passed in 2024 requires all licensed real estate brokers to have written agreements formalizing their professional relationships with homebuyers.
Consistent with this law, buyers working with a REALTOR® will sign a more specific representation agreement that includes details on services and compensation before touring homes listed on an MLS. These agreements are flexible (they can cover a single weekend or even specific properties), compensation is always negotiable and you’ll have the chance to discuss your priorities, expectations and timing before signing anything.
Get Answers about Getting Started with a REALTOR®
Why should I work with a REALTOR®?
Buying or selling a home is a life-changing decision, one of the largest and most complex financial transactions most of us will ever make. You deserve to be represented by a professional, an expert who’s on your side every step of the way.
REALTORS® choose to do business by a strict Code of Ethics, a higher set of professional standards and a commitment to consumer fairness and transparency.
Protecting real estate consumers
You have options when it comes to buying (or selling) a home; working with a REALTOR® isn’t a one-size-fits-all proposition. Compensation is always negotiable, services will be clearly explained and you’ll understand the relationship in writing before you begin working with your REALTOR®; you can count on your REALTOR® to protect your interest and provide value that’s worth more than a set of search results.
Why do I have to sign an agreement to start working with my REALTOR®?
An Indiana law passed in 2024 requires all licensed real estate brokers to have written agreements to formalize their professional relationships with homebuyers.
Consistent with this state law, buyers working with a broker who is a REALTOR® will sign a more specific representation agreement that includes more details on services and compensation before touring homes listed on an MLS.
These agreements help buyers understand their rights, the responsibilities of their broker/REALTOR® and compensation – which is always negotiable and not set by state law.
Why can’t my REALTOR® show me a home without signing an agreement?
Indiana law requires a written agreement for real estate brokers to represent a homebuyer (an “agency” relationship) – touring and talking about how a home matches your preferences (and fits your budget) likely crosses the line into representation, especially if you’re interested enough to start thinking making an offer.
MLS rules are even more specific than state law: REALTORS® must have signed agreements to represent buyers and show homes listed on the MLS.
What is the ‘agency relationship’ between real estate brokers and clients?
“Agency” defines the relationship between a real estate licensee and a buyer, minimum duties and other legal obligations of real estate brokers to their clients.
So for homebuyers, signing an agency agreement only puts the relationship that already exists in writing to confirm your broker is representing your interests.
Does this lock me into a contract with a REALTOR®?
As a consumer, you have choices when it comes to the agreement: Terms of a buyer agreement are flexible and can be short-term, signed for a weekend, a single day, or even specific to one property.
An agreement with a REALTOR® will also include details on compensation so you understand how your REALTOR® can be paid after a successful sale.
REALTORS® understand the that saving a down payment is tough, and cash is tight at closing; you’ll learn about options for seeking buyer broker payment from the listing (seller’s) broker or the seller directly as you negotiate an offer on a home, just like closing costs.
When do buyers need to sign a representation agreement?
A written buyer representation agreement must be executed when a buyer becomes a client; this doesn’t include casual conversation, general advice or some preliminary discussion of the real estate market and the types of homes you’re interested in.
An agreement should be signed before you share any confidential information with your broker; more specifically, an agreement must be signed with your REALTOR® before they can tour a home listed on an MLS with you (this includes “virtual” showings).
Does a buyer have to sign an agreement to be represented by a real estate broker?
Without a written agreement, a licensed real estate broker cannot provide agency services to a client in Indiana. Buyers can always choose whether to be represented by a real estate broker but cannot be represented without a signed agreement.
Buyers can browse homes online and even be shown a home on the MLS by the listing (seller’s) broker – however, there is no agency relationship between unrepresented buyers and listing brokers: They represent the seller only (unless both the buyer and seller agree in writing to have the same broker represent both sides of the sale).
Are buyers better off ‘going it alone’ without signing a representation agreement?
Clients sign written agreements with attorneys, financial advisors, accountants and other professionals to formalize these important relationships; you should expect the same protection and clarity through the process of one of the largest and most complex transactions of your life – buying a home.
There are literally hundreds of steps between spotting a home and taking possession with a successful purchase, all taking time and professional expertise; many of these steps have significant financial and legal ramifications that could be easily overlooked. Buyers deserve to have an expertise representing their interests – representation agreements only put this important relationship in writing.